The Academy Gold Refinery has commenced production of gold bars with an updated gram weight, according to the Yangon Region Gold Entrepreneurs Association.
The Mineral (Gold) Reference Price Committee has set the gold weight standard at 16.329325 grams per tical. Gold bars produced under this new standard have been available in the market since February 12.
Previously, the standard weight was 16.606 grams per tical. The adjustment in gram weight effectively increases the value of one tical of gold by more than two yway.(Tical and Yway are the Myanmar gold measurement units, Kattha (Ticals) is equal to 16.3293 g, while one Yway is equal to 136.078 mg)
U Myo Myint, chairman of the Yangon Region Gold Entrepreneurs Association (YGEA), noted that the new weight standard has boosted profits for gold shops.
"Our business relies on making money from gold transactions. Simply following price increases is not profitable," he explained.
Currently, a seven percent profit margin is factored into the daily gold price, U Myo Myint added.
The daily gold price is determined based on the global gold price and the dollar exchange rate. It is calculated by multiplying one ounce of gold by the exchange rate set by the Central Bank of Myanmar and dividing the result by 1.9047, he said.
