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Can you buy cheap gold in Bhutan

Bhutan now offers duty-free gold to visitors, who may have been discouraged to visit the destination due to the high sustainable tourism fee.

Can you buy cheap gold in Bhutan?
why cheap gold price in Bhutan

Why is gold so cheap in Bhutan

Bhutan, permits Indian visitors to Phuentsholing or Thimphu to purchase gold tax-free. The Bhutanese government decided to allow tax-free gold on February 21, 2023 "to honour the doubly auspicious day (His Majesty The King's Birthday and Losar, the Bhutanese New Year)" and "to stimulate tourism, 

However, the customs duty rates for gold in Bhutan are revised as provided under Schedule in the Customs Duty Act of Bhutan 2021. Therefore, you may be able to buy cheap gold in Bhutan, but you should also be aware of the customs rules and regulations that apply to your purchase.

why is the price of gold low only here

There are many factors that influence the price of gold in different countries, such as the demand and supply dynamics, the inflation and money supply, the trade and debt imbalances, the central bank activities, the real interest rates, and the geopolitical risks. Some countries may not be able to pay the same price as Bhutan for gold because of these factors. For example,

Some countries may have a lower demand, for gold due to cultural or religious reasons, or a higher supply of gold due to domestic production or imports. This may lead to a lower price of gold in these countries compared to Bhutan.

Some countries may have a higher inflation, rate or a weaker currency than Bhutan, which may erode the purchasing power of their money and make gold more expensive for them. Alternatively, some countries may have a lower inflation rate or a stronger currency than Bhutan, which may increase the purchasing power of their money and make gold cheaper for them.

Some countries may have a large trade deficit,

or a high external debt with respect to Bhutan, which may put downward pressure on their exchange rate and make gold more costly for them. Conversely, some countries may have a large trade surplus or a low external debt with respect to Bhutan, which may put upward pressure on their exchange rate and make gold more affordable for them.

Some countries may have a more hawkish, or dovish central bank policy than Bhutan, which may affect the interest rate and the money supply in their economy and influence the price of gold. For instance, a higher interest rate or a tighter money supply may reduce the demand for gold as an alternative asset and lower its price. A lower interest rate or a looser money supply may increase the demand for gold as an inflation hedge and raise its price.

Some countries may have a higher or lower real interest, rate than Bhutan, which is the nominal interest rate minus the inflation rate. A higher real interest rate may discourage investors from holding gold as it has no yield and lower its price. A lower real interest rate may encourage investors to hold gold as it preserves its value and increase its price.

Some countries may face more or less geopolitical risks than Bhutan, such as wars, conflicts, sanctions, political instability, or social unrest. These risks may create uncertainty and fear among investors and drive up the demand for gold as a safe haven asset and boost its price. These risks may also disrupt the supply chain or the production of gold and affect its availability and price.

These are some of the possible reasons why other countries can't pay the same price as Bhutan for gold. However, these factors are not constant and may change over time depending on the economic and political conditions in each country. Therefore, the price of gold in different countries may also fluctuate accordingly.


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