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GOLD PRICE |
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GOLD PRICE |
On The Surge As depositors withdraw money from the bank, they start investing in gold As soon as some opposition political parties started demanding ceilings on private property alongside the those on land, big depositors in the capital and Terai districts sensed something wrong. As a panic reaction, some started to withdraw big amounts of money from the banks to be sent abroad. Those who couldn't send the money in this way decided to invest in gold. Consequently, there has been an unprecedented surge in gold demand. According to President of Nepal Gold Silver Traders' Association, Tej Ratna Shakya, average daily demand for the precious metal has doubled to 60 kg over the last 10 days. Gold price has also soared to Rs 7,200 per 10 gram despite a decline in international markets, he said. "This is a temporary phenomenon as people are buying gold due to lack other lucrative area for investment," said a gold trader. Both the Finance Ministry and Nepal Rastra Bank have tried hard to reassure depositors. The ministry clarified that the government does not have any plan to impose controls on foreign exchange or fix ceilings on bank deposits and property. In a statement issued Monday, the ministry said reports that deposits have been withdrawn in extraordinary amounts from banks were false. The ministry called upon entrepreneurs, businessmen and the general public not to come under the influence of such rumors. It's difficult to predict how long it will take to restore depositors' confidence, especially when politicians continue politicking on such sensitive issues as the financial market. |
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