Gold shop owners suspend gold purchases in Arakan State

By Admin 03 Aug 2024

DMG Newsroom
3 August 2024, Sittwe

Gold shops in Arakan State have suspended buying gold as many residents are selling their gold jewellery amid worsening economic hardships in the war-torn state.

Many residents are either selling or pawning their gold jewellery due to cash shortages and rising prices blamed on ongoing armed conflict in the state, said gold shop owners.

One gold shop owner in Mrauk-U town said: “We have suspended buying gold jewellery. People are selling or pawning their gold jewellery due to financial hardships. But cash is in short supply and gold shop owners can’t offer the money.”

Meanwhile, business owners in northern Arakan State who have cash reserves are buying gold jewellery from cash-strapped locals at prices below market rates. They offer 4.5 million kyats for a tical of 24 karat gold, and 4 million kyats for 22 karat gold, and resell 24 karat gold for 5 million kyats per tical, and 22 karat gold for 4.5 million kyats per tical.

However, elsewhere in Myanmar, gold prices have hit nearly 7 million kyats per tical due to higher demand. Many who have the financial means are investing in gold with little to no trust in the kyat, which has weakened significantly since the February 2021 coup.

One Kyauktaw resident said: “I had to sell my savings of gold jewellery at the prices they offer due to livelihood hardships. Some internally displaced people (IDPs) only got 4 million kyats for a tical of gold. Many have been forced to sell or pawn their savings due to ill health.”

Since the banking system has all but collapsed in Arakan State, residents rely on mobile wallet services such as KBZ Pay and Wave Money. Mobile money agents charge a high rate for cash withdrawals due to the scarcity of banknotes.

Arakan State residents are also suffering from shortages of goods, high unemployment and hyperinflation.