Wednesday, November 21st 03:25 PM IST

Gold smuggled out of Burma in to China

# China gold  # largest gold consumer  # Burma gold  # gold smuggling  

Analysts said if the Burmese government had not forbidden gold merchants from speculating, the gold price could have trim the huge margins with global prices.

YANGON(BullionStreet): Burma's gold trade remained sluggish as demand is almost dead as a result of the inflated prices but gold is being traded illegally on the black market, analysts said.

Myanmar Gold Entrepreneurs Association said gold was being smuggled to China and authorities have yet to take any effective measures to prevent it.

Smugglers are making a lot of money as the Chinese are offering prices near to global level for gold they accumulate from Burma which is way below global levels.

Association said people are taking the opportunity of selling their jewelry to black marketeers at these high prices on the basis that they can buy back when the prices go down again.

The Association said that curbing illegal gold trading would enhance the stability of the Burmese gold market. They believe that the price of gold will continue to increase in the country until the end of the year.

Gold was currently sold at around 773,700 kyat per tical (0.58 ounces) but compared with global prices, it remained well below the average price.

Compared with global average gold price of $1770 per ounce in October, Burma gold prices need more boost to catch up with international prices.

In September, the price of gold peaked at 794,000 kyat ($900), a new record in the country. In 2007, it had dipped to below 500,000 kyat per tical.

Analysts said if the Burmese government had not forbidden gold merchants from speculating, the gold price could have trim the huge margins with global prices.

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