Gold has become even more costly in the local market as the Bangladesh Jewellers' Association (Bajus) has increased the price by Tk10,054 per bhori of good quality gold in two instances this week.
Bajus increased the price by Tk5342 per bhori once, and then again by Tk4712 per bhori this week. They (Bajus) have increased gold price 19 times this year, while they have decreased price 6 times.
Bajus on Tuesday fixed good quality 22-carat gold price at Tk177, 887 per bhori (11.664 grams), which will be executed from tomorrow (Wednesday).
On Saturday, the Jewellers' Association fixed the 22-carat gold price at Tk 167,833 per bhori. On Monday, Bajus fixed the price of the same quality of gold at Tk172,545 per bhori, before the latest revision today, setting the price at Tk 177,887 per bhori.
The global experts however have warned against investing in gold. The British owned BBC in an analysis said that the gold market would be more volatile and individual investors might face difficulties investing in gold.
The price in Bangladesh is even higher than the global market, yet Bajus, headed by Bashundhara Group Managing Director Sayem Sobhan Anvir, keeps increasing the gold price, claiming a price hike in the global market.
Goldman Sachs has forecast that the global price of gold could reach $3,700 per ounce by the end of 2025. One ounce equals 31.1035 grams.
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The Bangladesh Jewellers' Association (Bajus) has fixed the 22-carat gold price at Tk14,389 per gram. Accordingly, the local price of one ounce of gold stands at Tk447,548.
But, the current spot price for gold in the United States is approximately $3,328.30 per ounce, equivalent to around Tk402,724.
This means gold in Bangladesh is being sold at Tk44,824 higher than the international market rate - per ounce.
In addition, Bajus stated that the selling prices of gold and silver must include a 5 percent VAT as mandated by the government.
It means a gold ornament of 22-carat weight, a bhori will cost at Tk 196887, nearly Tk 2 lakh.
As a result, people are refraining from using gold and the middle-class families are using other metals instead of gold. The gold in Bangladesh is costlier than the global market.
As per the new pricing, from Wednesday, hallmarked 22-carat gold is being sold at Tk 1,77887 per bhori, 21-carat at Tk1,69804 per bhori, and 18-carat at Tk1,45,543 per bhori. Besides, the price of traditional method gold has risen to Tk 1,20,512 per bhori.
On Tuesday, hallmarked 22-carat gold was sold at Tk 1,72,545 per bhori, 21-carat at Tk1,64,695 per bhori, and 18-carat at Tk1,41,169 per bhori. Besides, the price of traditional method gold has risen to Tk 1,16,779 per bhori.
Bajus has increased the silver price also. 22-carat silver price was fixed at Tk2846 per bhori, 21-carat silver at Tk2717 per bhori, and 18-carat silver at Tk1749 per bhori.