TDS Desk:

The year Bangladesh gained independence, the price of gold was Tk 170 per bhori. Now, 54 years later, most people would be shocked to hear the current price. However, gold has always been a precious metal.

Take the present situation, for example — the price of high-quality gold is now Tk 186,000 per bhori. Where this price might go in the future is uncertain, but forecasts suggest that global gold prices may rise further.

Gold prices are closely tied to global economic trends. Economic uncertainty usually leads to a rise in gold prices, as countries tend to invest in gold during volatile times. Historically, gold prices have seen the highest increases during periods of high inflation.

During the second wave of COVID-19, in the first week of August 2020, the global market price of gold crossed $2,070 per ounce (31.1034768 grams). In April of that year, when US President Donald Trump imposed retaliatory tariffs, gold prices surged even higher, reaching over $3,400 per ounce.

Currently, the global price of gold has surpassed $3,600 per ounce.

The key reason behind this surge is growing investors’ concern over geopolitical tensions and other global uncertainties. The US Federal Reserve (Fed) may lower interest rates next week, which is also contributing to investors turning toward gold. In the spot market, the price of gold reached $3,654 per ounce at one point.

Australian lender ANZ Group raised its previous forecast for gold prices. According to their prediction, gold could reach $3,800 per ounce by the end of the year, and by next June, the price could exceed $4,000, as reported by Reuters.

Buy or Sell Gold Jewelry? So, the question now is: During this period of instability, is it wise to buy new gold jewelry, or should you consider selling your old pieces? Let’s first consider how much profit you could make by selling old gold jewelry.

Typically, when selling old gold jewelry to a jeweler, they will first weigh it and verify its karat value. Then, they will deduct around 17 per cent from the current value based on the net weight to determine the final payout.

For example, if you purchased 1 bhori (11.664 grams) of 22-karat gold jewelry 10 years ago for around Tk 43,000, and you sell it now, you could receive approximately Tk 154,336. That means your profit per bhori would be Tk 111,336.

For 21-karat or 18-karat gold, the profit would vary accordingly.

ADVICE FOR SELLING GOLD JEWELRY

Experts advise that if you want to sell your gold jewelry, you should ideally return to the same jewelry store where you bought it. And don’t forget to bring the original receipt.

If you go to a different jeweler, your profit might be significantly lower, because they often deduct 22 per cent to 24 per cent from the current value instead of the standard 17 per cent.

In Bangladesh, there are limited opportunities for direct investment in gold. The most accessible method is through buying gold jewelry. However, when purchasing jewelry, an additional 5 per cent VAT and labour charge is added to the price of gold. As a result, buying one bhori (11.664 grams) of jewelry can cost close to Tk 200,000.

Given the current highly volatile market, investing in gold by buying jewelry is considered risky. Still, several jewelers suggest that idle money can be invested in gold jewelry, provided buyers are aware of the risks.

When asked, Dewan Aminul Islam, former general secretary of the Jewelers Association, “Gold prices have reached abnormal levels. Unless absolutely necessary, people are not buying gold jewelry. As a result, the business situation is dire.

In the current climate, selling old gold jewelry can yield a good profit. However, if someone still wishes to buy, they should purchase from reputable, branded stores — that ensures quality and helps avoid future complications regarding gold purity.”

About 15–20 years ago, the gold jewelry business in the country was disorganised. When people tried to melt or resell gold jewelry, there was uncertainty between buyers and sellers about how much pure gold was actually present.

To solve this issue, in 2007, the Jewelers Association made hallmarking mandatory. As a result, sellers now engrave the purity of the gold directly on the jewelry. This information must also be clearly stated on the purchase receipt.

After crafting, the jewelry is typically tested for purity using modern equipment at two designated institutions. However, while well-known, branded jewelers follow these standards, small and medium shops in suburban or rural areas often ignore hallmarking requirements.