Goldsmiths hit hard by rise in precious metal’s price coupled with drop in demand

28 Feb 2022

DMG Newsroom
28 February 2022, Sittwe 

A slump in gold sales has goldsmiths facing business difficulties, with purveyors blaming a spike in gold prices after Myanmar’s military coup, which was accompanied by a decline in buyers of the precious metal. 

“People can buy gold when they have extra money. So, sales are lower because of their economic condition. There were some gold sales last year, but it is lower this month because of the gold price surge,” Ko Tin Aung Soe, a goldsmith in Sittwe, told DMG. 

In Sittwe, a tical of 24K gold was priced at more than K1.94 million on Monday, and 23K gold was priced at K1.75 million, up about K150,000 compared with last year. 

Some goldsmiths have suspended their businesses as there are fewer customers and buyers amid the gold price rise. 

Ko Maung Phyu Chay, a goldsmith in Sittwe town, said: “Gold shops do not tell us to make gold items now, so we cannot earn income. We are awaiting the day when we will be able to resume our work.” 

A tical of 24K gold in Sittwe was priced about K1.82 million in January, but it exceeded K1.94 million in February, gold shops said. 

“Sales are lower now. Some workers leave their jobs. Some workers who keep working here are depressed because they do not have work. I can’t predict whether the gold price will fall,” Ko Myo Min Oo, owner of Amay Eain gold shop, told DMG.  

Volatility in the local gold market has been just one consequence of the military coup in Myanmar: Since the regime calling itself the State Administration Council (SAC) took power on February 1, 2021, the kyat has weakened significantly against the US dollar, commodities and fuel prices have risen sharply, and the tourism industry nationally and in Arakan State has foundered.