Thai Gold Pricing Vs World Spot Price

[jayinoz]

Hi Guys,

As been discussed a few times and I wish to give my views on Thai gold Vs spot price. Not hedging but holding physical commodity.

Soros bought a fortune a year ago when telling the world Gold was to take a DIP- he doubled holdings at the same time- dirty Bart$%# (Wish I was him- Lol)..... India just bought TONNES more. Emerging economies want MORE- as who trusts the NON BACKED USA $ to be the world standard anymore. We all want more GOLD and so does the whole world.

Whilst stock market finding FEET again I may what until GOLD down 10-20% again before loading up on 5 BT Thai bars.

Where are people getting the BEST physical price anywhere in the world?????? Thai must be one of a handful that offer close to SPOT price for physical holdings.

As Thai gold charges a 0% premium to market spot price most of the time. Yet depends on the time and place you get the gold in the store.... Sometimes need to be faster than the slowest stores- LOL but it true. For a quick 2-3% gain.

Some guys who are bearish on GOLD (Not many) or not in the know- sell theirs below PREMIUM to hold physically. Mostly in pawn shops, so pawn shops should be checked out if you know your stuff. As they will tell you 96.5% ring 30 gram ring when in fact much less in % and grams- so watch out.

Physical GOLD\SILVER\Platinum is always good in times like now- but if the economy does by some miracle in the next 2 years then GOLD back to under $1000 Oz.... plus silver $20. It all a hedge against the economy.

I feel the market will pick up very slowly yet with great volatility- being a stockbroker for over 10 years I seen nothing like this........only Grandaddy can tell me about Great Depression and research of this as similar but in many respects very different. I do believe we will see the days of $200 Silver and $5000 GOLD as a GOLD bull- IF the basket of currencies idea does not work that OPEC wishes to introduce without USA involved. The time of USA reign is coming to an end- exciting times. We know which 2 economies, especially China, will replace within the generation.

World standard I predict for 2025 is the YUAN- Lol. Probably not just possible- after we have a mixed back including US, Yuan, EU, etc. It will happen, only a matter of time. This story of US printing more money and one politician letting it slip that 11 TRILLION more $US will be printed over the next 3 years. Making USA deficit 25 TRILLION as opposed to 13-14 Trillion. 102% of GDP to probably 200% by then. That is default time in years to come- not yet no not just yet. They must look to have tried to have done the best they could over many years- a very slow bleed.

For GOLD\Silver means UP and UP over time with some volatility- the trend is your friend until it ends. Over $2000 Gold next year- very easy. Simply think is under $1000 more likely in 6 months of over $2000. My bet is on the latter and NO I will not tell you where I store the Gold\Silver bars. I think Silver will outperform GOLD for a few months until reaches 1:25 ratio then bounces back to 50 year average of 1:40. It is 1:45 ratio right now- so either or. Palladium and platinum I do not have as much knowledge but wishes to look into it more. Any thoughts on Platinum\Palladium coins\bars?

Also there is a GREAT place in BKK for Silver pellets of 92.5%- not pretty but the guys making the wholesale jewelery do not follow market value and simply store, so often pick up for under 5-10% below current market costs- silly them. I noticed expats offerring more and more Canadian 99.9 coins- wish I picked them up when offered a fair few at market rates a few months ago. BUT dam it I left mine and clients money mostly in stocks.... any stock recovery now that i been having a hard time by my expat and overseas clients in regards to their stocks I pick for them. As I say I have no control over the world- I wish I did. But we in great small capital and growing companies is the best I can do. Then comms with management and insiders is always good. Thai SET wise you need to pay for the info whether true or not- mostly not as they do not wish us Farangs to have an advantage and we not their mates. So I hesitant right now in the SET with the issues in the next few months.... I believe. REDS win then cannot form correct government then military gets Democrates back in- then issues on street etc. SET should not be well over 1000 pts IMO. But I have no crystal ball- just some instinct over time. As long as the instinct and info is right more than 50% of the time then you outperform- simple.

DO NOT SELL your gold\silver and other precious metals IMO. My 2 cents.

ANYWAY- on my main question 'How can I get less less than the premium Thai gold charges..........calculations below for the analytical;

WORLD Price approx. $1498 per Oz right now x 30.76 bt = 46078.5 baht

*** 1 Oz = International troy ounce 31.1034768

CONVERT to gram pricing = 46078.5 \ 31.1 = 1481.62 baht per gram (World Market price)

Thai pricing = 21950 baht per TH BT (15.244 grams)

Convert to gram pricing = 1421.63 per gram (Remember only 96.5%, not 999)

Add 3.5% to thai pricing = 1473 per gram ( Shockingly just a tiny fraction less than online market spot prices- can happen when GOLD going up- the other way when going down fast)

Anyway a 5 BHT THAI GOLD BAR (96.5%) = 21950bt x 5 = 109750 baht (Purchased in any retail shop in thailand- shop around if want fraction better). GOOD VALUE to hold the precious metal in physical form. Only 100-200bt between BUY\SELL price....

Or better still some may have some favourite places than offer slightly better- I find best to shop around but can go UP\DOWN with that time very easily.

Other thoughts if you feel I have the calculations wrong or you can do better............... Cheers JAY

References below (Current as of 10:30am today);

http://www.goldprice.org/

http://www.xe.com/uc...From=USD&To=THB

http://en.wikipedia.org/wiki/Thai_baht

Cheers JAY

Edited July 1, 2011 by jayinoz

[el jefe]

Can someone send me the Clif Notes.

:-)

[vont]

op

what are your intentions of posting?

you must really be a stocks broker occupying lots and lots of space with whatever you intend to say which can not be pinned down for substances....

so that you won't have to be accountable for whatever you said....

i always admire such ability.... cheers

[jayinoz]

op

what are your intentions of posting?

you must really be a stocks broker occupying lots and lots of space with whatever you intend to say which can not be pinned down for substances....

so that you won't have to be accountable for whatever you said....

i always admire such ability.... cheers

Lol..... yes sounded like I was going to sell something but it just thoughts in mind. Just back of napkin scribbles in those interested in purchasing Thai gold. I have no vested interest........... just wished some would 'have a go' at telling me the reasons WHY Thai gold sometimes below international spot price.

Thought i calculated wrong as most places you pay a good 5-10% premium to hold the hard commodity. Not so in Thailand.

Does not look to be a lot a profit in gold shops for the amount of investment required. The investment required is incredible to hold all that gold just to sell a few pieces per day. Or few 1000 pieces in China town and busy areas.

I must be missing something.... sure they get $$$ from rings, etc being the labor cost- near nothing.

Still cannot get my head around owning physical gold in vault in Thai often cheaper than buying SPOT price on the market. And not holding physically...

Although a Finance guy i am new to precious metals investments and learning as much as possible. As clients demands more security other than shares in these volatile times.

i been to 5 gold shops with my calculations and they state they get for less than International SPOT price- HOW and WHERE? Naturally 3 from 5 shops could not be bothered to answer my questions or had no idea.

Main earner I see for them is when they buy large amounts and the GOLD price keeps going up whilst it siting there. In times when going down it must be very hard business to make a profit.

Also why are MOST Thai gold shops Chinese\Thai owned?

Anyone buying in Thai then selling back in homeland- i will guess most not wishing to share that info as it probably a good earner if have the right people to offload to in homeland.

I been trying to find out the supposed taxes in exiting with thai gold- cannot find. As this can be the only reason for guys doing a 'Kit Run' as I heard it called.

Being chain, rings,etc to XYZ value for a quick 3-5% supposed profit... as one bragged he never paid an airfare due to kit runs. Now it may not be making 1000% like drug runs but must be rules in exiting with a lot of gold. Surely?

My misses very happy with knowing her 2 bt necklace\ring total is worth 300% what we bought it for a few years ago. Amazing. Wish all my investments went as well- Lol.

As stated no vested interest- just wanting more info from those more in the know than I......thanks.

Cheers Jay

[vont]

op

what are your intentions of posting?

you must really be a stocks broker occupying lots and lots of space with whatever you intend to say which can not be pinned down for substances....

so that you won't have to be accountable for whatever you said....

i always admire such ability.... cheers

Lol..... yes sounded like I was going to sell something but it just thoughts in mind. Just back of napkin scribbles in those interested in purchasing Thai gold. I have no vested interest........... just wished some would 'have a go' at telling me the reasons WHY Thai gold sometimes below international spot price.

Thought i calculated wrong as most places you pay a good 5-10% premium to hold the hard commodity. Not so in Thailand.

Does not look to be a lot a profit in gold shops for the amount of investment required. The investment required is incredible to hold all that gold just to sell a few pieces per day. Or few 1000 pieces in China town and busy areas.

I must be missing something.... sure they get $$ from rings, etc being the labor cost- near nothing.

Still cannot get my head around owning physical gold in vault in Thai often cheaper than buying SPOT price on the market. And not holding physically...

Although a Finance guy i am new to precious metals investments and learning as much as possible. As clients demands more security other than shares in these volatile times.

i been to 5 gold shops with my calculations and they state they get for less than International SPOT price- HOW and WHERE? Naturally 3 from 5 shops could not be bothered to answer my questions or had no idea.

Main earner I see for them is when they buy large amounts and the GOLD price keeps going up whilst it siting there. In times when going down it must be very hard business to make a profit.

Also why are MOST Thai gold shops Chinese\Thai owned?

Anyone buying in Thai then selling back in homeland- i will guess most not wishing to share that info as it probably a good earner if have the right people to offload to in homeland.

I been trying to find out the supposed taxes in exiting with thai gold- cannot find. As this can be the only reason for guys doing a 'Kit Run' as I heard it called.

Being chain, rings,etc to XYZ value for a quick 3-5% supposed profit... as one bragged he never paid an airfare due to kit runs. Now it may not be making 1000% like drug runs but must be rules in exiting with a lot of gold. Surely?

My misses very happy with knowing her 2 bt necklace\ring total is worth 300% what we bought it for a few years ago. Amazing. Wish all my investments went as well- Lol.

As stated no vested interest- just wanting more info from those more in the know than I......thanks.

Cheers Jay

jay

we always have to remind ourselves that thai gold contains less gold per se....

some gold shops selling to locals are not reluctant at all to sell gold classified as 90% as pure gold in thailand.... and there is their profit margin for one....

most gold shops are also making good profit from repurchasing finished gold at the discount of 3% - 5% or so.... depending on how they weight the jeweleries.... another avenue for profit....

many gold shops also act as money lenders....

you probably won't want to know all our secrets now.... do you? LOL

it depends.... on a good day, whence traffic is heavy and consistent.... the net net net from retails could go as high as six figure.... along JawWaRard....

and practically every day.... there are also bulk transactions from voices that we know and private lines that we recognize but faces that we never see....

well.... if you or anyone else wishes to know more.... let's say.... a 1% fee up front.... that is fair for a non professional newbie.... isn't it? LOL

are you certain that you and yours gold piece isn't a 92% piece.... rather than a .9999 pure stuff.... ? cheers and good day to you all

[jayinoz]

My calculations took into account that Thai gold is 96.5% and adjusted accordingly.

Not really concerned with all the avenues for Gold shop profits. Yet I do see 'sometimes' you can get a good deal in buying the bars here- if the especially out of town Gold shop not keeping track of current spot pricing.

Just 2 days ago- I saw 2 stores 30 metres from each other. One had BUY price of 21650 bt per Thai baht. The other was 22100.

In terms of weight- I been told to bring own micro gram weigh-er to the supposedly below standard pricing- as it is meant to be set in Thailand rom hour to hour.

Anyway interesting to investigate..... much like the silver pellets are sometimes far below spot price when they not selling much jewellery that week. Happens moreso in out of way places, other than busy areas I have found. Cheers JAY

[brd]

excellent with thanks JAYINOZ

[rufanuf]

Lol..... yes sounded like I was going to sell something but it just thoughts in mind. Just back of napkin scribbles in those interested in purchasing Thai gold. I have no vested interest........... just wished some would 'have a go' at telling me the reasons WHY Thai gold sometimes below international spot price.

Have you assayed the items your buying that might explain the differences? Find it hard to beleive the Thai/Chinese gold shop owners are not one step ahead of you! Ive not managed to make any savings typical spread 4% or so

[p_brownstone]

Not really concerned with all the avenues for Gold shop profits. Yet I do see 'sometimes' you can get a good deal in buying the bars here- if the especially out of town Gold shop not keeping track of current spot pricing.

“not keeping track of current .... pricing”.

Are you serious? Buying and Selling Gold is their business – how can you imagine they do not know the most basic and up-to-date information about it?

Just 2 days ago- I saw 2 stores 30 metres from each other. One had BUY price of 21650 bt per Thai baht. The other was 22100.

So – go into the shop (let’s call it shop “A”) which Posts the higher Buying price and try selling your Gold – insisting, of course, that the price shown in the window constitutes a contractual agreement as to the price you will receive.

Or do you imagine that you can go to shop “B”, buy at a slightly lower price then dash 30 meters to shop “A” and sell for a profit of a few hundred Baht per Baht weight?

In the big boys world it’s called “Arbitrage” – in Nakorn nowhere it’s called “sorry, I just checked on the Internet and my idiot Burmese girl forgot to update the prices shown in the window”.

In terms of weight- I been told to bring own micro gram weigh-er to the supposedly below standard pricing- as it is meant to be set in Thailand rom hour to hour.

Of course any Gold shop is going to allow you to bring in your own Balance and will happily accept whatever your – untested, uncertified – device determines the weight of Gold to be.

Patrick

Edited July 24, 2011 by p_brownstone

[Naam]

View Postp_brownstone, on Yesterday, 13:28 , said:

Of course any Gold shop is going to allow you to bring in your own Balance and will happily accept whatever your – untested, uncertified – device determines the weight of Gold to be.

why spoil "jayinoz'" entertaining fairy tale with facts?

[Tokay]

I know China Town is the place for gold, but where are the silver shops?

[JoeCard]

Hi Jay,

Interesting observation, thanks for sharing!

One question though, I understand shops would charge VAT on their transactions. Is this the case for Gold too?

Joe

[p_brownstone]

Hi Jay,

Interesting observation, thanks for sharing!

One question though, I understand shops would charge VAT on their transactions. Is this the case for Gold too?

Joe

There is no V.A.T. charged when purchasing physical Gold in Thailand.

Patrick

[jbeck]

is there any place in pattaya to buy gold or silver that anyone can recommend from experience?

I didn't read all the posts but I've been told that every shop has the same prices.. is it true?

thanks

Edited April 24, 2013 by jbeck