The Financial Express

Per bhori gold price increases by Tk 9,390 in a year

Govt’s scheme to legalise undeclared gold fails to ensure a stable market

| Updated: August 26, 2019 18:28:34

Evaly and Fianancial Express Evaly and Fianancial Express
Focus Bangla file photo used for representation Focus Bangla file photo used for representation

Price of gold in the local market has increased significantly in the last one year mainly due to the change in the international market.

However, it was expected by the buyers to witness a stable gold market following the government's scheme to legalise undeclared gold.

According to data available with Bangladesh Jewellers Samity (BAJUS), the price of per bhori 22-carat gold has increased by Tk 9,390 in a year.

The value of per bhori 22-carat gold was Tk 47,472 on August 06 last year (2018), which has been increased to Tk 56,862 on August 19 this year (2019).

One bhori equals to 11.664 grams.

The BAJUS, trade association of local jewellers, fixes per gram price of gold.

The trade body revised the cost of per bhori gold seven times so far this year (2019), according to data available with the BAJUS.

In the latest move, the price of per gram 22-carat gold was fixed at 4,875 on August 19 from Tk 4,775 on August 07.

The price of per gram 22-carat gold was Tk 4,070 on August 06 last year (2018).

Prices of other quality of gold-21-carat, 18-carat and traditional (sanatan) -- have also increased proportionately during the same period.

When contacted, BAJUS Vice President M A Hannan Azad said the price is on the rise mainly due to the price change in international market.

"The cost of per ounce gold increased by US$ 150 in the last one month in global market," he said, adding that the local price is still lower compared to the international market.

He identified sluggishness in some international stock markets as the key reason for the rising demand of the precious metal.

"Many investors opt for gold as the best investment opportunity when there is dullness in the bourses as well as conflicts among nations," he said.

According to moneymetals.com, a website to help trace gold price, the value of per ounce gold was US$ 1,527.5 on last Friday, which was US$ 1,283 in January this year.

Insiders said the trade war between the US and China is also playing a role for the price hike in global market.

They added, after the US imposed tariff on China, the East Asian nation started increasing its gold vault decreasing the reserve for gold.

Earlier, the government of Bangladesh allowed jewellers to legalise their undeclared gold in a three-day fair last June.

During the three-day event that ended on June 26, Jewellers paid taxes equivalent to Tk 1.75 billion to whiten their undeclared stock of gold.

They paid Tk 1,000 as tax for whitening each bhori of the metal.

According to sources, there are over 10,000 jewellers in the country at present, while the demand for new gold is around 18 to 36 metric tons per year.

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