Gold has become an unprecedentedly valuable asset in Bangladesh as its price is skyrocketing by a staggering 40 per cent over the first nine months of the year, affecting everything from the country’s investment portfolios to the local jewellery market.
Mostly used as jewelry, the high price has dipped the demand for the precious metal. Gold jewelers now spend most of their time in the day doing nothing. Their sales have halved compared with last year.
At the end of last year, the price of 22-carat gold was Tk 138,288 per bhori. Nine months later, the cost rose to Tk 195,384, setting a new historic record for the price. The previous record was made on September 23, when the price of 22-carat gold reached Tk 194,859.
The latest gold price hike of Tk 2,415 per bhori became effective on Tuesday. The gold price increased by TK 21,000 per bhori in September alone.
The Bangladesh Jewelers’ Association (BAJUS) regulates gold prices in the country.
‘Gold prices have been rising uncontrollably for decades. In 2000, the price of one bhori of gold was below Tk 10,000,’ said Gobinda Halder, a gold trader in Tantibazar. ‘Relentless price hikes halved customers,’ said Gobinda.
Buyers now mostly come to jewelers to sell gold or take a loan against the precious metal.
The BAJUS describes the event of gold price change as a price adjustment, which actually saw the price rise 41 times until September this year. The gold price, on the other hand, dropped 17 times, with the latest fall in the price coming on September 27. Last year, the gold price was adjusted 62 times, including 35 hikes.
Historical data from BAJUS shows that in 2000, the price of 22-carat gold per bhori was Tk 6,900. By 2010, it had risen to Tk 42,165, and by 2020, it reached Tk 59,195.
The gold price increased 229 per cent over the last five years. In the past decade, the price has risen by 361 percent. The gold price has gone up by a whopping 2719 per cent over the last 25 years.
‘Gold price increases depending on the bullion market,’ said Masudur Rahman, chairman of BAJUS’s Price Fixing and Monitoring Standing Committee.
The Russia-Ukraine war, dollar depreciation and increased reserves in China’s central bank have influenced the price hike, he said.
