#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Gold price may rocket to 19,000 THB/1-baht weight

## StrontiumDog

Gold price may rocket to 19,000 THB/1-baht weight : National News Bureau of Thailand

*Gold price may rocket to 19,000 THB/1-baht weight*

 

BANGKOK,  26 August 2010 (NNT)  Domestic gold price is likely to reach  19,000  THB per one-baht weight due to the current economic conditions  of both  US and European countries, according to Gold Traders  Association  President Jitti Tangsitthibhakdi. 

Mr Jitti said the gold price in the global market this period would   still be fluctuating since investment in gold would remain attractive   for investors, noting that it might make a record above 1,300 USD per   ounce.  

Nevertheless, the president added that the current Thai Baht   appreciation would help slow down the price surge, elaborating that the   gold price would reduce by 50-60 THB for every 10 Satang increase in   currency. 

Mr Jitti hence urged people to hold the precious metal for short-term   profits; otherwise, they might suffer from the price fluctuation in a   long run.  

The current buying rate of gold bullion is quoted at 18,350 THB per   one-baht weight and the selling rate at 18,450 THB per one-baht weight. 

Regarding recent news reports about robberies in dozens of gold shops,   the president suggested that all retail gold shop owners should insure   their shops against the robberies in order to lessen their losses. He   deemed this mode of prevention effective than others.

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## socal

It could easily double in the next couple years.

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## Butterfly

in the "greater fool theory", it could indeed. Actually, it could tripe within the year

it used to be 2,000 THB for 1 baht, and that was less than 10 years ago

also keep in mind that Gold in Thailand is regarded as a long term of investment along with empty condos for most rich Thais. So it's no surprise that they would heavily invest into such assets as soon as they converted their profit in USD or other foreign currency into THB

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## aging one

> it used to be 2,000 THB for 1 baht, and that was less than 10 years ago


Thats too low butterfly. I was paying 4500 20 years ago when it was marriage time.

2000 baht for 15 grams of gold at 37 baht to the dollar would be what 100 to 120 and ounce?

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## sabang

Smart people are selling gold.

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## Bower

What taxes are there, if any , on buying and selling gold in Thailand ?

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## sabang

None- it's chinese controlled.

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## socal

> in the "greater fool theory", it could indeed. Actually, it could tripe within the year
> 
> it used to be 2,000 THB for 1 baht, and that was less than 10 years ago
> 
> also keep in mind that Gold in Thailand is regarded as a long term of investment along with empty condos for most rich Thais. So it's no surprise that they would heavily invest into such assets as soon as they converted their profit in USD or other foreign currency into THB


If you have never studied macro economics and Austrian economics then you know nothing about gold. 

US treasuries are the bubble, not gold. 

Just when the sheeple thought they had this bubble thing figured out, along come Ben Bernanke with the fiat bubble.

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## socal

> Smart people are selling gold.


Like 3 of the biggest hedge fund superstars in the world today ? Every one of these guys have huge gold positions that they have added to as early as last month. 

Buyers

David Eihorn of Greenlight Capital- Famous for shorting Bear Sterns and Lehman Bros. in 08.

John Paulson of Paulson & co.- Famous for shorting US housing in 07

George Soros of Soros LCC- Famous for breaking the bank of England

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## Bower

[quote=socal;If you have never studied macro economics and Austrian economics then you know nothing about gold. 

US treasuries are the bubble, not gold. 

Just when the sheeple thought they had this bubble thing figured out, along come Ben Bernanke with the fiat bubble.[/quote]


I dont agree with some of BF's posts but i have to say that, I, as a dealer in PM's for 30 years have never heard/read so much repetitive clap trap.
 There is no such thing as a long term investor in gold or any other metal. We all watch the market hourly and would sell all at the drop of a hat. It matters not what is written in books. Get out there and risk your own money and see how easy it is to watch your 'investment' shrink, try then to settle your nerves with 'its ok i am in for the long haul'. Gold will rise now for 5-6 weeks i feel because of the Western jewellers increasing their Christmas stock and the onset of the marriage season in India and constant demand by  growing wealth in China. China's property bubble is the biggest threat to the gold price, i feel. I dont read books about the world economy,i read the market to-day and react accordingly. If people want to hold some of their wealth in gold, buy coins, as i have mentioned in other threads. You then have some comfort in there numastic value...6% min premium.
I have been dealing in gold for a long time with my own money and my family are not hungry and they all have a pair of shoes !......

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## The Master Cool

> Gold price may rocket to 19,000 THB/1-baht weight


Hardly rocket, it was there (or just about - 50 or 100b short 2 months ago), and has been middle 18,000s for a while.




> according to Gold Traders  Association  President Jitti  Tangsitthibhakdi.


Would this man gain by telling us all about how its going to rocket I wonder...

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## BobR

There is something almost psychotic about some of these people who seem to think they are going to live fat and happy clutching their little bag of shinny metal after everything else collapses and everyone else in the World is starving.  They remind me if the survivalist gun nuts back home.

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## socal

[quote=Bower;1537874]


> I dont agree with some of BF's posts but i have to say that, I, as a dealer in PM's for 30 years have never heard/read so much repetitive clap trap.
>  There is no such thing as a long term investor in gold or any other metal. We all watch the market hourly and would sell all at the drop of a hat. It matters not what is written in books. Get out there and risk your own money and see how easy it is to watch your 'investment' shrink, try then to settle your nerves with 'its ok i am in for the long haul'. Gold will rise now for 5-6 weeks i feel because of the Western jewellers increasing their Christmas stock and the onset of the marriage season in India and constant demand by  growing wealth in China. China's property bubble is the biggest threat to the gold price, i feel. I dont read books about the world economy,i read the market to-day and react accordingly. If people want to hold some of their wealth in gold, buy coins, as i have mentioned in other threads. You then have some comfort in there numastic value...6% min premium.
> I have been dealing in gold for a long time with my own money and my family are not hungry and they all have a pair of shoes !......


So US treasuries have been in a bull market for 30 years. A ten year auction just hit a record low yield.(bond prices are the inverse of the yield)

Like I said before, the unmolested low for gold in 2000 was not $255. It was only the announced sales and dumping of the UK gold by Gordon Brown (to bail out the LBMA)that brought the price that low.

$500 gold to $1200 gold over a ten year period where derivative markets expanded ten fold and where the Fed balance sheet doubled, is not an over heated market.

^also I forgot to mention, that was also a ten year period where central banks all over the world where selling gold and mine production was declining. Central banks just started buying gold.

Gold is cheap and treasuries reek of a bubble. I have been buying gold all summer and I have the receipts to prove it.

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## socal

> Gold price may rocket to 19,000 THB/1-baht weight
> 			
> 		
> 
> Hardly rocket, it was there (or just about - 50 or 100b short 2 months ago), and has been middle 18,000s for a while.
> 
> 
> 
> 
> ...


Back to the original question:  should we buy now, or wait for a pullback? 
The answer comes when you look at the big picture. If you pull up a 9-year chart of gold, what sticks out is that the price is near its all-time nominal high. One could be forgiven for thinking it looks toppy or at least ripe for a pullback. But I assert that the highs for gold have yet to be charted.

What will a gold chart look like  after adding five years to it?

When projecting gold's potential price peak, there are many ways to measure it. Conservatively, gold reaching its inflation-adjusted 1980 high would have it topping around $2,400 an ounce. More radically, if the U.S. tried to cover its cumulative foreign trade deficit with its current gold holdings, gold would need to hit about $32,000/oz.

Let's take something more middle of the road, and apply the same trough-to-peak percentage advance gold underwent in the 1970s. (I think there's a greater than 50/50 chance it does more than that, given the precarious nature of the U.S. dollar.) Gold rose from $35 in 1970 to $850 in 1980, a factor of 24.28. Our price bottomed in 2001 at $255.95; multiply that by 24.28 and you get a gold price of $6,214 per ounce.

Sound too high? Well, would it feel high if you had to pay $12.50 for a Big Mac? At $3.39 today at my local McDonald's, that's about what it would cost ten years from now if we get the same rate of inflation we had in the late 1970s.


That was a cut and paste job but let me tell you, gold is cheap.


You have  a choice, you can side with Bower, butterfly and Sabang on Teakdoor.com or you can side with the richest sovereign wealth funds in the world, the hedge fund superstars of the world and the central banks of the world who are all buying gold as early as last week.

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## socal

> There is something almost psychotic about some of these people who seem to think they are going to live fat and happy clutching their little bag of shinny metal after everything else collapses and everyone else in the World is starving.  They remind me if the survivalist gun nuts back home.


If you had 2 million bucks to invest today, where would you put it ?   :mid:

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## Butterfly

> Thats too low butterfly. I was paying 4500 20 years ago when it was marriage time.
> 
> 2000 baht for 15 grams of gold at 37 baht to the dollar would be what 100 to 120 and ounce?


I clearly remember in the late 90s seeing Gold in Thai shops being sold for 2,000 to 2,500 THB, might have been shortly before 1997




> David Eihorn of Greenlight Capital- Famous for shorting Bear Sterns and Lehman Bros. in 08.


gee, what a genius, everyone was  :Roll Eyes (Sarcastic): 




> John Paulson of Paulson & co.- Famous for shorting US housing in 07


isn't that firm being questioned by the SEC over an allege deal over them shorting those securities while their investors were actually pushed to buy ? I guess when you have a market of "buyers", it's easy to sell  :Roll Eyes (Sarcastic): 




> George Soros of Soros LCC- Famous for breaking the bank of England


that was over 20 years ago  :Roll Eyes (Sarcastic): 




> There is something almost psychotic about some of these people who seem to think they are going to live fat and happy clutching their little bag of shinny metal after everything else collapses and everyone else in the World is starving. They remind me if the survivalist gun nuts back home.


right on, exactly. I bet socal is also a gun nut, since he is American, wouldn't surprise me. There is a strong link between those catastrophic scenario and those psychotic nutters. They should invest in a few pills first before buying gold and guns.

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## Butterfly

> If you have never studied macro economics and Austrian economics then you know nothing about gold.
> 
> US treasuries are the bubble, not gold.


 :rofl: 

we went through this already, you are still barking at the wrong tree and make your investment decisions on the wrong benchmark. 

This is going to end in pain  :Smile:

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## Butterfly

> You have a choice, you can side with Bower, butterfly and Sabang on Teakdoor.com or you can side with the richest sovereign wealth funds in the world, the hedge fund superstars of the world and the central banks of the world who are all buying gold as early as last week.


oh boy  :Roll Eyes (Sarcastic):

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## socal

> Originally Posted by socal
> 
> You have a choice, you can side with Bower, butterfly and Sabang on Teakdoor.com or you can side with the richest sovereign wealth funds in the world, the hedge fund superstars of the world and the central banks of the world who are all buying gold as early as last week.
> 
> 
> oh boy


oh boy what ? Are you aware that if the US trade deficit with China was to be settled in todays gold price ($1200 pissy assed dollars an oz.) it would take 55,000 tons ?

The US and the European unions total gold hoard is 18,000 tons. So where is the rest of the gold going to come from ? Nowhere, the price in dollars just has to rise to solve China's problem.

But you think gold is in a bubble, haha.

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## Butterfly

hint: Gold is not a standard of measurement for economic activity. 

We do not need gold to conduct general business, may it be International or local business. When was the last time someone asked you to be paid in Gold ?

is that easier to understand ?  :Roll Eyes (Sarcastic): 

this reminds me of the gun loons who think that freedom is measured by how many guns you own  :Roll Eyes (Sarcastic):

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## Nostradamus

> There is something almost psychotic about some of these people who seem to think they are going to live fat and happy clutching their little bag of shinny metal after everything else collapses and everyone else in the World is starving. They remind me if the survivalist gun nuts back home.


It worked for many Khmers trapped in Cambodia during the Khmer Rouge regime.

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## socal

> hint: Gold is not a standard of measurement for economic activity. 
> 
> We do not need gold to conduct general business, may it be International or local business. When was the last time someone asked you to be paid in Gold ?
> 
> is that easier to understand ? 
> 
> this reminds me of the gun loons who think that freedom is measured by how many guns you own


Obviously you know nothing about central banking and I dont have time to give you a lesson.  :Roll Eyes (Sarcastic):

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## socal

> Originally Posted by BobR
> 
> There is something almost psychotic about some of these people who seem to think they are going to live fat and happy clutching their little bag of shinny metal after everything else collapses and everyone else in the World is starving. They remind me if the survivalist gun nuts back home.
> 
> 
> It worked for many Khmers trapped in Cambodia during the Khmer Rouge regime.


and what does that have to do with the fact that gold is a good investment right now ?

I never said anything about civil collapse.

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## Mid

_Thailand's gold trading price hits record high of Bt21,050 per one  baht weight of ornamental gold (15.244 grams); Gold bars now Bt20,650

_Thailand's gold trading price hits record high of Bt21,050 per one baht weight of ornamental gold

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## OhOh

> they are going to live fat and happy clutching their little bag of shinny metal


Make a crown out of it and be a King, or for some a real queen.

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## socal

> Originally Posted by socal
> 
>  they are going to live fat and happy clutching their little bag of shinny metal
> 
> 
> Make a crown out of it and be a King, or for some a real queen.


Don't worry, people like you will never have the problem of trying to protect a fortune.  Work to live another day, just like an animal.

Anyway I stick to my position at the start of the thread, gold could easily double from here, gold should easily double from here.

There will be the usual corrections, maybe even a 50% correction but that doesn't matter for people that understand.

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## Mid

*Gold prices in Thailand hit new record high*
วันเสาร์ ที่ 16 เม.ย. 2554 





*BANGKOK,* April 16 -- Prices of gold ornaments and gold bars hit  a new record high in Thailand early Saturday, due to sharp increase in  global gold prices resulting from worries over continued rising oil  prices and inflationary pressure in overseas, said Jitti  Tangsitthiphakdi, chairman of the Gold Traders Association.

 Mr Jitti said his association announced this morning a buying price of  Bt20,693.40 per baht-weight (15.16 grammes) for gold ornaments, and  selling price of Bt21,500.

 The buying price of gold bar was at Bt21,000 per bath-weight and the selling price at Bt21,100 per baht-weight, he said.

 Gold prices in Thailand have been on the increase since Tuesday, Mr Jitti said.

 He said local gold prices have hit an all-time high after gold prices  closed at a new record high in New York last night, closing at US$1,486  an ounce, up 0.9 per cent, on the Comex (Commodity Exchange) division of  the New York Mercantile Exchange, for June contracts.  Prices moved  between US$1,472.2  1,488.6 per ounce, which was highest during  intra-day trading.

 Rising inflation overseas due to steady increase in oil prices  stimulated prospective investors to buy gold with an aim to hedge risks.  Public debt crises coupled with economic uncertainty in Euro zone were  other factors to buying of gold.

 However, Mr Jitti admitted that gold prices which hit new high at a  rapid pace could be partly a result of pure speculation by several funds  and a transfer of capital to invest in gold, where prices do not  fluctuate along with inflation.

 Most gold shops in Thailand are still closed to celebrate Songkran  festival or Thailands traditional New Year. They are expected to resume  normal business operations on Monday.

mcot.net

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## parryhandy

A Golden Tipping Point: University of Texas Takes Delivery Of $1 Billion In Physical Gold

http://www.zerohedge.com/article/gol...-physical-gold




> Tipping points are funny: for years, decades, even centuries, the conditions for an event to occur may be ripe yet nothing happens. Then, in an instant, a shift occurs, whether its is due a change in conventional wisdom, due to an exogenous event or due to something completely inexplicable. That event, colloquially called a black swan in recent years, changes the prevalent perception of reality in a moment. This past week, we were seeing the effect of a tipping point in process, with gold prices rising to new all time highs day after day, and the price of silver literally moving in a parabolic fashion. What was missing was the cause. We now know what it is: per Bloomberg: "The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board." And so, the game theory of a nearly 100 year old system of monetary exchange has seen its first defector, but most certainly not last. With an entity as large as the University of Texas calling the bluff of the Comex, the Chairman, and fiat in general in roughly that order, virtually every other asset manager is now sure to follow, considering there is not nearly enough physical gold to satisfy all paper gold in existence by a factor of about 100x. The proverbial Nash equilibrium has just been broken.

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## Mid

*Gold tops $1,500/oz for first time*
20/04/2011

 The price of gold topped US$1,500 an ounce for  the first time on Wednesday as a weakened dollar plus fears over high  inflation and countries' debt attracted investors to the safehaven  precious metal.

 
_The price of gold struck a record high just short of $1,500 Monday  after ratings agency Standard & Poor's revised its outlook on US  sovereign debt to "negative" from "stable."_

 Gold reached $1,502.32 an ounce at 0705 GMT. In later trading on the  London Bullion Market, gold dipped back under the landmark barrier to  stand at $1,499.32.

 Sister metal silver meanwhile reached a 31-year high of $44.48 an ounce.
 "Gold remains comfortably underpinned with short-term inflation  pressures and economic woes triggering some fresh safe haven inflows,"  said Andrey Kryuchenkov, commodities analyst at Russian financial group  VTB Capital.

 The metal is seen as a safe store of value in troubled economic times.
 Gold began its surge towards $1,500 on Monday after ratings agency  Standard & Poor's revised its outlook on US sovereign debt to  "negative" from "stable."

 S&P's move challenged Washington's gold-star "AAA"-rated standard  as it warned that politicians seemed unable to agree a plan to reduce a  huge budget deficit, which is running at around 10 percent of gross  domestic product.

 The downgrade had also sent global share prices tumbling on Monday,  while it came amid growing concerns over global inflation, with China,  India and the eurozone struggling to control prices.

 Metals consultancy GFMS last week forecast that the gold price would  soar past $1,600 this year, driven primarily by fears over high  inflation.

 Kryuchenkov added: Gold "shot up after S&P downgraded the US  sovereign debt outlook to negative. The move came on top of existing  economic woes over resurfacing debt troubles in the eurozone."

 Gold prices have risen by six percent since the start of the year,  breaking a series of record highs along the way. They breached $1,000  for the first time in March, 2008.

 "Gold will remain well bid as long as the ongoing debt and inflation  worries persist," Ian O'Sullivan, Spread Co trading group analyst told  AFP.

 Top EU and IMF officials working on a debt rescue for Portugal worth  some 80 billion euros on Tuesday met leading unions and politicians.

 The country, which faces a general election on June 5, is eight weeks away from a risk of defaulting on its debt.

bangkokpost.com

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## Mid

> A Golden Tipping Point:


Interesting Stuff , thanxs  :Smile:

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## OhOh

> took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault


Why have they not moved it to a Texas bank?

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