The custom of saving gold won’t disappear. People love gold.

while we’re buying or selling gold. We also have different installment practices for buying property, so we need more cash flow in the market. When the government prints more money to meet requirements, inflation increases.

How is the gold production rate in Myanmar at present?

It’s possible that gold production will decline soon as current production levels are massive. It’s amazing that gold can be found in all 14 states and regions, although the production rates are different. Myanmar gold production could be among the highest in ASEAN. However, natural resources will run out sooner or later. The production of rubies, jade and gems is decreasing in Mogok and Hpakant right now. But gold production is still quite good as there are new gold plots around the country and demand remains high.

How is the gold market performing in relation to people’s spending power?

The gold market is still stable. Businessmen usually obtain gold for their savings before they start their business. For example, some usually buy gold before export season begins then later sell this gold and spend the money on their business. But [this alone] doesn’t increase demand significantly. Normally supply and demand balances. And we are surrounded by markets in countries like India, China and Bangladesh who like gold. So the market remains active, even when sales are not legal. This means that even when the domestic market is slow, the border trade can be energetic.

Do you think demand for gold will rise after the increase in government salaries in April?

Government salaries will be affected from the end of April so I can’t say right now what will happen. Some people say that the gold price will increase with increased salaries, but for me, yes, it will increase but only a very small amount. Because of the US exchange rate, the gold price has already increased even before the salary rise. If world gold prices increase, the local price will also go up, not so much because of higher demand in the local market.

Do you think the gold market might be impacted with the introduction of Myanmar’s first stock exchange later this year?

Recently people were strongly interested in investing in property, rather than buying gold, as the world gold price decreased over the last two years. But I don’t think people will be less interested in investing in gold due to the stock market. The gold market will also be an important part of the stock exchange, as the nature of the stock market is that it welcomes a variety of commodities. The items are different, so they will sell at different share prices. It will also take time for people to learn about the stock market, but they already know about the gold market and can even guess [future fluctuations]. That’s why the gold market won’t decline at that time.