Tuesday, 13th December 2005 (5283 views)

The Bangladesh Jewellers Association (BJA) has caused a stir by announcing that it has lifted the price of 22-carat gold ornaments by five per cent to Tk 13,800.

22-carat gold was selling at just Tk 10,905 in January and the country has never seen such a steep price hike in such a short space of time.

The move was prompted by the recent run on gold on world markets but has drawn concern from local jewellers.

Talking to the Financial Express, one jeweller called the move "unethical", because most Bangladeshi jewellers do not sell 22-carat gold ornaments.

He argued that 22-carat gold should be selling below the current price of 24-carat gold, because it is less pure. However 24-carat gold was selling at just Tk 12,600 until yesterday (December 12th).

"When you buy gold they are giving you 22-carat but charging very high prices. Again when you sell them back they will deduct 20 per cent commission. So you are, in fact, being deceived twice," said Guinea Exchange Jewellers' owner, Aftab Ahmed Khan.

The BJA has responded by saying it was "compelled to raise the price of our jewelleries".

Bangladesh is renowned for its wealth in archaeological riches, including gold ornaments. The country boasts over 10,000 jewellery shops.

 

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