Gold Purchases by The People of Kazakhstan As Impact of Gold Regulation

Kazakhstan with its capital Astana, has a lot of oil and gold. This country is caught up in an oil-fueled public works construction boom in 2004 (according to the U.S. government’s Energy Information Agency, the country has proven oil reserves of between 9 billion and 17.6 billion barrels) and along with kyrgyzstan uzbekistan, and Rusia, as a former Uni Sovyet countries, this country also being  a gold producing country.

Right now, results of new regulation that let citizens of Kazakhstan to be able to buy gold from a wider variety of sources six month ago has occurs. Citizens can trade gold at market, and not only at national and commercial banks. The gold price is also not being set any longer.

According to caspionet.kz, there is a continuously buying transaction of gold from Kazakhstani people with volume reach 12 to 15 kilograms of physical gold on a monthly basis.

According to specialists’ projections, the consumption volume of this eternal metal will grow by 300 kilograms in the republic within the framework of the current legislation. The demand for metals on the whole is being formed in Kazakhstan. As the market’s demand for gold is satisfied, market participants will also offering clients to buy platinum, silver and palladium.

Since the value added tax (VAT) is cancelled, the sales volume will increase 2 tons in the next 3 years, which is being strived for by local market participants.

“We have a contract which reads that if you bought some gold you have a right to return it to us at a price which is formed on a daily basis. Our clients can store it in Switzerland or Dubai as we’ve organized this infrastructure. It’s relatively inexpensive; however, it is more attractive for clients as the good’s cost price reduces considerably” Nasim Aliyev, director general says.

As a strategy to profit maximality of gold purchasing in relation with no VAT, many Kazakhstani people make contracts for gold purchase here but tend to keep it outside the country. This means that gold bars do not cross the border.

If a purchase comes from foreign countries apart from VAT worth 12%, a client has to pay import duty which makes up some 20% plus production and delivery costs. If gold is delivered from Russia or Belarus, the customer pays only for the good itself and the tax. Thus, basing on the results of yesterday’s auctions, the price of 1 gram of pure Russian gold was formed on the level of 7.5 thousand tenge. The cost of metal brought from countries which are not members of the Customs Union may reach 8.5 thousand per one gram.

As Nasim Aliyev says
“For example, 60 tons of physical gold was purchased in Germany last year. In comparison with Kazakhstan, all in all about 1 tons of it was sold there. For example, about 9 tons was sold in Russia even with an 18% VAT rate. However, its population is much bigger. And 30 tons were sold in Ukraine as there’s no VAT there.”

According to experts, the demand for metals on the whole is being formed in Kazakhstan. As the market’s demand for gold is satisfied, market participants will start offering clients to buy platinum, silver and palladium.

February 20, 2010 - Posted by | Buying Gold ?, News of Gold

1 Comment »

  1. […] original here: Gold Purchases by The People of Kazakhstan As Impact of Gold … tags: border, bullion-vault, country, cross-the-border, dollar, gold-purchase, kazakhstani, […]

    Pingback by Gold Purchases by The People of Kazakhstan As Impact of Gold … Gold just to Me | February 23, 2010 | Reply


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