How do Thai people make a profit on gold

[Kurtf]

6 hours ago, Surelynot said:

What many people fail to take in to account is the "lost opportunity cost of capital"......what could the money, tied up in gold, be earning if invested elsewhere...especially at a compounded rate.

 

I suspect whilst some gold, as part of a broad portfolio is fine, I doubt many ordinary people make a profit.

Exactly how much are you talking about when the interest rate provided at banks is about 1.5%. Gold can appreciate much more than that pittance if bought at the right time.

[khunPer]

On 12/24/2020 at 11:05 AM, poppysdad said:

So my question is I often hear that ordinary Thai’s frequently buy and sell gold in these shops so how do they make a profit on their trading if that % figure is what the gold shops take.

If you buy gold for investment, you buy investment gold bars, not jewelry...

 

Edited December 26, 2020 by khunPer
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[samsensam]

 

the same way anyone from any other country would... you could have found out for yourself with a quick google search...

 

https://moneywise.com/a/how-to-buy-gold-if-you-dare

 

Edited December 26, 2020 by samsensam

[Lacessit]

54 minutes ago, khunPer said:

If you buy gold for investment, you buy investment gold bars, not jewelry...

 

Gold is never an investment, it is a currency hedge. Investments make income in dividends or interest, gold only makes money if one buys for less than they sell it.

[Fat is a type of crazy]

26 minutes ago, Lacessit said:

Gold is never an investment, it is a currency hedge. Investments make income in dividends or interest, gold only makes money if one buys for less than they sell it.

An investment isn't defined by whether it is income earning - just as something that may be profitable in the future. Vacant land, memorabilia, a GT Ford Falcon or gold can all be good investments.

[khunPer]

12 minutes ago, Lacessit said:

Gold is never an investment, it is a currency hedge. Investments make income in dividends or interest, gold only makes money if one buys for less than they sell it.

Investment funds moves around, depending on market, sometimes some funds will seek refuge in gold, and they don't buy jewelry.

 

Buy cheap, sell expensive is also the target for numerous stocks, especially those that makes capital gain instead of paying dividend, so quite similar. Gold has for some been a good "investment" during the later years, in periods better than dividend paying stocks, or interest paying bonds.

 

Personally I never touch gold, others have a different opinion, and they buy so-called "investment gold", i.e. gold bars, or shares in same. There are different comparative graphs, depending of stock-index and period...

 

 

 

 

[Lacessit]

1 hour ago, Fat is a type of crazy said:

An investment isn't defined by whether it is income earning - just as something that may be profitable in the future. Vacant land, memorabilia, a GT Ford Falcon or gold can all be good investments.

It depends on what one defines as an investment. To me, they are assets that produce income, such as a house supplying rent income, or share dividends.

True, vacant land and gold are worth having, as they keep in step with inflation. Memorabilia or a GT Ford Falcon are more chancy, because they are dependent on consumer tastes, which can be fickle.

 

[sometimewoodworker]

2 hours ago, khunPer said:

If you buy gold for investment, you buy investment gold bars, not jewelry...

 

That is what you may do others may buy jewellery. I currently have a bracelet that is worth 670% more than I paid for it and that is taking into account the lower price for used items. The advantage of jewellery is that it’s nice to wear occasionally, something you can’t do with bars. SWMBO has several items that get used on special occasions that will also net a significant profit if sold.

[khunPer]

27 minutes ago, sometimewoodworker said:

That is what you may do others may buy jewellery. I currently have a bracelet that is worth 670% more than I paid for it and that is taking into account the lower price for used items. The advantage of jewellery is that it’s nice to wear occasionally, something you can’t do with bars. SWMBO has several items that get used on special occasions that will also net a significant profit if sold.

Sure, but I would consider investment more than you can wear, without being a loaded wight lifter...????

[khunPer]

33 minutes ago, Lacessit said:

It depends on what one defines as an investment. To me, they are assets that produce income, such as a house supplying rent income, or share dividends.

True, vacant land and gold are worth having, as they keep in step with inflation. Memorabilia or a GT Ford Falcon are more chancy, because they are dependent on consumer tastes, which can be fickle.

Land and gold might both decrease and increase more than inflation (Consumer Price Index)...

 

 

[sometimewoodworker]

4 minutes ago, khunPer said:

Sure, but I would consider investment more than you can wear, without being a loaded wight lifter...????

Then you clearly have far more personal wealth than I do and a rather unique view of what an investment really is. 
 

Almost anything that improves over time is a good investment. The amount invested is irrelevant to its function. Just the less invested the smaller the total gain.

[khunPer]

2 minutes ago, sometimewoodworker said:

Then you clearly have far more personal wealth than I do and a rather unique view of what an investment really is. 
 

Almost anything that improves over time is a good investment. The amount invested is irrelevant to its function. Just the less invested the smaller the total gain.

Thanks for you reply. I talking in general terms of "investment", personal terms are relative. You can "invest" in a lot, but "investment" is for later resale with a profit, like wine, which you don't drink. Great when you can enjoy an "investment" like jewelry or art, but in general terms to my understanding, investment is business and numbers, without personal affection...????

[Rawairat]

Apart from those people pushing gold , selling it like gold shops who make a fortune when the gold is put down as collateral on a loan 99% of investors lose. 30 years ago my ex was getting an B18000 loan on gold valued at B20,000 and paying B500 interest every month the gold was held. Roughly 33% yearly interest and miss a payment by one day you lose the gold, not a bad return with no downside for the gold shop. 
All I’ve read says gold is a very poor investment long term but it is shiney.

[talahtnut]

If you want a profit from gold, buy the gold shop, not the gold.

[Lacessit]

5 hours ago, Rawairat said:

Apart from those people pushing gold , selling it like gold shops who make a fortune when the gold is put down as collateral on a loan 99% of investors lose. 30 years ago my ex was getting an B18000 loan on gold valued at B20,000 and paying B500 interest every month the gold was held. Roughly 33% yearly interest and miss a payment by one day you lose the gold, not a bad return with no downside for the gold shop. 
All I’ve read says gold is a very poor investment long term but it is shiney.

As I have said before on this thread, I have never lost money on gold. Lost money on plenty of other assets.

[elgenon]

On 12/24/2020 at 5:05 AM, jackdd said:

On average they aren't making any profit on it. They buy it as investment and sell it when they need cash. The only people who make a profit from trading are the gold shops.

I think they tend to view real estate investment in a similar way. Whereas farangs want to know what profit they can make.

[Peterw42]

50 minutes ago, elgenon said:

I think they tend to view real estate investment in a similar way. Whereas farangs want to know what profit they can make.

A very relevant observation. And it has a big impact on the broader property market.

Thais are often happy just to hold real estate, unlike the west, they are not looking for a yield or speculating for a capital gain. 

We tend to see an unoccupied/un-sold condo as a poor market etc, for Thais its just like some gold in the safe.

[elgenon]

On 12/26/2020 at 4:47 PM, Peterw42 said:

A very relevant observation. And it has a big impact on the broader property market.

Thais are often happy just to hold real estate, unlike the west, they are not looking for a yield or speculating for a capital gain. 

We tend to see an unoccupied/un-sold condo as a poor market etc, for Thais its just like some gold in the safe.

Often it also results in them willing to pay a higher price as well. When I thought about buying an old shop for a loft-type residence in Chiang Mai I saw the prices were way above what one could profitably rent the shop for. I abandoned my idea.

[ChakaKhan]

On 12/24/2020 at 9:44 PM, FritsSikkink said:

Never go to a gold shop with a woman.

What about ladyboys?  Specifically ladyboys from pattaya? ????   They seem to take a shine to it..

[Leaver]

On 12/24/2020 at 5:24 PM, sherwood said:

The profit comes from someboby else buying it for them and then they sell the gold at a reduced price because they never paid a single baht for it in the first place.

The smart ones say it was stolen, and how precious the gold gift was to them because it reminded them of who bought it for them.  So, they get more gold bought for them. 

 

Then, Mama in the village is very sick, and the gold had to be sold for medicine for her.  And so on, and so on.   

 

                                                                                   ????  

[Leaver]

On 12/28/2020 at 9:41 AM, ChakaKhan said:

They seem to take a shine to it..

No, they just seem to take it, no shine needed.  ????