Buying gold bars

[Hal65]

Checked out the pricing for gold bars and 3 shops that carried them (out of 7 total) quoted 400 baht extra. 

 

Was going to ask if this is normal but I guess the uniformity of pricing answers that. I suppose this is because the bars have less subjective value? Or is this one of those things that you're supposed to negotiate down?

[crazygreg44]

five years ago I asked and for bars & bulion, it was 200 THB extra.  Why they would have doubled the provision is beyond my understanding. For ornament, though, it might be as high as 800- 1200 Baht in some places

[Tagaa]

They all try to charge a commission...100 to 300Bt is the normal range. When I began to buy I would go into a shop & inquire about the commission & if they said 300 I immediately turned & left. After about 4 shops I found one that would sell the bars for 100Bt commission for every Bt. (10 BT bar = 1000Bt commish). Fair enough as they have to sell at the price posted by the Association. Once on a trip to Sakhon Nakon, I bought some at a shop for 100Bt comm. & the lady said that when I sold them, if they were bars she sold to me, she would charge no commission on the buy back. She marked hers with a very small stamping on the back side.

 

I have heard there are shops that will charge NO comm., but I have yet to find one. If someone knows of a shop in Eastern Issan that DOES NOT charge a comm, buy or sell, I would be interested as I may be selling 20 or 30 Bt after the first of the year.

 

As with almost everything in Thailand, it's negotiable.

[lassebasse]

I asked about this commission in Udon Thani a few years ago and the explained that commission was only charged for smaller pieces of gold. On goldbars of 3baht or bigger there was no commission.

[Tagaa]

That hasn't been my experience, but as they say, YMMV.

 

I have bought 1, 2, 5 and 10 Bt bars...never have I seen a 3 Bt bar...could be something new as I haven't bought any gold in the last 4 years or so.

[Kurtf]

We have been trying to accumulate some gold buying 2 & 5 Baht bars of 96.5 purity and we haven’t been charged any commission what-so-ever neitherwhen buying or selling. But then we do buy and sell to the same dealer. This is in north of Chiang Mai.

[James Roderick]

22 minutes ago, Kurtf said:

We have been trying to accumulate some gold buying 2 & 5 Baht bars of 96.5 purity and we haven’t been charged any commission what-so-ever neitherwhen buying or selling. But then we do buy and sell to the same dealer. This is in north of Chiang Mai.

How much do these gold bars sell for ?? Do you have to pay a premium ( in addition to the commission amount ) compared with the international selling price for the precious metal? If so. what sort of premium would apply?

[PerkinsCuthbert]

 

7 minutes ago, James Roderick said:

How much do these gold bars sell for ?? Do you have to pay a premium ( in addition to the commission amount ) compared with the international selling price for the precious metal? If so. what sort of premium would apply?

You're not comparing identical items. Thai gold is of a different purity and content, hence the yellower colour. In general there is not much demand for it internationally.

[James Roderick]

Just now, PerkinsCuthbert said:

 

You're not comparing identical items. Thai gold is of a different purity and content, hence the yellower colour. In general there is not much demand for it internationally.

HI Perkins 

 

I thought Gold was sold by karat to indicate its  purity, so if its 96.5 its something like 24 karat gold I cant get my head around why Thai gold would not be in demand internationally. Please forgive my ignorance - I've heard about Thai gold , but I know precious little about it!!

[observer90210]

I would never buy gold bars in Thailand. Buy them from a reliable bank in Europe or better, in a bank in Switzerland.

[shy coconut]

15 minutes ago, observer90210 said:

I would never buy gold bars in Thailand. Buy them from a reliable bank in Europe or better, in a bank in Switzerland.

Would you care to say why?

Also how cost effective is it to travel to Switzerland to purchase gold, and are there 

rules and regulations concerning taking it out of the country.

 

I only ask as you appear to be well learned in this subject.

[Dazinoz]

3 hours ago, observer90210 said:

I would never buy gold bars in Thailand. Buy them from a reliable bank in Europe or better, in a bank in Switzerland.

I buy gold bars in Thailand because easy to sell back in Thailand. I once bought 4 x 100 ounce silver bars from Singapore (internet order delivered to Thailand) and almost impossible to sell here in Chiang Mai. Ended up personally taking them back to Singapore.

 

[Dazinoz]

I have bought a few 5 and 10 baht bars in Chiang Mai and have never paid a commission on bars 5 baht or greater. I have only tired to sell one 5 baht bar and that was in Phuket. Commission varied considerably between shops but you can shop around and bargain on the commission.

[Airalee]

3 hours ago, observer90210 said:

I would never buy gold bars in Thailand. Buy them from a reliable bank in Europe or better, in a bank in Switzerland.

Nearly impossible to sell non Thai bars to a good dealer in Thailand.  I took a 1oz Valcambi combi-bar (still in plastic assay card) and also a 1 oz. gold British Brittsania to about 1/2 dozen gold dealers in BKK (including a Hua Seng Heng branch) and nobody was interested in buying with the exception of one shop that offered ฿30,000 (when the going price was ฿38,000/oz) for the Valcambi but wanted to cut open the bar to test it first.  The Hua Seng Heng branch in China Town were buyers only if you were selling 1kg+.  They wouldn’t even make an offer on a 1 oz. bar.

[watcharacters]

 

I've never bought any precious metal for investment but I thought if the buyer takes possession,  the metal must be assayed when  selling in the future.

 

[Airalee]

5 minutes ago, watcharacters said:

 

I've never bought any precious metal for investment but I thought if the buyer takes possession,  the metal must be assayed when  selling in the future.

 

Depending upon who you buy from in the US (Apmex, Kitco, California Numismatic Investments), the plastic assay card that most bars (and some coins) come in (Credit Suisse, Pamp, Valcambi etc) are sufficient and the plastic cards won’t be opened in order to assay the gold.  Thailand doesn’t appear to be as trusting.

Edited November 6, 2018 by Airalee

[sometimewoodworker]

8 hours ago, watcharacters said:

 

I've never bought any precious metal for investment but I thought if the buyer takes possession,  the metal must be assayed when  selling in the future.

 

Sometimes Thai bars are checked & AFIK they flash heat them to something over 325 degrees C. But mostly the Chinese stamps on the bars are known and accepted.

[exemplary21]

I bought a 5 baht bar recently and paid 50 baht/baht.

 

The selling price would be the normal selling price minus 50 baht/baht.

[Dazinoz]

21 minutes ago, exemplary21 said:

I bought a 5 baht bar recently and paid 50 baht/baht.

 

The selling price would be the normal selling price minus 50 baht/baht.

I think you will find most gold shop charge more than that on selling and it varies considerably. As mentioned above I have only sold one 5 baht bar since started buying. I had a thai friend with me and first shop wanted 1000baht commission (200baht/baht). Finally sold at a shop for 300 baht (60b/b).

[exemplary21]

13 hours ago, Dazinoz said:

I think you will find most gold shop charge more than that on selling and it varies considerably. As mentioned above I have only sold one 5 baht bar since started buying. I had a thai friend with me and first shop wanted 1000baht commission (200baht/baht). Finally sold at a shop for 300 baht (60b/b).

 

They seemed quite professional in their approach, so can only take them at their word.

 

They were the only shop of about 10 that I went into that actually sold ingots.

 

But sure, when I take it in to sell, let's see...

 

Cheers mate.

[Dazinoz]

16 hours ago, exemplary21 said:

 

They seemed quite professional in their approach, so can only take them at their word.

 

They were the only shop of about 10 that I went into that actually sold ingots.

 

But sure, when I take it in to sell, let's see...

 

Cheers mate.

Not doubting what you say about that shop, just from experience I have been charged and have seen charges are higher than 50b/b. As I previously mention any time I bought a bar over 5baht I am not charged a commission. I have only sold one bar once and I explained that above. I did buy 22 baht one time at a shop. It was 2 x 10b and 2 x 1b bars and I was charged 400baht above published gold price at the time. I asked why and they said 200baht commission for each of the 1b bars.

 

I don't know where the shops you looked are but my experience mainly comes from the gold shops at Wararot Markets in Chiang Mai. Many many gold shops.

[Tagaa]

If you absolutely want 99.9 bars, most Thai gold dealers that sell bars will have some 99.9 bars, they just cost a bit more as they are purer. I even saw a shop in Sakon Nakon that had a 1 kilo 99.9 bar. At the time it was 1.7 million, IIRC. They are minted here & the Thai dealers will buy them back. They are hesitant to buy any gold from outside the country.

 

Not all shops sell bars. Some do & some don't. Go from shop to shop, find out who has them, then start to ask about commissions. As I said earlier, I went to many shops that had bars and since I'm farang, most wanted 300 bt premium per 1 baht weight. I finally found a shop that would sell them for 100 bt premium. That is who I dealt with. If they want a big premium, don't even try to negotiate, just walk out & go to the shop next door and so on & so on.  When I need to sell, maybe next year to top up the bank account for visa extension renewal, I'll go back to the same shop that I purchased from originally.

 

The per oz. price for 99.9 gold quoted in the US is not what you pay here. You have to do the math converting dollars to baht, ounces to baht weight & 99.9 to 96.5 purity. I worked out the formula years ago & entered it in my spread sheet. You can do the same & verify for yourself what the local price should be.