Gold sales fall in Arakan State

16 Jul 2019

Soe Aung | DMG 

16 July, Sittwe

Since the ongoing fighting between the Tatmadaw and the Arakan Army has resulted regional instability and joblessness, sales of gold have been falling in Arakan State, gold shop owners said.

“People are jobless now, no one has a job to earn income. People from the lowest to the top socio-economic levels cannot earn money. Most people have to pawn their personal property for their day-to-day living. Some people resold their gold. So, we have to buy gold from them.  Now we are buying more gold than we’re selling,” said Daw Khin Myo Than, owner of Shwe Tharaphu gold shop.

Currently, the price of gold isn’t great in Arakan State, but the demand has decreased, gold shops owners said.

Another reason for the decline in gold sales is with the agricultural business; farmers resell or pawn their gold to repay their old debt to the agricultural bank. Meanwhile, some people have to pawn or resell their gold for their daily expenditures because they could not generate income because of fighting in the region.

“People had been displaced from their homes and face difficulties getting food and accommodations. They do not know what personal property they should use as financial collateral because they’re not in their own homes. Gold shops accept only gold as collateral,” said Daw Aye Myat Wai, owner of Moemakha gold shop.

The current market price of gold in Arakan State is K 1,334,000 (US$ 890) per tical (kyattha) (16.606 grams) and K75,000 (US$ 50) per 12 petha ( a petha is equal to 1.02058 grams).