Safe, Inflation-beating Investment In Thailand?

[fxm88]

Are there any good, relatively safe, inflation-beating investments available in Thailand? The Bangkok Post says inflation is at 6% yet bank rates so bad I'm tempted to keep my money in my mattress. Preferably this investment would have a verifiable paper trail.

[Firefan]

There are some bonds occasionally up for sale with about 6% interest but they are very hard to get as sold out in minutes (no wonder with this inflation level!). It is also unclear to me whether foreigners can buy same.

Anybody knows of some of those bonds and how to purchase as a foreigner?

Cheers!

[Butterfly]

There is an excellent reason why rates are so low. This is an incentive for you to spend, not save. If you want to save, this has to be done in another currency.

Another option is to get Thai stocks that will pay high dividends (high dividend yield to be more precise). Some goes as far as 8% if you get in at the right time. Market is beatup now, maybe a good time to find candidates. Some of those stocks are very cheap.

I am pricing some of those stocks with our pricing model at 800% above their current level. It could take 2 or 3 years to reach those prices but the potential is definitely there. These are exceptions of course but most are still 15% to 40% underpriced. Some are still overpriced IMO (TRUE comes to mind) and deserve a beating.

[cclub75]

I agree with Butterfly : the best solution is a foreign currency deposit account, preferably outside the country like Singapore or HK (no income taxes).

Stocks, why not. But the SET is a tricky market, not very transparent...

Butterfly, what stock would you advise ? And which brooker are you using ?

[Dickie_Doo]

If only there was a guidebook to the Thai Stock Exchange for amateur investors...

It all seems so very complicated, but I am sure it is not so difficult with a little information.

[steveromagnino]

If only there was a guidebook to the Thai Stock Exchange for amateur investors...

It all seems so very complicated, but I am sure it is not so difficult with a little information.

<{POST_SNAPBACK}>

exactly what information are you after? financial performance and annual reports? all avaialable for the most part...er... press releases to the market? all available for the most part in english (AFAIK)...er.... price movements? Available ART (almost real time)

Just register with online broker, and most of this stuff comes out of the SET online trading "engine" that they all use.

However, if you mean about insider trading and all that bit...well that's another story

[Butterfly]

If only there was a guidebook to the Thai Stock Exchange for amateur investors...

It all seems so very complicated, but I am sure it is not so difficult with a little information.

<{POST_SNAPBACK}>

I saw one at the book shop the other day. Very nice. Had some kind of stars ranking for different stocks etc... a lot of useful info I couldn't find anywhere, even online, definitely a valuable resources. Can't remember the title. I might buy it next time I see it.

[naka]

Not much available to Farangs, and certainly nothing that is both 'safe'

and pays 6 percent. Best to keep your serious money offshore and

only bring in enough for your own requirements ( and immigration's )

if on a long term visa.

[Butterfly]

I agree with Butterfly : the best solution is a foreign currency deposit account, preferably outside the country like Singapore or HK (no income taxes).

Stocks, why not. But the SET is a tricky market, not very transparent...

Butterfly, what stock would you advise ? And which brooker are you using ?

<{POST_SNAPBACK}>

I am using Asia Plus Securities. They are OK. Cheap. They are about all the same.

Stock tips ? in that forum, that would be illegal

[fxm88]

I am using Asia Plus Securities. They are OK. Cheap. They are about all the same.

Stock tips ? in that forum, that would be illegal 

I too have an account with Asia Plus Securities but I must admit that I am not 100% comfortable with them mostly because they used to prominently display the ABN AMRO logo (a name I'm more familar with) but recently that association has been erased. Does anyone know why? Is it cause for my concern?

[Limbo]

I am using Asia Plus Securities. They are OK. Cheap. They are about all the same.

Stock tips ? in that forum, that would be illegal 

I too have an account with Asia Plus Securities but I must admit that I am not 100% comfortable with them mostly because they used to prominently display the ABN AMRO logo (a name I'm more familar with) but recently that association has been erased. Does anyone know why? Is it cause for my concern?

What I understand is that ABN-AMRO sold its majority share in Bank of Asia to a Singaporean owned bank (Radanakosin?).

Is Asia Plus Securities related to the Bank of Asia?

Limbo.

[hereforgood]

Not 6% but I keep most of my money in http://www.emigrantdirect.com/ now paying 4% insured to 100,000 and no Min this is a standard savings account not a time deposit of any kind

[Mr_Dave]

.

Worried about inflation?

Gold is making new highs against ALL major currencies.

That means gold is beating inflation in all major countries.

Also in Thailand.

Lots of gold here, and easy to buy.

But gold doesn't pay any interest.

So which is better:

6% interest whilst your capital is being eroded by inflation?

Or preserving your capital by holding some gold?

Up to you.

PS - Zero sales tax on gold purchases from gold shops in Thailand.

.

[Butterfly]

I am using Asia Plus Securities. They are OK. Cheap. They are about all the same.

Stock tips ? in that forum, that would be illegal 

I too have an account with Asia Plus Securities but I must admit that I am not 100% comfortable with them mostly because they used to prominently display the ABN AMRO logo (a name I'm more familar with) but recently that association has been erased. Does anyone know why? Is it cause for my concern?

<{POST_SNAPBACK}>

I feel the same. What happened is that last year, Asset Plus Securities bought out ABN AMRO and they did an IPO in the process to form Asia Plus Securities

I used to trade with Asset Plus, totally clueless, so I was worried when they took over. Never had a problem with ABN AMRO, so the take over was bad news for sure. For now it still seems ok. But who knows for how long.

In the process, ABN AMRO left Asia Bank. They wanted to be out of Thailand at all cost. I wonder why.

[Butterfly]

.

Worried about inflation?

Gold is making new highs against ALL major currencies.

That means gold is beating inflation in all major countries.

Also in Thailand.

Lots of gold here, and easy to buy.

But gold doesn't pay any interest.

So which is better:

6% interest whilst your capital is being eroded by inflation?

Or preserving your capital by holding some gold?

Up to you.

PS - Zero sales tax on gold purchases from gold shops in Thailand.

.

<{POST_SNAPBACK}>

Gold is for suckers, always been. Try silver, or other very rare metals

[fxm88]

Gold is for suckers, always been. Try silver, or other very rare metals

Can't go wrong with Uranium! Plus, it'll keep you warm on those cold winter nights.

[Butterfly]

Gold is for suckers, always been. Try silver, or other very rare metals

Can't go wrong with Uranium! Plus, it'll keep you warm on those cold winter nights.

<{POST_SNAPBACK}>

[naka]

I bought gold bullion 15 years ago and sold it last year for a loss

of US 100 dollars per ounce

[fxm88]

Here's an interesting article: Pessimists Buy Gold. Optimists Buy Copper. Although the price is unlikely to reattain its historical highs (in the Chalcolithic period), I'm thinking it'd make be a nice hedge in my portfolio. So the question becomes: Where can I pick up some copper in Thailand? Most all water pipes in the Kingdom are PVC. I think the power lines are copper, but I don't wanna get electrocuted. Any ideas?

[Khun ?]

GGN - Gabelli Global Gold,Nat Res&Income

GGN is kind of a gold bet. It has limited upside ( appreciation, due to writing puts and calls). 8% dividend, watch the NAV closely. Manager is a long time value investor

and I can't remember who the advisors were for the fund. Company website has info on June 05 filings. Due Diligence

Metals and Mining

53.20%

ENERGY AND UTILITIES

35.20%

U.S Government Obligation

10.10%

A better break down is on the company website as there is a 4% in paper and forestry.

www.gabelli.com

Good Luck

Edited November 15, 2005 by Khun ?

[Firefan]

Not a bad fund Khun. We are of course getting a bit off topic as presume we were looking for safe investment/interest income rather than gold/mining/energy bets but what the heck!

Here is the fact sheet:

http://www.etfconnect.com/select/fundPages...asp?MFID=142100

More can be found on the gabelli.com web site.

A new closed end fund. Resonable expense ratio. Currently trading about on par with the NAV. Ok diversification compared to other more specialized gold/metals funds (ASA/CEF when talking closed end funds or GLD if talking exchange traded fund).

Also the 8% yearly yield is paid out monthly making it good for investors wanting a monthly "income" (naturally they should not only rely on THIS fund!).

One needs to have access to US stock market though - and if one has that I would personally prefer the Vanguard fund VGPMX with less than half in expense ratio and a very good track record.

Just my 2 cents! Cheers!

[Khun ?]

VGPMX

5 years up and 5 years down. Not much income payment.

If the guy wants safe income try the I Bond it is doing ok at this time

tax deferred.

GGN pays monthly income. Income may be importatnt to someone that neeeds money to live on and this should allow the person to take a few bumps along the way in the markets. open end funds are a better choice as they only trade at one price per day at the NAV where as closed end funds trade like a stock and not on the NAV. Best if you can buy at a discount which mant do sell for. GGN also has a 5% discount for dividend reinvestment when it is not selling at a discount.

Let me add when you do dividend reinvestment on a monthly basis that is some good compounding and in a few years if the fund maintains its NAV it will be over a 10% income on original investment paying you monthly.

BGR is another good fund with about the best managers in the sector. Pays quarterly selling at a good discount now.

Edited November 15, 2005 by Khun ?

[Firefan]

Another monthly payer is GIM being another closed end fund with international bonds. One can add some TIP or SHY for some USA bond exposure - they both also pay monthly dividends.

Meanwhile if one wants to find alternatives here in Thailand - the options are certainly very limited.

Cheers!