Aung Thamardi Gold ShopThe Aung Thamardi Gold Shop
Rise in gold prices results in jewelry sale
av _abdm = _abdm |||| ;_abdm.push(["1512023572", "InPage", "1512024292", "InPage_1512024292"]); var _abdm = _abdm |||| ;_abdm. push (["1512023572", "InPage", "1512024269", "InPage_1512024269"]); Gold could have been affected by the appreciation of the US currency this year, but showed evidence of survival last weekend, the locals said. Yangon -based Aung Thamardi Gold Shop sells gold at K701,500 a gold price tag (16.25 g or 0.576 ounces) on May 6, a modest increase on the Mt. K690,000 a gold price tag on May 6, said a spokesman of the corporation.
"In the last few weeks, the rate has risen slightly due to the volatility of the forex market," he said. In New York City, adidas saw a rise in adidas metals of $1,194 anoz last night, up about 2 per cent last weekend, roughly in line with the rise in domestic demand.
Some gold had fallen even further last year. Dealers say that the primary gold price determinants are the US dollar's relatively strong, with the two generally floating in inverse relation to each other. Taik Sein gold storekeeper U Zaw Aung said the price is now higher than in some places this year, which means he is getting an increment in the number of individuals who want to trade their jewelry for it.
Banks insist on rethinking securities
Bankiers are calling on the Central Banks of Myanmar to extend what can be considered "collateral" for credit. Prior to the 2003 financial meltdown, gold and automobiles were accepted, but after the meltdown only real estate - real estate, homes or flats - remained eligible as security for credit.
"There are many different things in other nations that a bank can consider as security for a credit. We can' t borrow as much as our bankers want because the rules on securities are so strict," said U Than Lwin, a pensioned assistant central bank governor. "Gold, precious stones and jewelry should be admitted as security so that a bank can borrow more than that.
Lending allows money to allow money to help companies begin or grow their business, expanding the business and creating jobs," said U Than Lwin. Than Lwin said it makes good business to use gold as security because many prefer to buy gold as their saving rather than to use it as foreign exchange or banks' saving.
Said the tight security arrangements mean that those who wanted to borrow but had no immovable assets had no other option than to obtain debt from the mortgage lender or other non-formal lender, whose interest rate was twice that of the bank. Banking is only permitted to pay 17 per cent interest, while non-formal creditors require at least 34 per cent and sometimes even more.
U Than Lwin said, however, that the central bank had good reasons to stop using gold as security in 2003. "A few folks played the bank by using gold as security to take out credits, which they used to buy even more gold, which they used as security to borrow even more of it.
This was a system that worked well when gold was high," he said. "I' d like to say that you can do the same thing with immovable property," he said. In addition, he added that the policy maker is unlikely to understand the monetary ýcreation theoryý, in which the Federal Reserve loaned funds to business institutes, which in turn granted credit to single creditors and stimulated trade.
"It is an integral part of the banker' s work and if the central bank were to understand it, gold would be eligible as security for loans," said U Than Lwin. Thet Lwin, Managing Partner of the Asia Green Development Bank, said he was in favor of gold being reused as security.
"Golden is cash and many will have it, so I think we should use it as security for loans," he said. Yangon Institute of Economics retiree U Maw Than went on to say that gemstones and jewelry should also be regarded as security for credit.
"They are all cash and should be admitted as collateral," he said. Myanmar Times journalist and Yangon Institute of Economics Master of Business Administration U Myo Lwin said that using gold as security would be a great advantage for the country's peasants.
"The peasants are the most important municipality in Myanmar and the promotion of the well-being of this industry is essential - 70 percent of our people work directly in agriculture," he said. Myo Lwin said that growers buy gold when they are selling their crops and using it as easy to convert saving until the next year.
"When the peasants could use their gold as security for credit, they would not have to lend from domestic pawnbrokers or pawnbrokers who demand incredibly high interest rates. Should those peasants be able to resort to banking credits at only 17 pc instead, they would be much wealthier," he said.