Junta to probe into sources of income of gold coins buyers

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Mawlamyine, November (26)

The military council said it will probe into the sources of income of those who buy gold coins, as businessmen are involved in purchasing gold coins sold by authorities attempting to keep domestic gold prices low.

The Ministry of Natural Resources and Environmental Conservation started selling gold coins in Nay Pyi Taw, Yangon and Mandalay in September with the aim of lowering the domestic gold price.

The military council said that some businessmen asked the grassroots to buy gold coins by paying them, then melting down the gold and selling it for profit.

An official of the Yangon Region Gold Entrepreneur Association said that he did not know the purpose of the military council to check the income of gold coin buyers, and whether it was done to manipulate the cross-border sales of speculators.

In addition, in order to control domestic gold prices, the military council has checked whether there is any money laundering by gold entrepreneurs who have been withdrawing a large amount of money from banks in the past few days.

A gold businessman said that since the gold coins don’t contain 100% pure gold, the military council’s claim that the businesspeople are melting down the gold coins, creating different designs, and then selling them for a profit is impossible.

According to the gold traders, the military council is selling three types of gold coins weighing 1 tical, 0.5 tical and 0.25 tical, at open market price in an effort to lower the price of gold.

At the moment, the dollar price and the global gold price are stable, and one kyat of gold remains at a high price of more than  Ks 2,600,000, with a high supply and a low demand.

Prior to the military coup, one tical of gold in the country was only around 1,300,000 under the NLD government, but after the coup, the price of gold has nearly tripled, with the price fluctuation.

News-Than Lwin Times

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