is thai gold a good investment ?

[pumpjack]

is it a good investment , money in bank for rainy day , under the radar so dont have to declare my savings in UK.

where to buy good thai gold.  in bkk

can i ask for discount on it.

buy in a bar or a necklace .

for jewellry is the maximum weight 5 baht or can get more .  

 

thanks

Edited October 15, 2017 by pumpjack

[Boycie]

Similar recent thread in Bangkok Forum

 

https://www.thaivisa.com/forum/topic/1005893-buying-gold-in-thailand-worth-it/?tab=comments#comment-12339263

 

[thrilled]

Gold is Gold.It sells on the world market.Some countries might be A little less or A little more than another country.When you buy gold in a Chinatown in Bangkok it’s 

Fairly reasonable but they do charge for handling ,labor etc.

[retarius]

Do not buy gold as an investment, you buy gold as a hedge. If you try to make money from it, you may be lucky, but its purpose is to balance your portfolio and protect against unforeseen events.

[mike324]

I have friends who made easy money with gold. Another way to buy gold is that they will issue you a paper certificate, no need to carry the gold around. When you sell, just present the certificate. I haven't bought this way, but thats what I heard from a friend.

[GOLDBUGGY]

Stocks that pay Dividends or Bonds, are probably better investments. So I don't know if you could call Gold a good investment or not. Unless you feel an Atomic Bomb is about to drop on New York City. But where it stands now it is probably a pretty safe investment.

 

Besides Supply and Demand, there are many other outside influences that effect the price of Gold. Gold is traded in US Dollars. So even though you can buy Gold with Thai Baht, that price will be a reflection as to what the US Dollar is doing that day.

 

So if you were to buy Gold in Thai Baht, and the US Dollar became weaker compared to the Baht, and even if the price of Gold was at the same price, you would lose money on it. So the currency you buy Gold with, also plays an important factor in making a profit or loss. If you lived in the USA and bought Gold in US Dollars, then your profit or loss would only depend on the price of Gold.

 

Gold is also effected by the Price of Oil. Since many of these Gold Mines are located in remote locations, they depend on Diesel Fuel to power there Generators. Obviously, if the cost of fuel goes up, then there production cost go up as well. The standard Gold/Oil Ratio is 20 Barrels of Oil to 1 Ounce of Gold. So that is like the P/E Ratio in Gold Mining. With Oil at $52 a Barrel (which is also traded in US Dollars) then Gold would trade to about $1040. Since Gold is about $1300 right now, either Oil is underpriced or Gold is overpriced. It is up to you to guess which one.  

 

Some Miners get around this higher Oil Prices by producing the richer ore first, and leaving the ore which now is not feasible to mine. It is better to mix the rich with the poor ore, as even thought they don't make as great as a profit per ton of ore mined, they have more Gold they can mine for a profit. But this also reduces the size (Proven Reserves) of there Gold Mine, there production, and thus profit. In times like that you will see shares in a Gold Miner go down, but the price of Gold go up.

 

As to keeping under the radar with a Gold Investment, verses Stock or Bonds, I am not so sure you can do that anymore. Governments have caught on to that now. They keep a close eye on that. When trading Gold in my country they now record that. As it stands now, or at least in my country, is that any investment you make now, and you make a profit from that, you must declare as Capital Gains, unless it is the house you live in.

 

As to buying Gold Bars or Jewelry, it is a personal choice. For Jewelry, it obviously looks very nice. But you are also paying a premium price for design of Jewelry. I have some Gold Jewelry, but to be honest I don't walk around with in in public as that is a stupid thing to do in my books. To be honest I also never met anyone who ever made any money from selling Gold Jewelry, except the people who sold it to him. Sure you can have Gold Jewelry worth a lot more than you paid for it, but now you have to find somebody to sell it for you, as doing it privately would prove very difficult. Unless it is attached to the Hope Diamond. 

 

Gold Bars have perhaps the smallest commission fees, but aren't much to look at. Care must be taken that they are not opened as one could easily chip a bit off for further sale. There weight is also carefully done when you sell them. Gold Certificates are for investments purposes. Some have hidden costs, like storage fees. This is basically a piece of paper so you can't play with your Gold as you won't even see it.

 

My personal choice is pure Gold Coins. One of the best ones is the 1 Ounce Canadian Maple Leaf, being 99.99% Pure Gold. The South African Krugerrand has always been one of the top sellers. But now the American Eagle and Buffalo have taken over top spot.

 

With Gold you can pretty well trade and sell in any country. But cash is still better. Never saw anyone turn away from US Dollars yet.       

[RichardColeman]

is thai gold a good investment ? If it's for a latest squeeze, no she'll sell it. If for you, maybe, but don't wear it where ladyboys lurk !

[Dazinoz]

17 hours ago, pumpjack said:

is it a good investment , money in bank for rainy day , under the radar so dont have to declare my savings in UK.

where to buy good thai gold.  in bkk

can i ask for discount on it.

buy in a bar or a necklace .

for jewellry is the maximum weight 5 baht or can get more .  

 

Its an individual preference. Personally from what I have read I have bought gold here hoping it will increase significantly.

 

I live in Chiang Mai so can't say about bangkok but should be plenty reputable gold shops around.

 

I am fairly sure you won't get a discount on the gold itself but can often negotiate the commission fee. Gold in bars and jewellery has a spread price posted each day and sometimes several times a day if world gold is changing enough. Those listed prices is what you pay or receive if you sell. Jewellery usually has a spread of around 1000 baht from buy to sell price. Bar only has 100 baht spread and is better to buy for "investment". As far as I know all jewellery has a buy and sell commission which can vary significantly from shop to shop. I have been buying bars in 5 baht and 10 baht and find there is no commission on 5 baht and above bars to buy. Not sure if commission on selling because I have not sold yet,  but assume there will. Suggest you get a Thai Gold app and you can check from your phone (assuming you have smart phone).

 

Here I have the physical gold but I have paper silver in Australia. Again I have done this from all I have read.

[bazza73]

2 hours ago, mike324 said:

I have friends who made easy money with gold. Another way to buy gold is that they will issue you a paper certificate, no need to carry the gold around. When you sell, just present the certificate. I haven't bought this way, but thats what I heard from a friend.

The only problem with that method is one is reliant on the bona fides of the company that provides the paper certificate. While it does not have the same security concerns as protecting physical gold, what happens if the company goes bust?

[bazza73]

Bear in mind Thai gold is not proofmarked like 99.99 bullion. It's readily negotiable in Thailand; however, if you try to sell it elsewhere the price may be substantially discounted.

[johnnysunshine]

 

"I have friends who made easy money with gold. Another way to buy gold is that they will issue you a paper certificate, no need to carry the gold around. When you sell, just present the certificate. I haven't bought this way, but thats what I heard from a friend"

 

I do not agree with your friend and I have been buying and selling for many years...if you do not have physical gold in your possession or a safe place, you do not have gold, period, end of story.   

There is far less physical gold out there in our world than there are certificates and stocks representing gold to be obtained.

I cannot sell gold from the West here without losing some money and I cannot sell Thai gold in the USA without losing some money.

 

 

[Grumpy Duck]

5 hours ago, mike324 said:

I have friends who made easy money with gold. Another way to buy gold is that they will issue you a paper certificate, no need to carry the gold around. When you sell, just present the certificate. I haven't bought this way, but thats what I heard from a friend.

That was and in some cases still is a scam. Is a piece of paper (fancy or not) a hedge against inflation? No the physical gold is the hedge. But gold is so terribly expensive now in my opinion way overpriced. 

 

If a piece of paper has value to you perhaps bitcoin may be a better gamble. A friend of mine baught ฿5000 in bitcoin in a week he made 100% profit, cashed out his initial ฿5000 and is letting his profits ride to earn more. 

But whatever gold, silver, all strategic metals, stocks & bonds are just gambling. Wall street is the worlds largest casino. 

[Grumpy Duck]

4 hours ago, bazza73 said:

The only problem with that method is one is reliant on the bona fides of the company that provides the paper certificate. While it does not have the same security concerns as protecting physical gold, what happens if the company goes bust?

Or is a total fraud as some have been. 

[AgMech Cowboy]

9 hours ago, retarius said:

Do not buy gold as an investment, you buy gold as a hedge. If you try to make money from it, you may be lucky, but its purpose is to balance your portfolio and protect against unforeseen events.

Listen to retarius! Now if you had bought gold in 2001 and held it through that great climb over the next 10-12 years, it was a good investment. Right now, I would approach it as advised here.

 

There is a big gold shop at Seacon Square. My wife tells me all the little shops trade through them. There is no haggling. It's a set price.

[suzannegoh]

I have friends who made easy money with gold. Another way to buy gold is that they will issue you a paper certificate, no need to carry the gold around. When you sell, just present the certificate. I haven't bought this way, but thats what I heard from a friend.

 

Maybe your friends made easy money but I know some farang retirees who a few years ago put most of their money in gold when it dropped back from its peak of >$1900/oz to about 1700, thinking that it was surely a bargain at that price and that the stock market was about to go down the toilet.