Action has been taken against some gold merchants, shop owners and those making verbal deals, U Myo Myint, Chairman of the Yangon Region Gold Entrepreneurs Association (YGEA), told The Global New Light of Myanmar (GNLM).
The YGEA announces the price of gold three times a day, and due to some speculators, the price in the external market is unstable, so the authorities concerned have taken action, he said.
“The market price is unstable because of some speculators. So, the department concerned is taking action. Some of them are gold traders, some are shopkeepers, and some are the groups making verbal deals,” he said.
According to a request letter issued by the YGEA on 12 March, gold traders have been urged to trade just below the prescribed price and to avoid spreading rumours and speculations.
“The reason behind the unstable market is not actual trading. For example, a verbal dealer bought gold for K4 million, but he had no money to pay in the evening, so he pawned it to another person with K3,000 daily interest. The next morning, the oral dealer sold his gold at K4 million plus the interest he had given. That’s how Lae Pucca (verbal deals) are made. A verbal deal is a non-physical deal with no actual gold or money. These verbal dealers trade on Facebook in the evening. If you tell them you want to sell, they will reply that they are not buying. They are just posting the price. And if you want to buy, they will deliver the gold. It is a series of lies and deceits,” he said.
YGEA’s prices per tical of premium gold on 12 March and 13 March were K3,792,600 and K3,795,800, respectively, at 10 am opening, K3,794,900 and K3,795,800 respectively at 12:30 mid-day, and K3,796,600 at 2:30 pm closing on 12 March. — MT/ ZN
