Gold Price May Continue To Increase

[snoop1130]

 

BANGKOK (NNT) - A recent increase in gold prices has led to some people selling off the gold they were holding for cash, while some investors have turned to gold as an option to diversify risks. The Gold Traders Association says the gold price may continue to increase slightly, but the situation will not affect the liquidity of gold traders in the country.

 

The Gold Traders Association expects gold prices in Thailand to continue rising slightly, following a recent increase of 700 baht per 15.16 grams of gold in the past couple of days.

 

Its President Jitti Tangsithpakdi said the recent price increase was fuelled by an investment shift towards gold by investors across the globe, following the banking crisis in the United States. Such an increase has many people in Thailand rushing to gold shops.

 

Jitti said some people have however opted to purchase gold as an alternative investment option.

 

A gold retailer Ausiris has introduced the new Gold Shop Next Gen concept for customers looking for jewelry, enabling online transactions and a new gold savings service to meet the changing demand.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230316102810599

 

-- © Copyright NNT 2023-03-16

 

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[KannikaP]

35 minutes ago, snoop1130 said:

The Gold Traders Association says the gold price MAY continue to increase slightly

And what will the winning Lottery numbers be please?

[ThailandRyan]

18 minutes ago, KannikaP said:

And what will the winning Lottery numbers be please?

My Motorbike plate won handily today on a Ticket for the last two numbers and the misses won with the last 3 of the motorbike plate in the local village lottery.  A good day and now time to hit a nice restaurant for dinner to blow the winnings.....lol

 

Here's hoping the gold prices do keep rising.  Been buying gold bars between 2 and 5 baht weights for the past few years as a hedge.

Edited March 16, 2023 by ThailandRyan

[ozimoron]

Gold will either dump a bit here with the stock market (likely) or will continue up generally from here. Either way it will be much more than it is now by year's end unless we have a very unlikely soft landing in the US in the next 2 or 3 months. 

[ThailandRyan]

3 minutes ago, ozimoron said:

Gold will either dump a bit here with the stock market (likely) or will continue up generally from here. Either way it will be much more than it is now by year's end unless we have a very unlikely soft landing in the US in the next 2 or 3 months. 

Looks like Credit Suisse Bank has hit a wall as well, which is another problem since they were mainly financed by the Saudi's and the Saudi's do not want to prop them up now. We shall see what the precious metals do......

[ozimoron]

4 minutes ago, ThailandRyan said:

Looks like Credit Suisse Bank has hit a wall as well, which is another problem since they were mainly financed by the Saudi's and the Saudi's do not want to prop them up now. We shall see what the precious metals do......

The bank is going to borrow 54 billion from the Swiss central bank I believe. That's why the market rallied in the last couple of hours yesterday. Today is another day. 

 

I bought about 4K USD worth of gold ETF yesterday about two seconds before that news and gold dropped a lot. It's back to $1920 now. It'll probably dump but I will keep it from here. 

Edited March 16, 2023 by ozimoron

[NoDisplayName]

I love these incredibly vague prophetic announcements.....

 

Quote

Gold has been on a tear, and may continue to increase, unless the price goes down, or perhaps stays the same.  Some people have bought more gold, while others have sold their gold, although many people showed no interest in gold whatsoever.

 

[3NUMBAS]

SIlver up also

[3STTW]

45 minutes ago, ozimoron said:

I bought about 4K USD worth of gold ETF yesterday

ETF's don't track the actual market price of gold and are only backed up by the issuer's actual bullion holding. The gold is stock is maintained as part of each bank's collateral guarantee against a repeat of the 2008 fiasco. Rather than just letting it sit there in a vault, they issued ETF's to monetise it's intrinsic and notional value.

However, in the case of a liquidity crunch (or a 'run') the first things out the door are instantly redeemable assets - say, gold bullion - and your ETF will probably do the exact opposite to a safe haven investment.

 

Gold used to be regarded as a safe haven in troubled times because it was assumed to be a finite resource. Those days are gone, two causes; most of the money in the stock markets isn't real so imaginary money can't be used to buy real gold in hard times. Take a look at global investment funds over the last three years - an absolute roller-coaster - yet gold barely moved. As of yesterday, gold was actually down 1.4% from 1 year ago when the markets were in complete turmoil.

 

Secondly, gold has become an increasingly harvestable commodity - i.e. it can be recovered from its end use and recycled back into the global pot. In fact, over 1,100 tons was recovered in 2022 alone, and this will only rise as more electronics recycling plants come on line.

 

In essence, gold is definitely not a safe haven or a hedge against inflation, it's just another commodity that reacts to supply and demand. Buying gold right now is a bet that demand will increase beyond an ever increasing supply.

 

 

[ozimoron]

4 minutes ago, 3STTW said:

ETF's don't track the actual market price of gold and are only backed up by the issuer's actual bullion holding. The gold is stock is maintained as part of each bank's collateral guarantee against a repeat of the 2008 fiasco. Rather than just letting it sit there in a vault, they issued ETF's to monetise it's intrinsic and notional value.

However, in the case of a liquidity crunch (or a 'run') the first things out the door are instantly redeemable assets - say, gold bullion - and your ETF will probably do the exact opposite to a safe haven investment.

 

Gold used to be regarded as a safe haven in troubled times because it was assumed to be a finite resource. Those days are gone, two causes; most of the money in the stock markets isn't real so imaginary money can't be used to buy real gold in hard times. Take a look at global investment funds over the last three years - an absolute roller-coaster - yet gold barely moved. As of yesterday, gold was actually down 1.4% from 1 year ago when the markets were in complete turmoil.

 

Secondly, gold has become an increasingly harvestable commodity - i.e. it can be recovered from its end use and recycled back into the global pot. In fact, over 1,100 tons was recovered in 2022 alone, and this will only rise as more electronics recycling plants come on line.

 

In essence, gold is definitely not a safe haven or a hedge against inflation, it's just another commodity that reacts to supply and demand. Buying gold right now is a bet that demand will increase beyond an ever increasing supply.

 

 

I'm not buying gold as an inflationary hedge. I know it doesn't do that. I'm buying it because gold always rises in a recession when the USD falls. 

[wombat]

Historically the only thing that keeps pace with inflation is gold...

Keep buying gold 

[ThailandRyan]

3 minutes ago, wombat said:

Historically the only thing that keeps pace with inflation is gold...

Keep buying gold 

Not quite correct unfortunately this time around.

 

https://www.fxstreet.com/analysis/with-high-inflation-why-isnt-gold-rising-202209051254#:~:text=The sales pitch for gold,real commodity%2C unlike fiat currency.

 

Prices are relative

One of the things to keep in mind, first, is that gold is priced in dollars. So, sure, there has been inflation in many other currencies (with the notable exception of the yen, which is a whole different story). But the dollar has gotten relatively stronger, despite inflation. Partially, because inflation in other currencies has been even bigger.

[nauseus]

11 hours ago, 3STTW said:

ETF's don't track the actual market price of gold and are only backed up by the issuer's actual bullion holding. The gold is stock is maintained as part of each bank's collateral guarantee against a repeat of the 2008 fiasco. Rather than just letting it sit there in a vault, they issued ETF's to monetise it's intrinsic and notional value.

However, in the case of a liquidity crunch (or a 'run') the first things out the door are instantly redeemable assets - say, gold bullion - and your ETF will probably do the exact opposite to a safe haven investment.

 

Gold used to be regarded as a safe haven in troubled times because it was assumed to be a finite resource. Those days are gone, two causes; most of the money in the stock markets isn't real so imaginary money can't be used to buy real gold in hard times. Take a look at global investment funds over the last three years - an absolute roller-coaster - yet gold barely moved. As of yesterday, gold was actually down 1.4% from 1 year ago when the markets were in complete turmoil.

 

Secondly, gold has become an increasingly harvestable commodity - i.e. it can be recovered from its end use and recycled back into the global pot. In fact, over 1,100 tons was recovered in 2022 alone, and this will only rise as more electronics recycling plants come on line.

 

In essence, gold is definitely not a safe haven or a hedge against inflation, it's just another commodity that reacts to supply and demand. Buying gold right now is a bet that demand will increase beyond an ever increasing supply.

 

 

So buy it! Until 2022 there was a continuation of the easy money policies in the USA until the Fed finally realized that inflation was not 'transitory'. That's all changed now - interest rates have been jacked up and we now see some banks starting to wobble. Although higher rates normally knock the gold price down, this is not happening due to the onset of investor fear and some flight into gold, which is still the only real insurance money and inflation hedge.

 

China, Russia and several other countries have been accumulating thousands of tons over recent years and this metal is not reentering the market. Demand is already higher than the total supply (from both mining and recycled recovery). Physical gold has been selling at a premium for months as vaults are being depleted.

 

https://www.gold.org/