Selling Gold

[ThaisGood]

Hello. Sorry if this has been asked already. I want to know what the spot price of pure gold is in Thai baht.

Assume I have a 10 gram bar of gold, Credit Suisse assayed gold bar.

I saw this in today's newspaper:

"The Gold Traders Association this morning announced the buying price at 19,419.96 baht per baht-weight for gold ornaments and 19,700 baht per baht-weight for gold bar."

What exactly is baht-weight? I think one baht is 15.244 grams, however that is 96.5% pure. The real amount of pure gold in one baht gold is 14.7 grams.

I am just looking for a calculation that will explain the spot price per gram of pure Swiss gold.

Thanks!

[Naam]

I am just looking for a calculation that will explain the spot price per gram of pure Swiss gold.

for the record: "Swiss gold" does not exist as far as your question is concerned your 10g CS gold bar has a value of 13,392 Thai Baht (assuming a gold trading shop is willing to buy it and applies the price of THB 19,700 per Baht weight you mentioned).

[ThaisGood]

I am just looking for a calculation that will explain the spot price per gram of pure Swiss gold.

for the record: "Swiss gold" does not exist as far as your question is concerned your 10g CS gold bar has a value of 13,392 Thai Baht (assuming a gold trading shop is willing to buy it and applies the price of THB 19,700 per Baht weight you mentioned).

Thanks for your help. So you take the price quote for that day, example 19,700 and divide by 15.244 and that will tell you price per gram of 9999 gold?

Thanks again,

[flying]

Thanks for your help. So you take the price quote for that day, example 19,700 and divide by 15.244 and that will tell you price per gram of 9999 gold?

Thanks again,

Yes One baht = 15.244 grams & price in Thailand is stated per Baht

[cloudhopper]

Here is a useful link for expats - also there was a fairly recent thread on this topic you can search for...

http://www.ausiris.co.th/en/index.php

Edited January 18, 2011 by cloudhopper

[Naam]

I am just looking for a calculation that will explain the spot price per gram of pure Swiss gold.

for the record: "Swiss gold" does not exist as far as your question is concerned your 10g CS gold bar has a value of 13,392 Thai Baht (assuming a gold trading shop is willing to buy it and applies the price of THB 19,700 per Baht weight you mentioned).

Thanks for your help. So you take the price quote for that day, example 19,700 and divide by 15.244 and that will tell you price per gram of 9999 gold?

Thanks again,

not exactly as you have to adjust the price because the THB 19,700 are for 965 and not 999 purity.

[ThaisGood]

I am just looking for a calculation that will explain the spot price per gram of pure Swiss gold.

for the record: "Swiss gold" does not exist as far as your question is concerned your 10g CS gold bar has a value of 13,392 Thai Baht (assuming a gold trading shop is willing to buy it and applies the price of THB 19,700 per Baht weight you mentioned).

Thanks for your help. So you take the price quote for that day, example 19,700 and divide by 15.244 and that will tell you price per gram of 9999 gold?

Thanks again,

not exactly as you have to adjust the price because the THB 19,700 are for 965 and not 999 purity.

Hi. Thanks for your advice. Two questions:

1. Have you ever sold bars of gold in Thailand yourself? Just wondering how you know this and if you are really certain of it. Sorry to ask.

2. Please confirm the calculation. 19,700 / (15.244 x .965) = 1339 that is correct right?

Thanks!

[Naam]

1. Have you ever sold bars of gold in Thailand yourself?

2. Just wondering how you know this and if you are really certain of it.

1. i have never bought nor sold gold bars in Thailand. my wife has bought gold bars in Thailand and a bunch of other countries but she never sells, respectively she claims that she will never sell.

2. simple maths is "certain" and does not require practical gold trading experience.

[ThaisGood]

1. Have you ever sold bars of gold in Thailand yourself?

2. Just wondering how you know this and if you are really certain of it.

1. i have never bought nor sold gold bars in Thailand. my wife has bought gold bars in Thailand and a bunch of other countries but she never sells, respectively she claims that she will never sell.

2. simple maths is "certain" and does not require practical gold trading experience.

OK thanks a lot for your help. I believe your calculation is correct however I want to get feedback, if possible, from actual sellers. I know this forum reaches a wide audience.

If anyone here has actually sold 9999 gold bars in Thailand, and did due diligence prior to selling to ensure that the price you got was same as you expected, please kindly confirm above mentioned calculation and if the newspaper quotation is relevant for individual sellers.

[flying]

If anyone here has actually sold 9999 gold bars in Thailand, and did due diligence prior to selling to ensure that the price you got was same as you expected, please kindly confirm above mentioned calculation and if the newspaper quotation is relevant for individual sellers.

Cloudhopper gave you everything you need to know

http://www.ausiris.co.th/en/index.php

Note that site gives the prices for both 96.5 & 99.99 gold

It also gives you prive in Baht & grams

You cannot do better than that.

The gold shop will buy gold be it 99.9 or 96.5 prices are adjusted appropriately & as Naam said at that point basic math will give you your answers

[ThaisGood]

If anyone here has actually sold 9999 gold bars in Thailand, and did due diligence prior to selling to ensure that the price you got was same as you expected, please kindly confirm above mentioned calculation and if the newspaper quotation is relevant for individual sellers.

Cloudhopper gave you everything you need to know

http://www.ausiris.co.th/en/index.php

Note that site gives the prices for both 96.5 & 99.99 gold

It also gives you prive in Baht & grams

You cannot do better than that.

The gold shop will buy gold be it 99.9 or 96.5 prices are adjusted appropriately & as Naam said at that point basic math will give you your answers

Hi Flying. Thanks. Everyone who has posted has been very helpful and I appreciate your post. The website ausiris.co.th is great, I bookmarked that. I like how they break down the price by gram.

There is still some mystery though, pardon me for continuing the conversation. I understand that ausiris.co.th is expressing the spot price of gold by posting a "buy" price and a "sales" price, separated by a tiny margin. I believe this is the equivalent of "bid" and "ask". Bid and Ask are important concepts but neither represent the price that a shop will pay to buy a bar of gold, or what they charge to sell me a bar of gold. ausiris.co.th might report 1356 per gram for 9999 gold, but if you walk into a shop, do they really sell for that price? If you sell a shop the same gold bar, what will they pay for it? This is what I want to know.

If I walk into a gold shop here in USA and offer to SELL THE SHOP a 1 oz bar of 9999 gold, usually I can get the full spot price for that gold. Maybe $10 under spot, but never more than $10 over spot. Most shops here SELL TO CUSTOMERS gold for about $50 over spot price. This is how they make money. Sometimes, because I am a regular customer, if a shop is a bit long on gold bars, or there has been a recent price jump, they will sell to me based on spot plus a smaller margin, about $10.

When I traveled to Australia, I took along some gold, and went into a few shops, and they offered to buy this bar based on 97% or 98% of the spot price. I am not sure what the Aussie shops sell for, but probably more than $50 over spot. Everything is expensive in Australia it seems.

When I travel to Thailand, I bring along US$100 bills and exchange them at the airport for Thai baht. I believe the bank is earning about 1% commission on that, so I lose 1%.

I wonder, if I purchase a few gold bars before my trip, bring them to Thailand and sell to a reputable shop, will they pay me 98% of spot as in the case of Australia? Will I get 100%? If I get 100%, I can have the satisfaction of not paying a bank 1%, and I can carry real money with me (gold).

Also, when someone buys a 9999 gold bar in Bangkok, do they pay spot +1%? What is the general feel for the market there on the "over spot" amount merchants charge?

Thanks for any further info, and thanks again for the ausiris.co.th website.

[flying]

Hi Flying. Thanks. Everyone who has posted has been very helpful and I appreciate your post. The website ausiris.co.th is great, I bookmarked that. I like how they break down the price by gram.

There is still some mystery though, pardon me for continuing the conversation. I understand that ausiris.co.th is expressing the spot price of gold by posting a "buy" price and a "sales" price, separated by a tiny margin. I believe this is the equivalent of "bid" and "ask". Bid and Ask are important concepts but neither represent the price that a shop will pay to buy a bar of gold, or what they charge to sell me a bar of gold. ausiris.co.th might report 1356 per gram for 9999 gold, but if you walk into a shop, do they really sell for that price? If you sell a shop the same gold bar, what will they pay for it? This is what I want to know.

If I walk into a gold shop here in USA and offer to SELL THE SHOP a 1 oz bar of 9999 gold, usually I can get the full spot price for that gold. Maybe $10 under spot, but never more than $10 over spot. Most shops here SELL TO CUSTOMERS gold for about $50 over spot price. This is how they make money. Sometimes, because I am a regular customer, if a shop is a bit long on gold bars, or there has been a recent price jump, they will sell to me based on spot plus a smaller margin, about $10.

When I traveled to Australia, I took along some gold, and went into a few shops, and they offered to buy this bar based on 97% or 98% of the spot price. I am not sure what the Aussie shops sell for, but probably more than $50 over spot. Everything is expensive in Australia it seems.

When I travel to Thailand, I bring along US$100 bills and exchange them at the airport for Thai baht. I believe the bank is earning about 1% commission on that, so I lose 1%.

I wonder, if I purchase a few gold bars before my trip, bring them to Thailand and sell to a reputable shop, will they pay me 98% of spot as in the case of Australia? Will I get 100%? If I get 100%, I can have the satisfaction of not paying a bank 1%, and I can carry real money with me (gold).

Also, when someone buys a 9999 gold bar in Bangkok, do they pay spot +1%? What is the general feel for the market there on the "over spot" amount merchants charge?

Thanks for any further info, and thanks again for the ausiris.co.th website.

It can be a bit confusing & for the record I buy all my gold & silver in the US & pay premiums on coins of course.

The site CH linked has to be studied too. The grams are actually still a baht (weight) price

& the baht is gram price....Seems they have it confused...But as you can see by conversion it does in fact have a premium already installed

For instance they quote 20600 for 99.99 gold

There is roughly 2.07 Baht to a troy ounce so 20600 x 2.07 = 42642. Baht or $1398.42 USD when gold spot sits at roughly $1374.20 as I type this

The buy & sales or sell is just that in Thailand what they pay & what they sell. Of course with jewelry there is sometimes a fee for workmanship etc & it may be different than bullion pricing. Again I buy in the US so perhaps someone buying bullion in Thailand will chime in.

In the US we sell at spot to dealers no less...

(at least I dont although I usually swap ie: silver for gold & later gold for silver depending on the ratio) & buy at + premium depending on coins ( maples, Eagles, Krug's etc ) or Bullion bars.

If your thinking you will make $$$ by buying in the US & selling in Thailand..... I would be surprised.

Gold is Gold & sold accordingly worldwide based on spot & of course recalculated if not 99.99%

Of course my example assumes a static price ( which we know any commodity is not static )& that is not to say you could not buy at 1400 USD & get to Thailand & the spot price has risen to 1450 & of course the opposite is true too

Edited January 19, 2011 by flying

[ThaisGood]

If your thinking you will make $$$ by buying in the US & selling in Thailand..... I would be surprised.

Gold is Gold & sold accordingly worldwide based on spot & of course recalculated if not 99.99%

Hi. Thanks. My thinking is not to make money in some sort of buy/sell trade.

I am looking for alternatives to the current system. I now take US$100 bills to Thailand, instantly lose 1% via bank commission when I convert to baht.

What if I find a good deal on 9999 bars and buy them at spot. Then go to Thailand, and sell those bars for Thai baht. I understand that gold price fluctuates. But will I get 100% of prevailing spot price when I sell to the shop in Thailand?

I was not so happy with 98% in Australia, but I didn't mind really that much. I would do it again. In my opinion gold is on an upward trend anyway. I like to carry it with me overseas.

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

[Naam]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

[ThaisGood]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

Hi. Thanks. I did not know that there is a duty if you enter Thailand with a small amount of gold. I wouldn't bring more than a relatively small amount, just to pay for hotel, etc. If I were stopped upon entry in Thailand, and my bags searched, that would be the first time such event happened. Between my wife and I we have traveled in and out on a yearly basis probably 30 times between us, maybe more than that. We're getting old!

If the customs department noticed a few small gold bars among our carry on bags, I would be surprised. However, you make a good point. There are Canada Maple Leaf coins which have a face value, and they are made of pure gold. I have some 1/10 oz, 1/4 oz, and 1/2 oz of those. The face value is like $5, $10, $20. I know that people take Canadian maple leaf gold coins to India on trips back to see family, and they never have a problem because there is a face value on the coin. The advantage of bars is that I can buy them at nearly spot value. Canada coins have a premium of $20-$50 per coin, and I don't think a Thai shop will pay that premium (?).

Overall, I think getting my gold seized upon entering Thailand is a very minor concern. So minor, I would take the risk for sure. Do you know the official response if I were found to be carrying 50 grams of gold at the airport? It almost seems comical that this is an issue of concern. I have not personally heard of anyone having a problem entering Thailand with valuables. I am sure there are some stories though. What do you know about this?

Edited January 19, 2011 by ThaisGood

[Naam]

I know that people take Canadian maple leaf gold coins to India...they never have a problem because there is a face value on the coin...

another fairy tale which is widely published but not applicable because customs people care a dàmn about face value but consider monetary value and "value of negotiable monetary instruments" which applies to the actual value of a gold or any precious metal coin and bar. even in Europe the face value/legal tender story is not accepted since years.

by the way, the times that gold commanded a premium of up to 55% in India are gone since more than two decades. you can buy any gold coin in Mumbai, Delhi or Chennai for the same price which is charged in Toronto or Vancouver but Indian customs will not allow you to import duty free coins even if they are "legal tender".

[purushanti]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

Hi. Thanks. I did not know that there is a duty if you enter Thailand with a small amount of gold. I wouldn't bring more than a relatively small amount, just to pay for hotel, etc. If I were stopped upon entry in Thailand, and my bags searched, that would be the first time such event happened. Between my wife and I we have traveled in and out on a yearly basis probably 30 times between us, maybe more than that. We're getting old!

If the customs department noticed a few small gold bars among our carry on bags, I would be surprised. However, you make a good point. There are Canada Maple Leaf coins which have a face value, and they are made of pure gold. I have some 1/10 oz, 1/4 oz, and 1/2 oz of those. The face value is like $5, $10, $20. I know that people take Canadian maple leaf gold coins to India on trips back to see family, and they never have a problem because there is a face value on the coin. The advantage of bars is that I can buy them at nearly spot value. Canada coins have a premium of $20-$50 per coin, and I don't think a Thai shop will pay that premium (?).

Overall, I think getting my gold seized upon entering Thailand is a very minor concern. So minor, I would take the risk for sure. Do you know the official response if I were found to be carrying 50 grams of gold at the airport? It almost seems comical that this is an issue of concern. I have not personally heard of anyone having a problem entering Thailand with valuables. I am sure there are some stories though. What do you know about this?

There was a report in the past year at sovereignman.com (Simon Black) of a foreigner come to Thailand with gold that he did not declare, a sizeable amount, which was conficated, it is said, by customs. At the airport one day myself, I happened to pass by the customs office and inguired of the 2 ladies there what is the procedure. They did not know of this happening, and indicated confiscation would not not proper in such a case. (I am not saying that this answer is reliable enough.) The individual involved seems to have figured he had no other recourse but 'mai pen rai'. Simon' comment, in his basic website, not his premium website,

is, that if you are internationally transporting gold to a country in which the value in your baggage outweighs the local official's salary, watch out The whole question has been, and I think is occasionally continuing to be debated on Simon's premium site in at least one thread The thread also, in keeping everybody and every action legal, discusses the procedure of removing gold from a country, and options besides sticking it in your pocket.

[cloudhopper]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

It appears however that "monetary" gold is duty free. I don't know how this is defined but presumably this means modern coins like the eagle, panda, krugerrand etc. that have a nominal valuation in a national currency. I have no idea how liquid these might be here in LOS though c/w 965.

[ThaisGood]

There was a report in the past year at sovereignman.com (Simon Black) of a foreigner come to Thailand with gold that he did not declare, a sizeable amount, which was conficated, it is said, by customs. At the airport one day myself, I happened to pass by the customs office and inguired of the 2 ladies there what is the procedure. They did not know of this happening, and indicated confiscation would not not proper in such a case. (I am not saying that this answer is reliable enough.) The individual involved seems to have figured he had no other recourse but 'mai pen rai'. Simon' comment, in his basic website, not his premium website,

is, that if you are internationally transporting gold to a country in which the value in your baggage outweighs the local official's salary, watch out The whole question has been, and I think is occasionally continuing to be debated on Simon's premium site in at least one thread The thread also, in keeping everybody and every action legal, discusses the procedure of removing gold from a country, and options besides sticking it in your pocket.

Thanks for sharing the info. I am a fan of sovereignman, to a certain extent. Great website and his line of thinking is what I like to read.

I would never bring more gold value into Thailand than what I might use on a vacation. I should think that if I had 2 oz of gold, and I was stopped on entry and that small bit of gold was found in my possession I would explain it was for emergency use, and then offer to prove that I will take the gold out of Thailand when I leave. Should be no problem. It really seems ultra-paranoid to think you can't carry a few bits of gold with you when traveling. In fact, I really like carrying gold when traveling--it offers the security of knowing I should always be able to buy a ticket home in a shtf scenario. Most often I travel with gold and bring it home with me.

Back to what you mentioned, gold seizure at the airport. I wonder what the guy had on him. You might have heard of the American guy in Mexico who had over 100 krugerrands, all of it seized.

By the way I was at a coin show and found one of these, a rare gold coin from Thailand. I bought it.

http://www.davidlawrence.com/inventory/viewitem.cfm/inventory/175828/inm/Thailand%3A-1981-Gold-4000B-Year-of-the-Child-NGC-Proof-67-UCameo/snm/Thailand/gnm/Asia/auc/100/lotid/119109

Thaisgood

[Naam]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

It appears however that "monetary" gold is duty free. I don't know how this is defined but presumably this means modern coins like the eagle, panda, krugerrand etc. that have a nominal valuation in a national currency. I have no idea how liquid these might be here in LOS though c/w 965.

no it is not! "appearances" can be deceiving only a wee bit of logical thinking is required to realise that the nominal value of the coins mentioned has no bearing whatsoever on their actual value on which duty in a number of countries (including Thailand) is levied. that was the legal status end of 2004 and i doubt there was any change in the meantime.

[gregb]

Thailand is a nice country in that I can easily find buyers for gold, to convert to baht, but I wonder if they pay 100%.

you should rather wonder what percentage you will pay to Thai customs as opposed to the opinions of some learned TV-members you cannot import gold bars free of duty to Thailand :jap:

Would you care to elaborate on that Naam? Because the facts disagree with you...

Please check www.customs.go.th. Look under harmonized code 71.08. Gold bullion in all forms was exempted from tariffs in the customs act of 2530. Further, there is no VAT on gold. Beyond this, I have actually spoken with customs officials who confirm my understanding is correct.

And common sense tells you if this wasn't the case, there is no way gold could sell for the same price here in Thailand that it does on the international market. Clearly somebody is getting this stuff into Thailand free of customs and VAT, so it is highly unlikely that your opinion is correct.

At best, you may have to declare it if the value is over $20,000 USD. Beyond this, I believe you are spreading false information.

[Naam]

Beyond this, I believe you are spreading false information.

we received the "false" information from Thai Customs (via our clearing agent) that import duty is levied when gold in any form is imported by non-licensed parties. exceptions exist for

quote: "reasonable amounts of personal jewelry which unmistakably was produced using handicraft".

[gregb]

Beyond this, I believe you are spreading false information.

we received the "false" information from Thai Customs (via our clearing agent) that import duty is levied when gold in any form is imported by non-licensed parties. exceptions exist for

quote: "reasonable amounts of personal jewelry which unmistakably was produced using handicraft".

OK Naam,

Few of us are like you. We don't try and import tons of gold through shipping agents.

If you ask any customs official that works at an airport, they will tell you there is no customs duty and no VAT. The OP was talking about a gold bar of a few grams. So, while your agent may be correct that a license is required above a certain amount, few of us on this forum would ever need to fear reaching that limit.

There is obviously a disconnect between the way your agent interprets the rules, and the way the customs officials at the airport do. It obviously comes down to whether or not the amount can reasonably be considered a personal item, and I don't doubt that a customs agent would find your story of a briefcase full of gold for an afternoon at the mall somewhat incredulous.

So for the OP, simply carry your gold through the airport yourself. The officers there take a real world, practical approach. It will not be a problem. Thousands of people do this all the time. Naam lives in his own world where 60,000 baht is pocket change and a day of shopping for his trilingual gardener.

There is alot of confusion on this topic. The definitive source is the customs department. You can see the list of restricted and prohibited items that require a license to import here:

http://www.customsclinic.org/index.php?option=com_content&view=article&id=170&Itemid=175〈=en

Notice that gold is not mentioned at all, however it does refer you to the customs act for a list of restricted items. I believe many people who are providing incorrect information are using regulations that are out of date. The customs acts are subject to change though, so best to inquire of an official at the airport if you have any doubts.

From that page:

These categories are frequently changed through notifications of the Ministry of Commerce.

Edited January 20, 2011 by gregb

[Naam]

If you ask any customs official that works at an airport

yada... yada... does not generate correct results. will that customs official give me a valid legal document that i can take a gold bar or gold coins (which are legal tender) without paying duty into the country? and if he is not able to do so but says "no plobrem!" will his colleague, who is on duty next time when i arrive, agree with this verbal assurance?

The OP was talking about a gold bar of a few grams.

in 2004 our clearing agent did not "interprete" anything but cited information he got from customs. moreover, we did not plan to import "tons of gold" but a gold coin collection (31 coins out of which 27 were less than one ounce).

You can see the list of restricted and prohibited items...

i don't find on that list non-weapon grade Plutonium. is it therefore fair to assume that i can import a "reasonable personal amount" of 5 milligrams?

Edited January 20, 2011 by Naam

[ThaisGood]

in 2004 our clearing agent did not "interprete" anything but cited information he got from customs. moreover, we did not plan to import "tons of gold" but a gold coin collection (31 coins out of which 27 were less than one ounce).

Hi Naam. Did you decide not to bring the coin collection into Thailand? Or did you bring it and have problems at the airport?

[Naam]

in 2004 our clearing agent did not "interprete" anything but cited information he got from customs. moreover, we did not plan to import "tons of gold" but a gold coin collection (31 coins out of which 27 were less than one ounce).

Hi Naam. Did you decide not to bring the coin collection into Thailand? Or did you bring it and have problems at the airport?

no, we did not want to take any risk. not because we were afraid of paying any duties but because the collection was inherited, consisted mostly of antique coins with a high collector's value but a much higher sentimental value.

but here are my "closing arguments" on your opening post.

-of course the chances are extremely slim that customs will impound or create problems if you carry a couple of coins or two small bars with you.

-i was reporting customs regulations as they prevailed in 2004.

-my advice for you is to rethink your plan

I am looking for alternatives to the current system. I now take US$100 bills to Thailand, instantly lose 1% via bank commission when I convert to baht.

and realise that the gold price train might change its direction any time and you are caught on the wrong foot, i.e. within 20 calendar days from $1,421 to $1,346/ounce. taking the latter into consideration it seems to me that the 1% commission for cash is a bargain.

:jap:

[flying]

and realise that the gold price train might change its direction any time and you are caught on the wrong foot, i.e. within 20 calendar days from $1,421 to $1,346/ounce. taking the latter into consideration it seems to me that the 1% commission for cash is a bargain.

:jap:

Agree 101%

Bottom line nuff said

Nothing wrong with carring a oz or two for insurance as the OP mentioned.

But to use it to try & beat a 1% commission.......not so much

[ThaisGood]

-my advice for you is to rethink your plan

I appreciate all advice and I never turn it away. I regret to hear that you are unable to enjoy your sentimental coin collection, with you in Thailand. I have some coins of this nature myself, and I like to view them. I respect you for keeping old coins if they are from your family history. I can't tell you how many times I've been in a coin shop and some person walks in with an extremely well-organized gorgeous coin collection that their deceased grandfather accumulated over 60 years, and they just sell it for whatever they can get. I wish I had a collection like that, and I'd never sell it.

The basic question I have though is: do gold shops in Bangkok buy 9999 gold for spot price, or do they pay a percentage or two lower. So far that question has not been answered but I will find out myself and post here in the future.

Gold is a nice way to secure travel ability. As currencies fluctuate and my own country's $$ is being looted by ___ish financial criminals, I don't like the thought that I won't someday be able to travel because my currency has declined. So I like to buy gold bars for travel, among other things.

I always travel with gold, as mentioned, and of course I have credit/ATM cards and the standard $100 bills. I am a big boy now and I can decide if I want to sell a bit of gold for the prevailing spot rate, or exchange my paper dollars, or withdraw using ATM. Gold does have a nice advantage if you can sell for full spot price. I was just wondering if anyone here has personally sold a bar of gold, and at the moment the bar was sold, were you paid full spot price for it or did the buyer offer 2% lower, or something like that.

I suspect that Thai gold shops pay 100% for the assayed Credit Suisse bars, without any inconvenience, and it's a quick and easy cash transaction. To be continued...

[Fletcher]

-my advice for you is to rethink your plan

I appreciate all advice and I never turn it away. I regret to hear that you are unable to enjoy your sentimental coin collection, with you in Thailand. I have some coins of this nature myself, and I like to view them. I respect you for keeping old coins if they are from your family history. I can't tell you how many times I've been in a coin shop and some person walks in with an extremely well-organized gorgeous coin collection that their deceased grandfather accumulated over 60 years, and they just sell it for whatever they can get. I wish I had a collection like that, and I'd never sell it.

The basic question I have though is: do gold shops in Bangkok buy 9999 gold for spot price, or do they pay a percentage or two lower. So far that question has not been answered but I will find out myself and post here in the future.

Gold is a nice way to secure travel ability. As currencies fluctuate and my own country's $$ is being looted by ___ish financial criminals, I don't like the thought that I won't someday be able to travel because my currency has declined. So I like to buy gold bars for travel, among other things.

I always travel with gold, as mentioned, and of course I have credit/ATM cards and the standard $100 bills. I am a big boy now and I can decide if I want to sell a bit of gold for the prevailing spot rate, or exchange my paper dollars, or withdraw using ATM. Gold does have a nice advantage if you can sell for full spot price. I was just wondering if anyone here has personally sold a bar of gold, and at the moment the bar was sold, were you paid full spot price for it or did the buyer offer 2% lower, or something like that.

I suspect that Thai gold shops pay 100% for the assayed Credit Suisse bars, without any inconvenience, and it's a quick and easy cash transaction. To be continued...

I understood that gold shops in thailand only give you 100% on gold they stamped themselves, and slightly less for gold stamped from another shop. Quite sure you won't get 100% for CS stamped. Still it would be interesting to find out what results you get. So please let us know.

[Bpuumike]

If anyone here has actually sold 9999 gold bars in Thailand, and did due diligence prior to selling to ensure that the price you got was same as you expected, please kindly confirm above mentioned calculation and if the newspaper quotation is relevant for individual sellers.

Cloudhopper gave you everything you need to know

http://www.ausiris.co.th/en/index.php

Note that site gives the prices for both 96.5 & 99.99 gold

It also gives you prive in Baht & grams

You cannot do better than that.

The gold shop will buy gold be it 99.9 or 96.5 prices are adjusted appropriately & as Naam said at that point basic math will give you your answers

Hi Flying. Thanks. Everyone who has posted has been very helpful and I appreciate your post. The website ausiris.co.th is great, I bookmarked that. I like how they break down the price by gram.

There is still some mystery though, pardon me for continuing the conversation. I understand that ausiris.co.th is expressing the spot price of gold by posting a "buy" price and a "sales" price, separated by a tiny margin. I believe this is the equivalent of "bid" and "ask". Bid and Ask are important concepts but neither represent the price that a shop will pay to buy a bar of gold, or what they charge to sell me a bar of gold. ausiris.co.th might report 1356 per gram for 9999 gold, but if you walk into a shop, do they really sell for that price? If you sell a shop the same gold bar, what will they pay for it? This is what I want to know.

If I walk into a gold shop here in USA and offer to SELL THE SHOP a 1 oz bar of 9999 gold, usually I can get the full spot price for that gold. Maybe $10 under spot, but never more than $10 over spot. Most shops here SELL TO CUSTOMERS gold for about $50 over spot price. This is how they make money. Sometimes, because I am a regular customer, if a shop is a bit long on gold bars, or there has been a recent price jump, they will sell to me based on spot plus a smaller margin, about $10.

When I traveled to Australia, I took along some gold, and went into a few shops, and they offered to buy this bar based on 97% or 98% of the spot price. I am not sure what the Aussie shops sell for, but probably more than $50 over spot. Everything is expensive in Australia it seems.

When I travel to Thailand, I bring along US$100 bills and exchange them at the airport for Thai baht. I believe the bank is earning about 1% commission on that, so I lose 1%.

I wonder, if I purchase a few gold bars before my trip, bring them to Thailand and sell to a reputable shop, will they pay me 98% of spot as in the case of Australia? Will I get 100%? If I get 100%, I can have the satisfaction of not paying a bank 1%, and I can carry real money with me (gold).

Also, when someone buys a 9999 gold bar in Bangkok, do they pay spot +1%? What is the general feel for the market there on the "over spot" amount merchants charge?

Thanks for any further info, and thanks again for the ausiris.co.th website.

98% of spot is about as good as you will get anywhere in the world. I seriously question your tactics though. I would not be carrying gold bars, whatever the size, around Bangkok or any other city and it is not a realistic way to convert your currency as the buy/sell spreads make it too expensive. Cash from an ATM will cost 7%-9% on European cards. Your best best nowadays are the good old travellers cheques which are getting more popular simply because of bank charges. In the UK for example, you can buy travellers cheques with zero commission from post offices. You will notice in Thailand that TC's have a slightly better rate than currency notes and this offsets the stamp duty.

Buy lots of gold (silver more so) by all means but tuck it safely away for another day. It is not a feasible way to carry around as travelling money.