Thailand News - Local gold prices likely to surpass 10,000 bt early next year

Nicke · #1 29-11-2005, 03:59

BANGKOK, Nov 28 (TNA) – Local gold prices are very likely to surpass 10,000 baht per one baht (15.16 gram) early next year since hedge funds have shifted their speculation from the forward market of oil to the gold market, according to an industry executive.

Jitti Tangsithipakdi, President of the Gold Trade Association, said the speculation shift had edge up gold prices uninterruptedly close to US$500 per ounce at present.

It resulted in local gold prices increasing 100-200 baht per day on average to 9,850 baht per one baht at current. It is very likely the prices would rise above 10,000 baht early next year.

He said the continued rise in the gold prices had lessened people’s purchasing power of the product on the eve of the New Year festival in which gold trading is active every year.

He projected the sale of gold in the New Year celebration period would drop by 20 per cent due to the upward gold price adjustment. (TNA)

Nicke · #2 29-11-2005, 04:00

As a sidenote, when I moved here 6 years ago the price was 5,000 baht something.

stevem · #3 29-11-2005, 04:04

We just sold a stack of gold the other week. Most of it was brought sub 5K or just over 5K, so we did very nicely out of it.

Thai Kwan Do · #4 29-11-2005, 05:27

so, buy some golden ring /necklaces for your g.f. before next year????
is that the message?

LivinLOS · #5 29-11-2005, 11:09

I have been long investment gold for 18 - 24 months in a very big way.. Earlier this year I started to bias a lot of holdings into the mining and exploration sector.. Due to the leverage factor of a small price in forward gold prices creating leverage on the producers the upward gold movements has sent them rocketing. I made more in one week this month than my entire cost of living in Thailand for a year !!!

Gold crossed 500 an ounce last night.. Its on a nice solid uptrend (though near the upper range and can or even should either pullback or stablise) and on course for the 535 and 560 resistance levels. Personally I think once 550 - 560 is breached it looks like a clear run to 800+.. My analysis and belief is we will see those numbers and it could well be inside 12 - 18 months once the recognicition of this commodity bull becomes more mainstream and the failure of fiat money and inflation risks are more widely recognized.

As to jewelery gold here in Thailand its already over 10k with manufacturing / workmanship charge in some shops.. Some Thai minister came out a few weeks ago and said that gold would not cross 10k.. Ohh really how are you goiung to stop it.. Show me pure gold cheaper than market value and I will have it by the tonne and forward sold, stupid comment made by someone with no understanding of the arbitrage trade he was implying.

For investment I see even more percentage terms rise in Silver for the near term.. Took a 150k bet on that late sept and seen 20% so far.. Silver could run 12 - 16 USD (from 8.32 as I type) inside 12 months.

stevem · #6 29-11-2005, 11:34

Quote:

Originally Posted by LivinLOS

Some Thai minister came out a few weeks ago and said that gold would not cross 10k.. Ohh really how are you goiung to stop it..

Typical Thai government statement. It will not happen because we have said so.

geespot · #7 29-11-2005, 14:32

Well even in the last 3 weeks its went up quite a bit

Ben sold 5 baht gold couple months ago got 40k, soled another 5 baht 2 weeks ago got 45k

Where we are at moment (today) to buy gold per baht 9600 baht to sell gold 8600 baht

G

LivinLOS · #8 29-11-2005, 14:49

Those match as prices here are 9600 or 9800 2 days ago on buy price with anything from 200 - 600 workmanship (9800 + 600 being the place under Big C who were snotty difficult buggers.. were really awkward)..

Of course gold rarely has more than a tiny margin in any one location simply as its cashable for market value everywhere.

Rex7777 · #9 29-11-2005, 18:12

I wonder if it's easy to sell gold coins in Thailand? US Gold Eagles, Canadian Maple Leafs, etc? I've got some of those and am wondering if I should bring it with me when I move?

Rex

LivinLOS · #10 01-12-2005, 12:44

The gold market in Thailand seems to be a little awkward.. There are (mostly Chinese) gold bullion dealers who sell investment grade bars.. I have not seen eagles, krugerands, maples, here but obviously gold is gold but getting best price like a conventional coin dealer would be tough. The physical gold market (bullion not jewelry) here feels harder to navigate and I would think the spreads would not be as tight.

My advice would be to convert your coins into Perth mint certificates or something like the superb new bullion vault (.com) accounts.. Much easier trade options on gold these days with no security risk, storage hassles, yet still fully backed. You also have ETF options with GLD and there is the gold and silver exposure of CEF.

jesper_dk · #11 12-12-2005, 21:21

How high can it get??

BANGKOK: -- Local gold price hits a record high of Bt10,700 per baht Monday due to the rising gold price on the world market.
Gold sold on the domestic market Monday sold at Bt10,400 per gold bar per baht in weight (15.16 grammes)and Bt10,700 for gold ornaments.

Higher prices of gold in the global market resulted as speculation shifted from the oil market to the gold market and some countries invested their foreign reserves to buy gold, according to the President of the Gold Traders Association, Mr. Chitti Tangsitpakdi.

He said he wouldn't forecast the trend of the gold price as it could influence the local market.

More owners have rushed to sell gold for profit. Many goldsmiths have been forced out of work as gold sales have fallen, he said.

Gold imports have dropped since November except those imported for re-export, he said.

Mr. Chitti dismissed a rumour that gold shops were buying gold at a lower price than its market value, confirmed that the buying and selling prices of gold were fixed at uniform rates nationwide.
Jesper_dk

Benjy · #12 12-12-2005, 21:35

Still dont think it has hit the prices it was 30 odd years ago though, strange that things like Gold and oil of which there are only limited resources, dont really appreciate with inflation.

LivinLOS · #13 14-12-2005, 10:29

Thats not a fair essessment.. Gold has followed inflation for 100's of years (the USD has only been off the gold standard since nixon closed the gold window in 73, so this experiment with fiat money and fractional reserve banking is only 30 ish years old)..

In the 80's gold briefuly spiked due to a few combined fears and effects al;l happing at once.. It popped to 800 and dropped back.. I believe those same factors are coming and we will see Gold at insane amounts compared to current prices (2k per ounce) in the 5 - 8 year timeframe.. The current slight increases are just the very early stage..

If anyone has any interest in common sense financial info and the possible meltdown ahead try reading Financial Reckoning Day and Empire of Debt..

marc26 · #14 14-12-2005, 12:40

Quote:

Originally Posted by LivinLOS

Thats not a fair essessment.. Gold has followed inflation for 100's of years (the USD has only been off the gold standard since nixon closed the gold window in 73, so this experiment with fiat money and fractional reserve banking is only 30 ish years old)..

In the 80's gold briefuly spiked due to a few combined fears and effects al;l happing at once.. It popped to 800 and dropped back.. I believe those same factors are coming and we will see Gold at insane amounts compared to current prices (2k per ounce) in the 5 - 8 year timeframe.. The current slight increases are just the very early stage..

If anyone has any interest in common sense financial info and the possible meltdown ahead try reading Financial Reckoning Day and Empire of Debt..

i trade a gold stock. by far the easiest stock to trade