Junta arrests top Yangon gold traders over alleged price manipulation

Three prominent gold traders who also hold senior positions in the Yangon Region Gold Dealer Association were arrested for allegedly hoarding gold bars and selling them at inflated prices, according to a junta-controlled newspaper on February 6. Those arrested include association chairman Myo Myint of Thein Than Gold and Jewellery, vice-chairman Myo Thu Win of Academy Gold, and secretary Nay Myo Htet of Shwe Sin Academy Gold. Gold prices have surged since the start of the year, with 24K gold topping 10 million kyat ($2,506 USD), per tical (16.33 grams), prompting the junta to detain the shop owners. Regime media said the men purchased large quantities of gold bars—70 ticals, 970 ticals, and 319 ticals respectively, before reselling them at inflated prices in breach of junta trading directives. The arrests sent shockwaves through Yangon’s gold market and briefly slowed trading, a local shop owner told Myanmar Now. “Everyone is quiet and afraid now,” the gold trader said, requesting anonymity. “Even the top players were targeted, and others were scared too. They only trade small amounts and follow the set rates. Closing shops would draw too much attention, so they just go along to stay safe.”The trader pointed out that the arrests were the main reason for the slowdown, with dealers linked to the detained businessmen feeling especially uneasy, adding that smaller operators were now even more fearful. He said the junta’s published figures on the seized gold purchases were likely accurate and could underestimate the true volumes involved.Prices of gold, the US dollar, and general goods have surged sharply as a result of the 2021 coup, international sanctions, and economic mismanagement. In response, the junta has attempted to control prices by imposing fixed rates below the market value. The junta has also stepped up inspections of gold shops, while the Yangon Region Gold Association has used its social media channels to urge members to comply with official rates and directives. As of February 6, the junta pegged 1 tical of 24K gold at 6.9 million kyat ($1,729 USD).At present, global gold prices have climbed to around 5,000 USD per ounce. In Myanmar, gold prices are rising due to both the surge in international rates and inflation under the junta’s rule, an economist near the Thai border, who wished to remain anonymous, told Myanmar Now.“In a market, people buy at a certain price and sell by adding a profit. This is normal. Traders will continue buying and selling, but only if they can earn a profit. Criminalising profit and forcing prices down will effectively push the entire market underground,” he said.The junta has repeatedly detained gold traders, accusing them of destabilising gold prices. In June 2024, the junta arrested 21 gold entrepreneurs. On January 29 2021, the local gold price was 1,320,000 kyat (992 USD) per tical. Five years later, it has risen more than seven times that amount.“Arrests won’t lower the gold price,” the economist said. “If anything, they’ll push the gold into the black market. In other words, this just drives trading underground.”

Junta arrests top Yangon gold traders over alleged price manipulation

Economists warn junta price controls and detentions are pushing Myanmar’s gold trade underground rather than lowering prices

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