02 March 2011
Unreal increase in the dollar parity rate is the main cause of the bubble in gold and coin market, said a banking expert on Tuesday.
The rise in gold and coin prices is due to the remarkable difference of hard currency exchange rate between official and free markets, added Farid Ziaolmolki, Fars News Agency reported.
"When the official hard currency exchange rate is 10,330 rials but forex is traded in the free market at 11,400 rials estimated gold prices become unreal," he said.
He went on to refer to the global parity rate of the dollar and selling price of each ounce of gold being $1414 in the international market.
"The real gold price is calculated by dividing global market price by 4 and then multiplying it by the official dollar parity rate. The resultant figure is the price of gold in domestic exchanges," he noted.
Selling gold ingots by Bank Kargoshaei can decrease the governing gold price, he said, adding gold makers can buy ingots and make new jewelry and hence help decrease price of gold.
Given the rise in price of gold in the local market, on Monday Central Bank of Iran (CBI) announced it will start sale of gold ingots today in order to create a balance in the market.
The gold price climbed $8.19 to $1,419.31 Tuesday as the price of gold set its sights on a new all-time high. After modest $2.80 rise, the gold price continued to march higher as political and economic turmoil in Africa and the Middle East boosted the price of gold. With Tuesday's gain, the gold price is now within 0.8 percent of its $1,432.50 record high. Silver rallied alongside the gold price, to a new 31-year high of $34.485 per ounce, Goldalert reported.
Unreal increase in the dollar parity rate is the main cause of the bubble in gold and coin market, said a banking expert on Tuesday.
The rise in gold and coin prices is due to the remarkable difference of hard currency exchange rate between official and free markets, added Farid Ziaolmolki, Fars News Agency reported.
"When the official hard currency exchange rate is 10,330 rials but forex is traded in the free market at 11,400 rials estimated gold prices become unreal," he said.
He went on to refer to the global parity rate of the dollar and selling price of each ounce of gold being $1414 in the international market.
"The real gold price is calculated by dividing global market price by 4 and then multiplying it by the official dollar parity rate. The resultant figure is the price of gold in domestic exchanges," he noted.
Selling gold ingots by Bank Kargoshaei can decrease the governing gold price, he said, adding gold makers can buy ingots and make new jewelry and hence help decrease price of gold.
Given the rise in price of gold in the local market, on Monday Central Bank of Iran (CBI) announced it will start sale of gold ingots today in order to create a balance in the market.
The gold price climbed $8.19 to $1,419.31 Tuesday as the price of gold set its sights on a new all-time high. After modest $2.80 rise, the gold price continued to march higher as political and economic turmoil in Africa and the Middle East boosted the price of gold. With Tuesday's gain, the gold price is now within 0.8 percent of its $1,432.50 record high. Silver rallied alongside the gold price, to a new 31-year high of $34.485 per ounce, Goldalert reported.
© Iran Daily 2011
