Latviski English По-русски
Saturday 19.08.2017 | Name days: Melānija, Imanta

Latvia turns into gold exporting country

(No Ratings Yet)

Lombards and jewelry makers are purchasing gold, in order to sell it abroad, that way turning Latvia from a  gold importing country into a gold exporting one.

People who used to wear rings, earrings and chainlets are in desperate need of money, whereas in other parts of the world people want the exact opposite – to turn their free assets into gold.

This coincidence of circumstances has made the owners of lombards and jewelery makers instead of the signboard «selling gold» hang out the opposite – «buying gold», reports the newspaper Latvijas Avīze.

Since the beginning of 21th century, the starting price of gold in world market has been increasing all the time and along with them – Latvian gold purchasers’ offered sum of money.

«For items of gold that have been bought a few years ago for price of 500 dollars per ounce or 11-12 lats per gram, now can be purchased for the same money. Moreover, they are no longer sold as jewelry, but as inferior gold scrap,» says the head of Latvian Alloy Bureau Peteris Brangulis (Pēteris Brangulis).

This situation is beneficial for gold trading enterprises to whom purchase of precious metals has become a business that allows to survive, because the domestic demand for gold has declined by 60%, informs Brangulis.

Once the exported gold scrap has reached foreign refineries, mostly it is transformed into investment gold – bars and coins, after which the world demand continues to grow, explains gold investment trading company’s Goldinvest Asset Management owner Peter Avotins (Pēteris Avotiņš).

It is cheaper to export gold outside Latvia, because exports are not subject to value added tax, informs gold investment company’s SIA Tavex Board member Evita Grundberga.

The advertisements of lombards promising to lend money against gold or to buy it, are colourful and impressive, although the lombards mostly are not willing to reveal their further actions with the gold.

No matter how many intermediate chains the purchased gold would go through, in the end it still goes to Switzerland and Australia, considers the manager of Barona Lombards Mareks Palivoda(Mareks Paļivoda). «We do not transport gold abroad ourselves, we are too small for that; however, Lithuainians come to pick up gold from us. They enter every day and ask for gold.» Approximately a year ago gold was much cheaper in Latvia than in Lithuania; however now, if there is a difference – it is very small, tells Palivoda. Also gold collectors from Poland tend to come to Latvia in quest for it. Some lombards resell it to gold investment companies Tavex and Goldinvest Asset Management. These are not large quantities of gold, though.

As in other fields of economics, also the processes in gold market are cyclical. The boom of purchasing gold in Latvia could last approximately for a year more, «until the moment those who have financial problems will have solved them or, the other way round, in dealing with difficulties they will have sold all of the gold and there will not be what to purchase. Despite this, there will always be gold collectors,» states Brangulis.

Leave a reply

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Most read

Most commented

Newest comments