Gold price sees a fall
The price of gold jewellery in Laos has seen a slight fall in recent weeks despite rising demand over the Vietnamese and Chinese New Year.
Lao Gem Jewellery Trader Association president Phouvong Phamisith said the price of 99.99 per cent gold jewellery in Vientiane was about 6.68 million kip (Bt25,000) per baht (15 grammes), down from 6.88 million a few weeks ago.
“Demand is quite high at this time of the year but this hasn’t driven up the price as has happened in the past,” he said, adding that the price of gold jewellery on the Lao market depended on the global market price.
“The price of gold in Laos changes as soon as there’s a movement on the global market because the world is now connected. What happens elsewhere in the world now impacts Laos immediately,” he said.
According to www.Goldprice.org, the price of a gold bar on the world market was about US$1,671 (Bt49,835) per ounce on Friday.
Phamisith said one of the main reasons for the fall in the price of gold at present was because the metal had risen so high in recent weeks. “The price of gold reached a peak so it had to come down.”
He also said the price of gold had fluctuated considerably in the past few years due to uncertainties in the global economy.
Phamisith, who has been trading in gold for decades, predicted that the price of gold both globally and in Laos would remain stable and continue to rise in the long term, adding that the commodity was one of the safest bets for investors.
He said it was not common for the price of gold jewellery to fall over Chinese and Vietnamese New Year, because it is a popular gift item around the world.
The current drop in the price of such items on the domestic market would benefit those who like to buy jewellery as a gift and want to save for the future. Phamisith believed the price of gold would continue to rise in the long term so purchasers would be able to make a profit from their investment.
According to statistics officials, the price of gold fluctuates by at least 10 per cent each year.
Gold traders say the best time to buy gold for short term gain is when the price starts to rise because then people have a chance to sell at a higher price later on. It’s not a good idea to buy gold when the price starts to fall, they advise.
