Khun Jean Posted January 27, 2009 Share Posted January 27, 2009 (edited) If prices are rising you don't want to sell, but hold and sell for a higher price. Seems like an easy way to make more money. On second thought it probably is because they don't want to buy gold too much. Closing shop looks the same to me as a bank holiday. They would need to get cash money from the bank in large amounts. Sure you have gold as a guarantee, but why borrow money from the bank and pay interest when you have a shop full of gold. Edited January 27, 2009 by Khun Jean Link to comment Share on other sites More sharing options...
bangon04 Posted January 27, 2009 Share Posted January 27, 2009 If prices are rising you don't want to sell, but hold and sell for a higher price.Seems like an easy way to make more money. On second thought it probably is because they don't want to buy gold too much. Closing shop looks the same to me as a bank holiday. They would need to get cash money from the bank in large amounts. Sure you have gold as a guarantee, but why borrow money from the bank and pay interest when you have a shop full of gold. The problem comes from the unreasonable customers who have bought gold before and now expect to be able to sell it back to the shop at a PROFIT. This goes against the basic rule of gold shops in Thailand - that the shop must always make 400-500 baht on every item of gold they sell. Otherwise what is the point? So naturally they are forced to close the shop to stop this happening, and it is really dampening the true spirit of Chinese New Year. Link to comment Share on other sites More sharing options...
tropo Posted January 27, 2009 Share Posted January 27, 2009 Hmm...if currency exchange shops are smart enough to update the price during the day - would it not make sense for shops that make their living on GOLD to have a constant feed giving them the gold market price constantly(no matter whether volatile or not)? Oh well....TIT....Cheers! They do. I've seen gold shops update prices many times throughout the day. Link to comment Share on other sites More sharing options...
Jai Dee Posted January 28, 2009 Share Posted January 28, 2009 Huge crowd of speculators sell off gold in Yaowarat as prices hike Speculators are queuing up in front of many gold shops in Yaowarat to sell off their gold for price speculation following a gold price hike. The Gold Trader's Association of Thailand announced today (January 28) that a gold ornament of 15.2 grams was bid at 14,341.36 baht and offered at 15,050 baht. At the same time, gold bars weighting 15.2 grams was bought at 14,550 baht and sold at 14,650 baht. With the hectic trade in the China Town, President of the Gold Traders Association of Thailand Chitti Tangsitthipakdi (จิตติ ตั้งสิทธิ์ภักดี) said the sales volume today would hit two billion baht. He said gold prices today have hit higher by 50 baht for each type of gold. Gold shops in Yaowarat were closed for two days, from February 26-27, due to the Chinese New Year. At the same time, the price of gold futures contracts as of February at New York Mercantile Exchange (NYMEX) closed at US$899.50 per troy ounce, dropping by US$9.30. The price moved in the range of US$892.20-907.60 per troy ounce. Speculators’ continuation to purchase the contracts in the past days resulted in a price hike of US$900 per troy ounce per gold future contract for the first time in the last three months. Speculators later dumped the contracts for price speculation. Source: National News Bureau of Thailand - 28 January 2009 Link to comment Share on other sites More sharing options...
astral Posted January 28, 2009 Share Posted January 28, 2009 Gold shops close in China TownAccording to the chairman, many people went to gold shops to sell gold during the weekend, causing gold prices to rise sharply. The chairman must have a PhD in economics. That would be a degree in Thai Economics........ IME prices drop when people are selling. Link to comment Share on other sites More sharing options...
samgrowth Posted January 28, 2009 Share Posted January 28, 2009 (edited) Commodities are like stock market, or oil market. If you know the movement, you will be rich. However, most people think that they know where the low and high are. People may make small gain a couple of time, however, at the end, people loose big. Trust me. The gold shops in Thailand are 100% run by "Jews of the East". This term is actually from one of the Thai King (in a BBC post). They always win, because they are the middle man, and knows how to square off positions. The gold traders have access to the gold market overseas. When people sell to them, they export to the overseas market. Example, if the overseas market quote 16,000 baht, they will buy up at 15,000 baht, and export it. Like wise on the buying side, they will sell at a profit from what they get from overseas market (e.g. import at 13,000 Baht & sell at 14,000 Baht). These numbers are not precise, it is just used to proof a point. Remember oil? Many airlines have the bulk of their 2009 needs locked at price above 100 USD/BBL, when the spot market now is only 40 USD/BBL. These airlines not not stupid, and yet get it wrong. You think ordinary people like you and I know where gold price is heading? I won't be surprise that people will queue up to buy gold at 20,000 Baht, thinking it will hit 30,000 Baht. After the people stock up, gold price drop to 5,000 Baht, loosing 75% of its value over say 6 months. Who have the last laugh? Edited January 28, 2009 by samgrowth Link to comment Share on other sites More sharing options...
Samuian Posted January 28, 2009 Share Posted January 28, 2009 Gold in Bangkok was 7,000 baht mid 2000 when I first met my wife to be and over that time it's gone up 100% + but not even a whimper from the Jews of Asia until now, as soon as the price of gold starts fluctuating they can't shut up shop quick enough. in 1992 it was 4300 ThB! In 1992 EVERYTHING was cheaper by the amount that inflation has increased during the last 17 years well by then one german mark bought 15 baht - so one Baht weight of gold was approx. 300 DM or ~ (150 Euro today) todays Goldprice (Bahtweight) is 14450 and the Euro 45.52 - 1 Baht Gold 317 Euro (it just doubled) Except rent, property prices not much has really gone up double! A Singha cost's pretty much the same what it did 19 years ago and so some staples like Hainan Chicken, Koa Pat... and considering that in case of the value of the euro as it was the exchange equivalent 1.99 Dm to 1 Euro the Euro should only buy approx. 30-34 Thai Baht but "rakes in" a whooping 45.52! Which is a third more buying power then the value ratio of Mark - Baht was! So in fact prices which have come up due to inflation, are covered by the higher value of the euro! So the Singha Beer what has gone up by 10 baht from 60 to 70 has become cheaper! Compared to the DM- ThB - Euro Ratio over this period Gold has only gone up 50% but in Thai-Real terms even gone up well over 200% So some 9 years ago the currency of my home country would have approx 33% less buying power than it's conversion into the euro today does! This is only meant to reflect my very personal analysis of the price/value for money situation - NOT a financial market analysis! I am aware that the US$ and pound Sterling are doing worse! Link to comment Share on other sites More sharing options...
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