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Baht becoming ridiculously strong


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On 9/9/2024 at 2:20 PM, Peterphuket said:

With the positive implication that the gold price should also go up, but it doesn't look like that.

The gold price HAS been going up ... against the U.S. dollar. Since the beginning of the year, the U.S. dollar price of gold has gone from around $2,000 to about $2,600. The problem is that the U.S. dollar has been crashing (down over 10% since April) against the Thai Baht, so the Thai gold price hasn't really been going anywhere since then. 

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On 9/9/2024 at 5:35 PM, Peterphuket said:

It was about 4 weeks ago that everything pointed to the gold price in the USA going up, so I drove to the gold shop that Monday morning to buy gold for my Thai money
And what turned out after the next day it only went down.

 

Where does that phrase come 'Patience Young Grasshopper'? - letsdiskuss

You bought gold for the long term to preserve your purchasing power. A similar thing happened in Canada in the early 2000s. Gold was going up in price significantly against the US dollar but not against the Canadian dollar, which frustrated many Canadian gold investors. Eventually the price of gold broke out and rose manyfold over the years against the Canadian dollar as well. 

All Data Gold Price History in Canadian Dollars per Ounce

Edited by farangkinok
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42 minutes ago, soalbundy said:

What I don't understand is that the Euro has risen against the dollar (ok due to dollars weakness) but fallen against the baht

 

I would explain that this way:

 

The two currencies actually were in tandem from Jan 2020 to July 2021. However, the Euro then went on a deep nosedive, the Euro actually also fell against the Baht, just not as much. Against the Baht the Euro recovered much more quickly, which makes sense as Thailand's currency is much weaker than the USD, not as a snapshot but as a whole I mean.

 

However, since July there has been a dichotomy, where the Euro rose against the USD but fell against the Baht. I wonder if that can be explained by the Thai people putting in place a new government, expecting more tourism from visa changes and things like this. But it is interesting.

 

https://in.marketscreener.com/quote/currency/EURO-THAI-BAHT-EUR-THB-88940/graphics-comparison/

 

Generally though, since the Euro fell harder against the USD, it is presumably normal that it would rebound a bit harder against the USD.

Edited by Cameroni
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