Surge in gold exports to limit weakening of baht: analyst

[snoop1130]

Surge in gold exports to limit weakening of baht: analyst

By The Nation

 

 

The baht traded slightly higher in Tuesday morning trade at Bt 31.65 to the US dollar after closing on Monday at Bt 31.69/dollar, Jitipol Puksamatanan, senior director at SCB Securities (SCBS), said.

 

He expected the baht to move in a range of Bt31.60 to Bt31.70 against the greenback on Tuesday.

 

The baht moved up again as export of gold increased, suggesting that Thailand will remain a gold exporter when demand for the precious metal in the market is high. The large volume of gold exported last month partly contributed to a return of Thai exports growth, rising to 3.35 per cent after six straight months of contraction.

 

As investors rushed to buy safe-haven assets over concerns of Covid-19 spreading outside China, investors are expected to continue to dump Thai stocks, he said. They, however, may buy Thai bonds, so their investment strategy would stabilise the baht value, preventing it from further sliding today.

 

US financial markets faced a sell-off on Monday night, as the S&P500 fell 3.35 per cent, while in Europe, the Euro Stoxx and Britain’s FTSE 100, plunged 4.01 per cent and 3.34 per cent respectively. It was their worst performance since August last year. In the global bond markets, the US 10-year yield dipped below 1.40 per cent for the first time since 2016 while the Japanese bond yield also went down to minus 0.09 per cent, the lowest level since November last year as investors worried about the impact of Covid-19 on the economy.

 

Investors see Japanese bonds and the yen as safe-haven assets. The Australian and New Zealand dollars went down due to decreasing prices of commodities products. This made the US dollar unchanged against other major currencies last night.

 

Source: https://www.nationthailand.com/business/30382808

 

-- © Copyright The Nation Thailand 2020-02-25

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[sweatalot]

limit weakening of the baht? In the first place strengthening of the baht should have been limited long time ago. And now they should take any effort to strengtrhen the weakening

[mick220675]

So the Baht will not go down as long as people are buying Thai gold. The economic problems facing the country will not drag the Baht down as long as Thailand is exporting (safe haven) gold.

 

We know Thailand has massive gold reserves, but who is selling and profiting from the sale off all the gold? Its not me.

[Assurancetourix]

10 hours ago, mick220675 said:

We know Thailand has massive gold reserves,

Not as massive as that;
112 tonnes in reserve while the USA, first in the class has more than 8,000 tonnes

 

https://www.businessinsider.com/ranked-the-countries-with-the-10-largest-gold-reserves-2018-7#1-united-states-10

[jesimps]

Do we have any gold reserves left in the UK? Labour's Gordon Brown sold it all didn't he??

Edited February 26, 2020 by jesimps

[Pravda]

Nobody outside Thailand cares about contaminated Thai gold.

 

I guess Canadian dollar should go through the roof then?

 

BTW, I believe the baht devaluation is coming. It will not be happening overnight, but rather gradually and nothing will stop it.

[tonray]

17 minutes ago, jesimps said:

Do we have any gold reserves left in the UK?

Only the gold leaf that Harry and Meghan used on their leaving the Royals announcement

[DannyCarlton]

It ain't working GBP at a 12 month high against the Baht this morning (41.4). USD continues to rise (31.84) close to the 12 month high of 31.94. Happy days are here again?

[Elkski]

How is Thailand gold contaminated?  Or do you mean the cyanide mine?  Dont they sell 99.99% assayed bars?

Edited February 26, 2020 by Elkski

[RocketDog]

2 hours ago, Assurancetourix said:

Not as massive as that;
112 tonnes in reserve while the USA, first in the class has more than 8,000 tonnes

 

https://www.businessinsider.com/ranked-the-countries-with-the-10-largest-gold-reserves-2018-7#1-united-states-10

Of course we don't truly know how much China holds or whether what America holds is truly theirs or simply leased (or held hostage) from other nations. Several nations have found it difficult to repatriate their gold from the USA in the last few years, notably Germany. 

 

It is instructive to note that the nations that try the hardest to convince their citizens not to hold precious metals are usually the ones actively acquiring it clandestinely.

Interestingly, China encourages its citizens to buy gold but only with the intention of asking them to donate it again in the future if necessary; nonetheless, a clever ploy. 

[tonray]

2 hours ago, DannyCarlton said:

It ain't working GBP at a 12 month high against the Baht this morning (41.4). USD continues to rise (31.84) close to the 12 month high of 31.94. Happy days are here again?

When I see 34.5 to the dollar then I'll rejoice...now just a brief respite from the pain

[hotchilli]

2 hours ago, DannyCarlton said:

It ain't working GBP at a 12 month high against the Baht this morning (41.4). USD continues to rise (31.84) close to the 12 month high of 31.94. Happy days are here again?

Both good news... but with all the issues facing Thailand I just don't get how it holds it's value?

[DannyCarlton]

12 minutes ago, tonray said:

When I see 34.5 to the dollar then I'll rejoice...now just a brief respite from the pain

 

2 minutes ago, hotchilli said:

Both good news... but with all the issues facing Thailand I just don't get how it holds it's value?

I think 35 Baht/USD is on the cards. Also 45 baht/GBP, but to reach 2016 values of 50+ baht we'd have to rejoin the EU! 555

[Airalee]

7 hours ago, Elkski said:

How is Thailand gold contaminated?  Or do you mean the cyanide mine?  Dont they sell 99.99% assayed bars?

Nope...even the bars are 96.25%   Back in the US it would only be sellable as scrap and not bullion.

[Airalee]

30 minutes ago, oby said:

u have a lot to learn.  if u want to buy .999 24k gold in thailand, can do..but takes time to buy and sells at a discount.... typical thai bars (easily convertible at any gold shop) are 96.25% = 23.15 karat, is easily traded/bought/ sold at any gold shop in thailand..because gold shops typically use this grade for common use.  

(just ask your thai gf or ladyboy:)

american gold eagles, krugerrand gold coins are typically 20-22 k, or as u say, made with scrap, 555, additives (copper/silver/whatever) to reduce it's purity from typical thai 23k gold.

US dealers would gladly buy thai gold, however u sell it.. typical us gold jewelry is up to 18 k,  yes u can buy higher but the exception rather than the rule.  typical thai gold is 23 k

Suvaṇṇabhumī means "Golden Land" or "Land of Gold" 

 

 

I have a lot to learn?  
 

The only place in Bangkok that will buy 999 gold at a reasonable price is Hua Sang Heng and they have a minimum buy of 1kg.  I tried selling a couple different kinds of 1oz(Troy) 999 bullion (Valcambi, Brittania) other shops.  The only one that would make an offer quoted 20% below spot.  
 

GAE and Krugs are 22k but the amount of pure gold is 1oz(Troy) The coins themselves weigh more than an ounce.  Don’t know why you would state a range of 20-22k. โง่

 

Gold shops in the US (such as Apmex or California Numismatics) will buy recognizable bullion coins (GAE, Buffalos, Philharmonics etc). and bars (Pamp, Credit Suisse, Valcambi etc) without the need for an assay and their prices are quoted.  They don’t make an offer like a pawnshop.  Any jewelry, be it 10k 14k 18k or even 23k Thai gold jewelry will require an assay...and that is what makes it “scrap”.  Some Thai bars will be treated differently but are still not LBMA certified.  Thailand doesn’t even have their own LBMA approved gold.
 

http://www.lbma.org.uk/good-delivery-list

 

And thanks for the underhanded dig “Ask your gf or Ladyboy”

 

That is your lesson for today.  No charge.

[saengd]

On 2/26/2020 at 7:49 AM, Assurancetourix said:

Not as massive as that;
112 tonnes in reserve while the USA, first in the class has more than 8,000 tonnes

 

https://www.businessinsider.com/ranked-the-countries-with-the-10-largest-gold-reserves-2018-7#1-united-states-10

BOT holds 160 tons of gold, they doubled the amount a few years ago.

[saengd]

On 2/25/2020 at 9:39 PM, mick220675 said:

So the Baht will not go down as long as people are buying Thai gold. The economic problems facing the country will not drag the Baht down as long as Thailand is exporting (safe haven) gold.

 

We know Thailand has massive gold reserves, but who is selling and profiting from the sale off all the gold? Its not me.

BOT is selling, the central bank

[mshs]

Thailand is not in the top 15 gold producing nations.

 

It is the 15th gold exporter at a measly 1.4%.

Hong Kong 12%

UK 10%

US 7%

UAE 5%

 

The writers for the The Nation are dim witted-Thais with Ph.Ds.  Much like the "reporters" and "journalists" in the "West".

 

 

[BestB]

Ok. I do not get it . They were worried and brain storming on how to curb baht Strength but now worried Baht may weaken?

[DannyCarlton]

2 hours ago, mshs said:

Thailand is not in the top 15 gold producing nations.

 

It is the 15th gold exporter at a measly 1.4%.

Hong Kong 12%

UK 10%

US 7%

UAE 5%

 

The writers for the The Nation are dim witted-Thais with Ph.Ds.  Much like the "reporters" and "journalists" in the "West".

 

 

"Thailand is not in the top 15 gold producing nations."

 

And neither are any of the nations that you have listed. China No:1, closely followed by Australia.

 

http://www.usfunds.com/investor-library/frank-talk/top-10-gold-producing-countries/

 

[saengd]

BOT will be selling gold at a measured pace in order to smooth out the rate of decrease in the value of THB. That's their job, to protect exporters from sudden rises or falls in the currency. Plus selling gold at the top of the market makes sense rather than to use any other vehicle for this purpose. Everyone wants to see the Baht move lower but nobody wants it to move too quickly or to crash, except some expats that is!