Trading in Gold in Thailand - as an investment

[ravip]

Recently a Thai friend of mine said he wants to make an investment in Gold Trading. I dont really understand the exact method this particular company is doing, but it seems something like trading in the stock market.

I have the name of the company, but do not want to post it here as some may accuse me of advertising!

Any comments recommendations about this subject?

(I am aware of many pyramid schemes and scams, hence my post here)

Thank you.

 

[blackcab]

@ravip it's fine to post the name of the company if people are genuinely discussing the merits of a product the company sells.

 

That's a lot different to a brand new member posting a commercial link in their first post.

[AJBangkok]

The majority of the time these gold trading companies are scams. Ask your friend if they are licensed by the Thai SEC as gold contracts are a financial instrument and raising money from retail investors requires a deposit taking license. He’ll probably be told that it’s offshore in HK so no license is needed. That’s not true it’s a big red flag. If he wants to invest in gold then the local gold shop sells bars. If he has an offshore brokerage account he can buy a Gold ETF or a gold fund. There are plenty of options out there but a “gold trading fund “ based in Thailand probably isn’t one of them.

[milys]

17 minutes ago, AJBangkok said:

The majority of the time these gold trading companies are scams. Ask your friend if they are licensed by the Thai SEC as gold contracts are a financial instrument and raising money from retail investors requires a deposit taking license. He’ll probably be told that it’s offshore in HK so no license is needed. That’s not true it’s a big red flag. If he wants to invest in gold then the local gold shop sells bars. If he has an offshore brokerage account he can buy a Gold ETF or a gold fund. There are plenty of options out there but a “gold trading fund “ based in Thailand probably isn’t one of them.

I totally agree with AJBangkok. Investing in gold trading funds in Thailand seems to me kind of asking to get ripped off. You can buy gold bullions, krugerrands etc. in a gold shop if you want to invest in gold prices but be aware of others who want to help you get rich.

[ravip]

This is the company I am referring to >>> http://www.ausiris.co.th/content/index.html

 

[quandow]

Buy low, sell high.

 

Don't mix them up.

[Kurtf]

Just go to your local gold shop and buy a gold bar. They come in sizes as small as 1 baht (equivilant to 0.5292 ounces) Most are sold in 96.5 purity. Easy to carry, easy to redeem, easy to store.

[Lacessit]

There's a lot of paper and electrons flying around the world trading in gold. The physical stuff is much better because it won't burn or disappear into an internet black hole.

[Timebandit]

This company may be above board but their sales clerks don't know diddly squat. I had a sales clerk last year insist that a US Eagle was pure 999.9 gold. I pointed out that it did not have the PPT or % content on the coin as most other coins do. She was interpreting "fine gold" as pure gold. The US gov't never misses an opportunity to lie to the people with slight of words. Eagles and Krugarands are among a few coins that are 92% gold and just weigh more than an oz. to carry the one oz. of gold content declaration. 92% gold content isn't even considered "gold" in Thailand but a gold alloy. The Ausiris clerk refused to see this! I had a friend shocked to be told this and took the stand the same as the clerk. He could not sell the coins here. The shops didn't want to pay to refine the alloy down to gold. I have found the best place to buy 999.9 PPT coins are at a reputable dealer in China Town  or the very best place with the absolute lowest commission is in HKG at Hang Seng Bank. Do some research on this as requirements may have changed in the past 5 years with the mainland gov't tightening it's req'mts. They have pandas, kangaroos, maples and buffalos at a very low commission. Main branch straight in and down stairs to the right. All these coins are 999.9. Computer research required. Gold ETF's are asking to give your gold to someone else. A REALLY BAD CHOICE. Do not get mixed up with paper gold and real gold .Two different animals. Thai gold baht and fractional bars are an excellent insurance policy for the coming currency crisis. " Never let a crisis go to waste" Mayor of Chicago.

[thrilled]

Gold is art like the stock market.It goes up and down.Much May New has been lost trying to time it.It’s very possible that soon after you buy it that it will go down.

i have some just to help diversify my portfolio.

[Monomial]

Ausriris is a very well known player and one of the largest gold traders in Thailand. I have had an account with them for nearly 10 years. Originally they traded physical gold, but when the futures market opened they transitioned to pushing more paper as the costs were lower and it is more convenient for many customers.

 

For recommendations, just know that gold has been in a plateau for the last 6 years or so. It is unlikely to rise significantly in value until a serious event occurs which entices new investors to enter the market. Many of the traditional gold bugs have switched to crypto, so something is going to have to change to bring them back.  You can probably still make money if you are clever and can day trade gold, but there is no reason to think gold is going to spike anytime in the immediate future.

 

Still, doesn't hurt to have a small position and an account ready in case it does.

 

 

4 hours ago, Timebandit said:

 I had a friend shocked to be told this and took the stand the same as the clerk. He could not sell the coins here. The shops didn't want to pay to refine the alloy down to gold.

 

You should not be surprised at this. It is very difficult to sell coins anywhere in Southeast Asia. Each country has their own standard. In Thailand, you buy and sell baht bars. End of story. Ausiris does do 999 small bars as well, but these are not a very big market. If you want to sell coins, go to Singapore or Hong Kong. That is the only place regionally where there is any significant trade in those items.

 

If you want gold that travels well across borders, stick to 999 1kg bars. Anything smaller than that is going to cause problems. If you really want to sell gold coins, be prepared to sell them as scrap, and as you mentioned, you need to find a refiner. I recommend Bangkok Assay for this purpose. They have always given the best price.

 

 

[5633572526]

Gold is an investment just like stocks and bonds. As such it can go up and down.

if you bought gold at the peak of the financial crisis you lost 40% of your money.

gold is a bet against the economies of the world so place your bet carefully