Gold Set To Remain Above 9,000 Baht

[george]

Gold set to remain above 9,000 baht

BANGKOK: -- Gold prices have risen over the last five days, with the domestic price including the goldsmith fee exceeding 9,000 baht and expected to increase further well into next year on expectations of more hikes in interest rates, a weaker baht against major currencies and high oil prices.

``Retail gold trading is very quiet right now, as nobody is buying and selling,'' said Jitti Tangsithpakdi, president of the Gold Traders' Association and Chin Hua Heng Goldsmith outlet.

``Due to relatively expensive gold prices, buyers are reluctant to purchase, while sellers are waiting for the prices to go up further.''

The price of ornamental gold soared to 8,750 baht per baht-weight (15.2 grammes) since Sept 10 compared with 8,600 baht in early September. When taking into consideration the standard 300-baht goldsmith fee, it is 9,050 baht.

According to Mr Jitti, the gold price is expected to rise further over the next three months given the pressure from high oil prices, inflation and interest rates and foreign-exchange volatility.

``I think the gold price is more likely to rise than fall at present,'' said Mr Jitti.

He added that domestic gold prices were expected to swing over the next three months to reflect the world market.

However, he remains strongly confident that the domestic price is unlikely to surpass the 9,500-10,000 baht range this year.

Investment in gold has become more popular worldwide on the prospects of rising inflation, interest rates and oil prices.

Gold rose to hover around the psychologically important level of $450 an ounce in Asia yesterday, after a jump in crude oil prices stoked fears of inflation. Gains in Tokyo futures also lent support to gold, which may face resistance at $453.

Gold has shrugged off a firmer dollar and was gaining strength after pausing for breath since hitting a 2005 peak at $451.50 on Monday.

But despite the price gains, there has been no big change in gold imports to the extent that they could affect the country's current-account deficit, said Mr Jitti.

He said said gold imports now stood at 6-7 tonnes a month, reflecting real demand in the country rather than price speculation.

Over the last seven months, Mr Jitti said Thailand imported around 80 tonnes of gold, up slightly the same period last year. Imports for the whole year are expected to be lower than the projected 120 tonnes because of the high prices.

--Bangkok Post 2005-09-16

[LivinLOS]

And flirted with 460 per ounce on Friday...

Domestic pricing of 9500 is very likely IMHO.. Only needs to get to 475 - 480 USD per ounce and that looks possible if this technical break out sustains next week..

[AlexLah]

Told a lady friend of me (last year September) to buy as much gold as she could.

(She has about 4 million Bath in the bank). Her reply: No No No, gold expensive now......... Instead she bought a life insurance.........

KR,

Alex

[Martin]

Was going to put my 400,000 bahts of Immigration "Show Me Your Money" into gold last June.

My wife said "Oh, gold is so expensive now".

But I was still going to do it.

However the eldest lad got his 'degree' and then a newsreader/disc jockey job in Udon and we weren't happy about him walking back to his room, late at night, through a rather dodgy area.

So he now has my faithful 1994 Mazda and I have to trundle around in a new one-ton truck, half paid for with the Immigration money.

Not only do I have to save up the next dollop of Immigration money, but also I have missed out on an investment that would have brought in 8% in three months.

Dammit.

[spencerdharmagrafix]

Was going to put my 400,000 bahts of Immigration "Show Me Your Money" into gold last June.

My wife said "Oh, gold is so expensive now".

But I was still going to do it.

However the eldest lad got his 'degree' and then a newsreader/disc jockey job in Udon and we weren't happy about him walking back to his room, late at night, through a rather dodgy area.

So  he now has my faithful 1994 Mazda and I have to trundle around in a new one-ton truck, half paid for with the Immigration money.

Not only do I have to save up the next dollop of Immigration money, but also I have missed out on an investment that would have brought in 8% in three months.

Dammit.

<{POST_SNAPBACK}>

Who's idea was it to give the car to the oldest lad..and is it your oldest lad, or only your wife's?

I ask because my wife used to always have a better idea what to do with the money (pay her sister's debts off for example) than do something sensible like open a company, rent a shop and make some money.

I let her tell me what to do till we ended up bankrupt, after that i put my foot down and any money made now is captained by ME as the worst people to take financial advice from is a Thai wife! they see shopping malls in their heads every time they see more than 1000 baht in front of them. "whoopee"

Why didn't u get hime a nice little honda dream second hand for 15,000 baht instead..?

[Martin]

There are Thai wives and Thai wives, and they can be enormously different and have very different quantities of financial acumen. Just as there is a great range of falang husbands with very different quantities of chauvinism. I am very lucky that my wife has a far-sighted approach to our family finances, which saves us from the troubles that might come from my tendency to be slapdash about money.

It was a joint decision, as all our decisions are. We have always managed to delay making any decision until we are in agreement. Neither of us would want to be in any other sort of marriage.

Keeping the Mazda for us wasn't really on, as we are 50km from the city, and it was beginning to have the little breakdowns that older cars do (like alternators packing in and so on). Those are no great sweat if you are in the city. You can get towed in and it is all sorted out whilst you go shopping. But 45 km out, after dark, is a different matter. So getting the lad a little town car and us keeping the Mazda was an option that we quickly ruled out.

The Thai one-ton trucks with the four-door crew cab have a lot to be said for them, in that you get the ruggednes of a truck with the facilities of a car. However you also get the trundleness of a truck. For getting their time from 0 to 120, don't use a stopwatch, get a diary!!.