A vendor lays gold chains out in a display case at a jewellery shop in Phnom Penh. Sreng Meng Srun
Thu, 9 June 2016 ppp
Gold retailers continue to enter into the Cambodian market despite a drop in demand in recent months as prices remain stable, according to local retailers.
Retailers speculate that the decrease in demand is the result of gold prices being stable for the first four months of this year, fluctuating between a January low of $1,400 per damlung of gold to today’s $1,500.
Heng Chhaytith, owner of Heng Chhaytith Gold and Jewelry shop, said that currently it is a buyer’s market with 70 per cent of his customers coming to sell.
“Now it is planting season and many people need capital so they sell gold for money to grow crops,” he said. “Gold price increased a bit compared to early this year, which could also be the reason that number of gold sellers have increased.”
Seang Lim, manager of Ly Hour Money Exchange and Jewelry, said the number of customers at her shop has declined noticeably compared to earlier this year.
She currently sells about 20 damlung of gold a day for $1,505 each compared to the more than 50 damlung she sold per day for $1,400 in January.
“When prices decrease, more people come to buy,” Lim explained. “For instance, if prices decrease to 1,300 per damlung, I can sell nearly 100 damlung of gold per day.”
According to Bloomberg, gold was sold at $1,254 per ounce yesterday.