Buyers cheated in local gold market

The price of gold has gone downhill internationally. However, the international price fall barely influenced the local gold market in Bangladesh. 

The recent 2015 price of 22 carat gold in Bangladesh is Tk 41,757. In 2011, the price was Tk 41,232. In these five years the Bangladesh Jewellers Samity (BAJUS)has been responsible for adjusting the price of gold. On 6 August, the association deducted Tk 1,224 per bhori of gold.

According to the commodity exchange market, the 24 carat gold price per ounce was US $1112.9 on Thursday.

In keeping with international market prices,  22 carat gold should have been sold at Tk 30,585 per bhori but buyers have to pay Tk 11,171 extra per bhori.  

In neighbouring India, 22 carats gold per bhori is 28,576 rupees.

Requesting anonymity, a member of the Jewellers’ Association said, “last Ramadan revising gold prices was proposed but most of the members didn’t agree. This is why there is such a huge difference in price.”

“We set the price taking into account the jeweller’s wages and other expenses.  Jewellers charge Tk 100-150 per gram of finished gold jewellery.”

BAJUS president Kazi Sirajul Islam told Promthom Alo, “We cannot purchase gold legally here in Bangladesh. Most of the gold is being sourced from old jewellery and ‘luggage parties’ (people who bring gold from abroad for personal use).”

“A jeweller is paid two ‘ana’ of gold for every one bhori of finished gold jewellery. On top of that we have to pay seven percent VAT to the government. We have to consider these things when setting the price of gold,” he added.

When asked about the ethicality of the huge difference in the price of gold at home and abroad, he said, “If the price falls, businesses will benefit eventually. Buyers would order more if the price falls.”