For the past one to one and a half years, the price of gold in the country has been out of reach for ordinary buyers. The business has seen a slump since then. With gold prices continuing to rise this month, jewelry shops have seen a significant drop in customers. It's the same in India and Dubai as well.
Currently, gold prices are at an all-time high in the country, with quality gold costing Tk 186,000 per bhori. In this situation, hardly any customers are coming to buy new jewelry or selling their old gold ornaments. Many expect that gold prices may exceed Tk 200,000 and are choosing to wait. However, some people are selling old jewelry out of urgent need and are making good profits.
Due to various complications, there is little progress in legally importing gold into the country. This forces local buyers to purchase at prices slightly higher than the global market rate. In contrast, central banks in many countries import and sell gold. If the central bank in our country steps in, ordinary people could buy gold at somewhat lower prices. It would also open the door for gold investment and bring transparency to the jewelry business.
Moreover, by selling gold, the central bank could generate significant revenue for the government treasury. Therefore, to restore order in the gold market, the government needs to approach the issue with a proactive and positive attitude.
* Masudur Rahman is Vice President, Bangladesh Jewellers Association