Kyrgyzstan has been drawn into a global gold storm. Following the sharpest collapse in precious metals prices in recent years, residents have rushed en masse to Kyrgyzaltyn store to sell their gold bullion bars in an effort to avoid further losses. Over the weekend, the line stretched to more than 100 people – an influx seen for the first time since the launch of the gold bullion sales program for the public.
According to eyewitnesses, people arrived early to secure a place in line, with some even coming in groups. The panic was triggered by a steep drop in global gold and silver prices, which analysts described as the largest collapse of the decade.
International financial platforms report that the global precious metals market has lost more than $7 trillion in capitalization over just a few trading sessions. This has been driven by a wave of rapid futures sell-offs, profit-taking by major funds, and a strengthening U.S. dollar amid hawkish statements from financial regulators.
The price decline quickly reached Kyrgyzstan as well.
As of February 2, official prices for standardized gold bullion bars were as follows: a one-gram bar was being bought at 15,216.50 soms and sold at 15,429.50 soms; a two-gram bar is being bought at 29,197.50 soms and sold at 29,577 soms.
Against this backdrop, many bullion holders decided to “give up gold” early, fearing further declines. Store employees note that customer traffic surged severalfold in just one day. Some customers openly say they prefer to sell their bullion now rather than face even greater losses in a week.
Financial analysts attribute the situation to a combination of global factors: a worldwide correction following record price highs, market jitters over statements by the U.S. Federal Reserve, and massive speculative trades – a classic “domino effect”.
For now, experts agree on one thing: volatility is likely to persist for at least several more weeks, meaning Kyrgyzstanis should closely monitor market trends. (24.kg)