Cash-strapped Thais rush to sell gold as coronavirus hits economy

[snoop1130]

Cash-strapped Thais rush to sell gold as coronavirus hits economy

By Jiraporn Kuhakan, Satawasin Staporncharnchai

 

Thais flock to sell gold as demand for cash increases after the partial shut down caused by the outbreak of the coronavirus disease (COVID-19) hurts the local economy in Bangkok, Thailand April 16, 2020. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Cash-strapped Thais rushed to sell gold in Bangkok’s Chinatown, on Thursday, cashing in on a surge in the price of the precious metal as the new coronavirus outbreak pulls the economy into a recession, with millions losing jobs.

 

Many Thais keep some savings in gold and at a time of hardship are taking advantage of a recent rise in the benchmark global price to $1,722 an ounce, a seven-year high. In Thai baht, prices hit an all-time high this week.

 

“Because of the COVID-19 situation, I couldn’t make a living and I still have to pay for my staff. That’s why I need to sell my gold,” said Tippawan Saen-Usa, a 28-year old online clothes seller.

 

Wearing masks and trying to keep at least a few feet apart, people started queuing hours before shops opened at 8 a.m (0100 GMT). The lines stretched for several blocks.

 

Business owner Wutthichai Suwannaro said he was cashing in 120,000 baht ($3,673). “The market where I work is closed now that’s why I need to sell gold to cover my family expense,” he said.

Spot gold prices in Thai baht have climbed by over 24% so far in 2020, compared to a 13% rise in U.S. dollars.

 

“In over 60 years in business, this is the first time that I’ve seen people selling a lot of gold,” said Jitti Tangsithpakdi, president of the Gold Traders Association.

 

“I suggest don’t sell your gold at once as COVID-19 will not be over soon and gold prices may still make new highs,” he said.

 

Thailand has reported 2,672 cases of infection and 46 deaths. It has imposed a nationwide night curfew, having closed malls and bars and banned passenger flights as well as discouraged activity to limit the spread.

 

The central bank expects the economy to contract 5.3% this year, the worst contraction since 1998 during the Asian financial crisis.

 

Thai households have invested a lot in gold and will sell the gold whenever gold prices go up or during economic hardship.

 

“Gold selling will continue for a while as prices are still high,” said Tanarat Pasawongse, chief executive officer of Hua Seng Heng Group, Thailand’s largest gold trader.

 

“Most people are selling gold jewellery, which reflects the bad economy, so people want to have cash,” he said.

 

-- © Copyright Reuters 2020-04-16

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[OnTheGround]

8 minutes ago, snoop1130 said:

“I suggest don’t sell your gold at once

as COVID-19 will not be over soon

 

This gold seller know more than those in charge.

 

 

[trainman34014]

Whatever they get it won't last long.    They are all betting on things returning to normal after another month but what of it doesn't for another three months ?     Can't see the Plebs in Government House knowing what to do !

[spiekerjozef]

13 minutes ago, trainman34014 said:

Can't see the Plebs in Government House knowing what to do !

Run?

[19DL86]

I think gold looks very austenticious and vulgar at the best of times, never ever got its bling bling. Summed up by those Rappers as a very vile statement.  Pleased to see a little less of it on the fingers and wrists of those advertising their wealth or opulence at any time.  More so now.

 

But there again gold hasn't been JUST gold or jewelry here or in most of Asia, forever and a day.  It's a bankers draft as well as a statement.

 

As for myself I m just gutted that I ll not benefit from the good old days that will soon be returning. It's gonna be great once this cloud lifts, back to good old cheap fun.  Those classy divas of the rice farm, with their former inflated Agogo bar prices - will be grabbing what they can get at market rates. 500-1,000 ST is my bet.

 

lovely jubbly.

[Justgrazing]

1 hour ago, snoop1130 said:

will sell the gold whenever gold prices go up or during economic hardship.

and you're bird might sell it regardless of up or down fluctuations anyway .. 

[Cricky]

7 hours ago, snoop1130 said:

“In over 60 years in business, this is the first time that I’ve seen people selling a lot of gold,” said Jitti Tangsithpakdi, president of the Gold Traders Association.

 

“I suggest don’t sell your gold at once as COVID-19 will not be over soon and gold prices may still make new highs,” he said.

I suggest tell those gold shop owners to make sure they have cash available to give to their needy customers.

Tell the gold shop owners to sell their possessions at a loss to have this cash handy.

Tell the gold shop owners not to inflate the buying commission/charges

 

These poor Thai people are suffering, they don't need your pathetic attitude 

[RichardColeman]

You just know there will be a story up tomorrow 'Son kills mum when she refuses to sell gold'

[AussieBob18]

The reason Thais and many others in SEAsia buy and keep gold, is for times like this - so they have something to help them out in the bad times. Most will get a lot more back than they paid for it.  Smart thing to do - I dont trust Thai banks either - and they give far lower returns. 

[UbonThani]

Depends when they bought it. The problem with 90% of Thais is they spend a month's worth of money in 3 days.

[malibukid]

10 hours ago, 19DL86 said:

I think gold looks very austenticious and vulgar at the best of times, never ever got its bling bling. Summed up by those Rappers as a very vile statement.  Pleased to see a little less of it on the fingers and wrists of those advertising their wealth or opulence at any time.  More so now.

 

But there again gold hasn't been JUST gold or jewelry here or in most of Asia, forever and a day.  It's a bankers draft as well as a statement.

 

As for myself I m just gutted that I ll not benefit from the good old days that will soon be returning. It's gonna be great once this cloud lifts, back to good old cheap fun.  Those classy divas of the rice farm, with their former inflated Agogo bar prices - will be grabbing what they can get at market rates. 500-1,000 ST is my bet.

 

lovely jubbly.

they will all be back down clamoring at Thapee Gate

Edited April 17, 2020 by malibukid

[Venom]

Yesterday the loud speaker mounted on a pickup truck driving up and down the road announcing loans available using your motorbike, car, truck, gold, home, etc. etc. as collateral. Business is booming!

[Isaan sailor]

How about repoed late model cars and trucks?  Where can we find this kind of action?

[19DL86]

41 minutes ago, Isaan sailor said:

How about repoed late model cars and trucks?  Where can we find this kind of action?

HA!!!

Please don't get me started on this one mate. Nearly had a lynch mob of liberals outside my gaff last time.  But it's not gonna be long, keep hold of your cash things are going to change drastically.

[RocketDog]

On 4/16/2020 at 8:43 PM, OnTheGround said:

 

This gold seller know more than those in charge.

 

 

Why do you think his guess is any worse than another's?

From where I sit in the cheap seats is doesn't look like anybody knows. 

You know what they say about opinions.