Gold market makes comeback
Gold market makes comeback
Gold prices on the Cambodian market have risen sharply despite the far-reaching effects of Covid-19 on the regional and global economies.
An employee at a jewellery shop in Kandal market in Phnom Penh’s Daun Penh district who asked not to be named told The Post that retail gold prices had skyrocketed since early in May.
On Tuesday, the shop’s sell and buy prices of gold stood at $2,200 and $ 2,170 per damloeng (a local unit of weight equivalent to 37.5g), respectively, she said.
Meanwhile, platinum at 7.5-teuk (a local measurement of the ratio of a precious metal to other metals or alloys; this is equivalent to 18 carats or 75 per cent purity) sold for $1,680 per damloeng, she said, noting that the shop’s prices are correlated to international prices.
A damloeng is further divided into 10 chy, 100 hun or into tiny 1000 ly bits, while a neal is 16 damloeng, or 600g. Understanding these local units of weight is vital for anyone considering doing business with gold traders in the Kingdom.
The employee added that the shop’s per-damloeng price for gold and platinum had been $1,800 and $1,300, respectively, prior to Covid-19.
She said: “Nowadays, my shop is selling better than before. We mainly sell wholesale to customers from across the provinces. We make $30 in profit per damloeng on wholesale transactions.”
Another goldsmith and dealer running a stall in the district’s Phsar Chas market said her sell and buy prices of gold are currently $219 and $217 per chy (3.75g), respectively, while platinum sells for $153 per chy.
“The gold market has come roaring back after weathering headwinds from the Covid-19 crisis. But now people are beginning to shop and spend money again, propping up the rise in gold price over the last three or four months,” she said.
Chhea Chhayheng, a financial adviser for derivatives brokerage firm Golden FX Link Capital Co Ltd, noted that the gold price on the Cambodia market shot up to $2,200 per damloeng from a paltry $1,600 in a short span.
The Covid-19 global health crisis has ravaged the regional and global economies, melting away people’s confidence in the US dollar and coaxing them to buy gold in hopes that the price will extend its upswing, he said.
“We’ve observed that when there is a crisis, the price of gold will always trend up,” Chhayheng said.
Cambodia exported more than $418 million worth of gems and jewellery to the international market last year, the Ministry of Commerce reported.
It said Singapore is Cambodia’s largest export market valued at about $226 million, followed by Thailand with $165 million and the US – worth more than $23 million.
Other export destinations include Vietnam with more than $3 million, Belgium with more than $1 million, Japan with more than $110,000, Italy with nearly $20,000 and China with more than $10,000.
Cambodia also imported more than $194 million worth of gems and jewellery last year to supply the domestic market. Thailand, Singapore, Canada, Belgium and Hong Kong are Cambodia’s largest import markets among 16 other destinations, including the US, India, China, Vietnam, Japan, Malaysia, South Korea and Italy.
Credited: The Phnom Penh Post
