Falling gold prices fuel long queues at Bhutan Duty Free Limited outlet in Thimphu

Long queues outside the Bhutan Duty Free Limited outlet in Thimphu have become a common sight in recent weeks. Many people, particularly young Bhutanese, often wait overnight to purchase or redeem gold. While the rush has sparked public curiosity and speculation, the DK Bank says the growing interest is driven by falling gold prices and easier access to digital gold ownership through TER. Dozens of people, most of them young Bhutanese, have been lining up outside the outlet, hoping to redeem TER into physical gold or purchase gold paying in US dollars. Some wait outside from as early as five in the morning, and sometimes even the previous night. The DK bank says gold prices have eased after reaching record highs last year, encouraging many to buy at what they see as a more favourable price. The Bhutan Duty Free Limited trades gold depending on global gold exchange rates. At the same time, TER has changed the way people can own gold by allowing customers to purchase the precious metal in small quantities, trade at any time, and hold their investment digitally without concerns about physical storage and security. Each TER token represents 0.01 grams of 999.9 fine gold. This means a person needs at least 2,000 TER tokens to redeem 20 grams of physical gold. A Bhutanese living in the country can own up to 2200 TER tokens per year, while Bhutanese abroad and foreigners can buy unlimited tokens. According to the DK Bank, the TER platform currently has more than 100,000 registered users, with over 12.1 million tokens in circulation. These digital gold holdings represent 121 kilograms gold stored in secure vaults. The bank said the demand for physical redemption has grown faster than expected since the service began in April this year. It added that customers do not need to queue overnight, as redeemed gold can be collected within 30 days of placing an order. The DK Bank says most customers continue to hold their TER digitally. Once TER is redeemed, the gold cannot be sold back to the bank or Bhutan Duty Free Limited. Whereas digital TER tokens can be sold back to the DK Bank. Meanwhile, responding to speculation that some individuals may be using others’ annual TER entitlement to obtain more gold, the DK Bank has not found any evidence of such activity. It says all accounts are linked to verified identities, and transactions are continuously monitored for suspicious activity. While interest in gold continues to rise among young Bhutanese, DK Bank says customers should view TER as a long-term savings and investment option rather than rushing to convert their digital holdings into physical gold. Kinley Bidha Edited by Phub Gyem The post Falling gold prices fuel long queues at Bhutan Duty Free Limited outlet in Thimphu appeared first on BBSCL.