Monday, 23 August 2010

Hard asset: Gold prices close in on local record


via Khmer NZ

Monday, 23 August 2010 15:02 Soeun Say

Hard asset

CAMBODIA’S gold prices increased 2 percent last week in line with global prices, nearing record highs, Phnom Penh dealers said yesterday.

One damlung – the King-dom’s preferred method of denominating gold, equal to 1.2 troy ounces – traded at US$1,480 on Sunday, up $30 from $1,450 a week earlier, according to officials from Phnom Penh’s Ly Hour Exchange.

“The surge in Cambodian gold prices is due to rising prices on international markets,” Ly Hour owner Sieng Lim said yesterday.

“But we cannot predict whether gold will increase or decrease this week: Everything depends on international markets.”

Most of the Kingdom’s gold arrives from overseas markets such as Singapore and Hong Kong, according to Sieng Lim.

Gold previously climbed as high as $1,510 per damlung on the Ly Hour Exchange in June.

It closed at $1,228.10 a troy ounce Friday on the New York Mercantile Exchange, below its all-time record of $1,265.30 on June 21.

Virin Ratank, owner of Phnom Penh-based dealer Virin Ratank Gold Jewelry, said gold was testing all-time highs on domestic markets, benefiting those who denominate their savings in the precious metal.

“Khmer people like to save in gold rather than cash,” she said. “So when it goes up in price, many people will benefit.”

However, the domestic gold prices were difficult to predict.

“Today, I’m selling gold at $1,480 per damlung, but for tomorrow, I don’t know.”

Mokod Pich Gold Shop near the capital’s Central Market was also selling at $1,480, said sales representative Kong Vichka.

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