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  1. #1
    Thailand Expat misskit's Avatar
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    Gold shops face liquidity crisis as rising price tempts people to cash in

    The price of gold continues its rising trend and could soar beyond the Bt27,100 mark it hit eight years ago, Gold Traders Association president Jitti Tangsitphakdi said.


    “As the global economy has slowed down, the demand for gold has risen because people view it as a safer asset than cash,” he said. “Gold price this year could rise beyond Bt27,000 per baht weight, which will be a new high in eight years. However if the Covid-19 situation improves, the global gold price could gradually come down.”


    As for the domestic market, the gold price has risen since New Year by Bt4,500 to Bt6,000 per baht weight, causing gold investors to sell their bars and jewellery for profit.

    “Another factor is that the Covid-19 situation in Thailand has driven some people to reserve cash for daily needs instead of gold,” he added. “Many gold shops are suffering due to cash-flow problems as people are rushing to sell their gold but not many people are buying,” said Jitti. “Besides, international traders have not been able to export gold due to a shutdown of airlines and overseas markets.”

    “We advise investors to postpone the selling of gold at the moment to allow time for gold shops to restore their cash flow,” he added.

    “If the situation persists, some gold shops may have to temporarily shutdown, which will affect several employees in gold-related businesses.”


    As of Tuesday, the purchase price of gold bars was Bt25,900 per baht weight and selling price was Bt26,100, while buying price for gold ornaments was Bt25,574.92 and selling price Bt26,750. This marks a 21.11 per cent jump, or Bt4,550, from December 31, 2019 when selling price of a gold bar was Bt21,550.

    Gold shops face liquidity crisis as rising price tempts people to cash in

  2. #2
    The Fool on the Hill bowie's Avatar
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    Well, can't speak for them but, the long line of folk waiting to sell their gold on tonights news blurb didn't look like suit and tie investors, they looked more like folk selling gold for cash to buy food and pay bills.

    Seems many, many, many folk are still waiting on their THB 5k/mo. stipend.

    One BIL did report he received his today. Course seriously doubt he has ANY gold to sell. Desperate times for the many recently unemployed.

  3. #3
    Thailand Expat helge's Avatar
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    Quote Originally Posted by misskit View Post
    We advise investors to postpone the selling of gold at the moment to allow time for gold shops to restore their cash flow,” he added.
    I've seen quite a few goldshops next to a bank

  4. #4
    I'm in Jail

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    There's a lot of dosh gets washed through those lovely Red coloured shoppes. Told the Mrs to pop along and liberate a few bits, she doesn't need the money just sell high time......and see how it goes. Tis sad though for those who are liquidating assets they will likely never be able to buy back - shamefully its those at the bottom in the shit and waiting for a handout ...as usual.

  5. #5
    Thailand Expat helge's Avatar
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    Quote Originally Posted by NamPikToot View Post
    Tis sad though for those who are liquidating assets they will likely never be able to buy back
    For me gold sums up the thai personality: Face
    Quote Originally Posted by NamPikToot View Post
    ack - shamefully its those at the bottom in the shit and waiting for a handout ...as usual.
    Oh yes

  6. #6
    Thailand Expat Pragmatic's Avatar
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    Quote Originally Posted by misskit View Post
    “Many gold shops are suffering due to cash-flow problems as people are rushing to sell their gold but not many people are buying,” said Jitti.
    Hang on while I get my violin out.

  7. #7
    The Fool on the Hill bowie's Avatar
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    Quote Originally Posted by misskit View Post
    suffering due to cash-flow problems
    Yup, their suffering is disclosed by the pained grimace covering their gleeful smiling - thankful for the face masks.

    "the rich get richer - the poor get poorer"

  8. #8
    Thailand Expat OhOh's Avatar
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    Quote Originally Posted by misskit View Post
    the purchase price of gold bars was Bt25,900 per baht weight and selling price was Bt26,100,
    Today's price:

    96.5% รับซื้อ (บาท) ขายออก (บาท)
    ทองคำแท่ง 26,000.00 26,200.00
    ทองรูปพรรณ 25,529.44 26,700.00

    Gold Traders Association : สมาคมค้าทองคำ - ราคาทองคำวันนี้ ราคาทองตอนนี้

    As they have doubled their margin recently, from 100 to 200THB for bars, and jewellery mark up is the standard 5% + plus a charge for "manufacture". I wouldn't shed too many tears for the shopkeepers.

    *** Note: The redemption price of gold jewelry, according to the OCPB regulations, requires that a gold shop can deduct up to 5% from the purchase price of gold bullion on that day.

    *** หมายเหตุ : ราคารับซื้อคืนทองรูปพรรณ ตามหลักเกณฑ์ สคบ.กำหนดให้ร้านทองสามารถหักได้ไม่เกิน 5% จากราคาทองคำแท่งรับซื้อในวันนั้น ๆ ทั้งนี้หลักเกณฑ์ดังกล่าวใช้เฉพาะกรณีซื้อ-ขายร้านเดิมเท่านั้น

    http://Gold Traders Association : สม...ี้


    Quote Originally Posted by bowie View Post
    they looked more like folk selling gold for cash to buy food and pay bills.
    As for the locals currently selling their gold it is for most, pre-harvest time. Once this year's harvest is sold, they will be back buying. Unfortunately it will be "highly probable" (™ 'arry) that it will cost them more THB to buy the same weight necklace.

    If they had bought a year ago their profit is circa 30-35%" (US$ Prices):

    Gold shops face liquidity crisis as rising price tempts people to cash in-1-year-gold-jpg


    Who knows what gold will be worth next year. It's "highly probable" (™ 'arry) going to be higher, inflation, continuing share portfolios crashing, weaker US$ ....

    Many Thais, men and women, believe their "fortune" is safer around their necks and wrists. As well as advertising their wealth and hence status, to all that matter.
    Last edited by OhOh; 16-04-2020 at 08:56 PM.
    A tray full of GOLD is not worth a moment in time.

  9. #9
    Thailand Expat OhOh's Avatar
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    Quote Originally Posted by misskit View Post
    “Many gold shops are "suffering", as few people are rushing to sell their gold and so many people are buying,”
    FIFY.

    It appears that there are no bars or trinkets to buy.

    Gold shops face liquidity crisis as rising price tempts people to cash in-pg2-jpg


    Gold shops face liquidity crisis as rising price tempts people to cash in-gso-jpg


    Gold Traders Association : สมาคมค้าทองคำ - ราคาทองคำวันนี้ ราคาทองตอนนี้

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