Interesting Perspective On Thai Gold Jewellery!

[rockyysdt]

New to the subject I visited a Thai Gold Jewelry store to enquire about a gold necklace.

Being price sensitive, the salesman started from the cheapest end showing me a necklace weighing 3 gm.

This necklace, at 6,800 baht, was well proportioned but very fragile due to its 23 carat composition.

A more robust example, the next thickness, 5 gm, looked too thick and out of proportion for me.

I asked about 18 carat but he said this is Thailand.

I indicated 18 carat was more practical as a chain and far stronger.

He showed me an 18 carat necklace he was wearing.

He had bought it from a foreigner.

Not only did he like its higher strength, but he also preferred its color.

Thais seem to be limitied to the higher carat rating but impracticality in terms of strength?

[Soutpeel]

I think you miss point, it that gold in Thailand is not just only seen a jewelry, but a means to store/show/create wealth, therefore they want the highest gold content possible....I mean is gold bullion 18ct gold ? because is more "durable" and looks pretty....no its 99.9% gold

[pattayadingo]

Most of the Thai gold is not for decoration but to be bought or acquired and put away for the future, a rainy day or for 'face' value, so the strength of the item is not so important.

[BngkkB]

It's true they are limited to a higher quality gold then in the USA or Europe, but overall the Thai market offers a better value then either the USA or Europe. You also have to remember that the gold market in Thailand is also used differently then in the USA or Europe. Here gold is traded like cash, people trade gold on speculation and also use it as a quickly liquidated item in case of financial emergency.

[BigJohnnyBKK]

If you want to buy Thai gold, the top shop is Hua Seng Heng in Chinatown. There are some others that are also 100% trustworthy, but they're the top, and usually crowded so get there early and be prepared for a bit of scrum to get served.

Gold is by weight + a flat fee for the workmanship. When you need the cash back they'll give you the same price less I think B200, but based on the current price of gold. Make up for the softness of the more pure gold by purchasing heavier chains, the simpler designs are stronger than the finely wrought more complex ones.

Careful about you (or your teerak) wearing such valuables in public, increasing instances of snatching over the past few years.

And note you won't get nearly the same cash price in the west due to the non-standard purity. But here in Thailand it's a very low cost way to store value and speculate on the gold price, as long as you're OK with the risk as opposed to keeping your cash in the bank.

Greatest advantage is it makes you think twice before spending it, and most Thais need that help with the self-discipline.

This is by far the best gift you can give a Thai, never mind about the western more of putting more thought into "personal" gifts. My MIL has taken care of and fed my kids when I'm skint for many months over the years and I reckon once I get flush again I'll give her a couple of baht's worth to express my gratitude.

She'll probably end up leaving it to them in her will anyway knowing her, I sure hope she doesn't give it to the mother of my children or it'll be sold off for a new iPhone by the end of the month. . .

[barefoot1988]

strength wise im uncertain but i do prefer thai gold color. dont really fancy wearing gold anyway only buys them for my wife. gold makes me look some pimp or gangster . . be it bracelet, chains or rolex . .

[astral]

Gold is by weight + a flat fee for the workmanship. When you need the cash back they'll give you the same price less I think B200, but based on the current price of gold. Make up for the softness of the more pure gold by purchasing heavier chains, the simpler designs are stronger than the finely wrought more complex ones.

That is the general rule in any gold shop in any town or village in the Kingdom

No need to rush to China Town

The gold price is quoted in the newspapers, so easy to check

[BigJohnnyBKK]

That is the general rule in any gold shop in any town or village in the Kingdom No need to rush to China Town The gold price is quoted in the newspapers, so easy to check

Hua Seng Heng does have other locations, Seacon Square for example, I'm not sure outside of BKK. And as I said there are a few other shops with as solid a reputation.

This means that other shops - even outside of Bangkok - will also give a very solid price if you go to sell or pawn a Hua Seng Heng piece. This is very much not the case for no-name shops, you'll very often be offered only 80-90% of the purchase price, sometimes even less.

In fact there is a fair bit of scamming generally in that industry as you can imagine.

Furthermore, it is very unusual to have such a tiny spread between the buy and the sell price - where the workmanship surcharge is included in the redemption price.

I'd be happy to learn more about the other reputable shops, as in fact I know very little about the topic in general, just sharing what I've learned so far.

Edited June 14, 2012 by BigJohnnyBKK

[vtjforyou]

Oh! Something new to learn today :-)

[barefoot1988]

may i ask something that is out of the topic? been wondering, does thai gold have the highest percentage of gold in their jewelries? 96.5%?

i could vaguely remember the gold i had seen in hongkong are actually lower in % but cost more than thai gold, is that due to the workmanship or there is some materials that justify the cost?

[BigJohnnyBKK]

may i ask something that is out of the topic? been wondering, does thai gold have the highest percentage of gold in their jewelries? 96.5%?

i could vaguely remember the gold i had seen in hongkong are actually lower in % but cost more than thai gold, is that due to the workmanship or there is some materials that justify the cost?

Direct labor costs, shop rents and sales/admin staff and other overheads, not to mention owners' required profits per month are all much much higher in HK.

Don't know about relative purity.

[Naam]

Thais seem to be limitied to the higher carat rating but impracticality in terms of strength?

Thais and most other Asians don't believe in the same rubbish 18 carat fairy tales in which you believe

[Naam]

may i ask something that is out of the topic? been wondering, does thai gold have the highest percentage of gold in their jewelries? 96.5%?

i could vaguely remember the gold i had seen in hongkong are actually lower in % but cost more than thai gold, is that due to the workmanship or there is some materials that justify the cost?

you can even get 24k jewelry.

[YipYipYa123]

may i ask something that is out of the topic? been wondering, does thai gold have the highest percentage of gold in their jewelries? 96.5%?

i could vaguely remember the gold i had seen in hongkong are actually lower in % but cost more than thai gold, is that due to the workmanship or there is some materials that justify the cost?

you can even get 24k jewelry.

is thai " bog standard" gold the same as 24K gold in the west ?

[BigJohnnyBKK]

may i ask something that is out of the topic? been wondering, does thai gold have the highest percentage of gold in their jewelries? 96.5%?

i could vaguely remember the gold i had seen in hongkong are actually lower in % but cost more than thai gold, is that due to the workmanship or there is some materials that justify the cost?

you can even get 24k jewelry.

is thai " bog standard" gold the same as 24K gold in the west ?

In theory 24K is pure pure, I believe not used for jewellery, at least not the load-bearing portions.

Apparently the Thai gold standard 96.5 percent - if not exactly 23 carat then close enough.

Western jewellers reckon that's not durable enough, certainly not for rings, but even bracelets can break, hence IMO the need for the "chunky" style, heavier weight.

[rockyysdt]

Thais seem to be limitied to the higher carat rating but impracticality in terms of strength?

Thais and most other Asians don't believe in the same rubbish 18 carat fairy tales in which you believe

Hi N.

Not sure what you you mean about the tales?

It could be the way I worded my comment!

My purpose for the chain was to hang a beautiful pendant given to the GF.

The gold paint faded from the nasty fake chain she was using and she started to develop a skin rash.

I'm mindful of metal fatigue and breakage over time if 23 carat is used.

Hence the 18 carat solution which is not only stronger but cheaper as jewelry was the sole intention, not investment.

Naturally knowing what I've learned about the Thai market is excellent if my funds can extend to investment opportunities.

Edited June 14, 2012 by rockyysdt

[farang000999]

Thai yellow gold does look good at all. Chinese Thais and wealthy Thais do not wear it in my experience. Chinese Thais buy it and save it as an investment. I think it is mostly rural types for whom wearing yellow gold is important. Also, I think many farang and Thais will form an opinion about a farang or mia farang they see decked out in yellow gold. I would save that fashion statement for the village, not the city. Just my 2 satang.

Edited June 14, 2012 by farang000999

[rockyysdt]

Thai yellow gold does look good at all. Chinese Thais and wealthy Thais do not wear it in my experience. Chinese Thais buy it and save it as an investment. I think it is mostly rural types for whom wearing yellow gold is important. Also, I think many farang and Thais will form an opinion about a farang or mia farang they see decked out in yellow gold. I would save that fashion statement for the village, not the city. Just my 2 satang.

Precisely.

That's why a fine 3 gm, 18 carat, normal looking gold necklace would be quite elegant and understated.

Unlike a garishly thick pink/yellow gold chain.

For investment, I'd go the gold bars/bullion.

[simple1]

Thais seem to be limitied to the higher carat rating but impracticality in terms of strength?

Thais and most other Asians don't believe in the same rubbish 18 carat fairy tales in which you believe

Hi N.

Not sure what you you mean about the tales?

It could be the way I worded my comment!

My purpose for the chain was to hang a beautiful pendant given to the GF.

The gold paint faded from the nasty fake chain she was using and she started to develop a skin rash.

I'm mindful of metal fatigue and breakage over time if 23 carat is used.

Hence the 18 carat solution which is not only stronger but cheaper as jewelry was the sole intention, not investment.

Naturally knowing what I've learned about the Thai market is excellent if my funds can extend to investment opportunities.

I think you will find the GF will be a lot happier with Thai gold, rather than 18 carat. Don't get me wrong but 18 carat has a lot less resale value in Thailand.

[rockyysdt]

I think you will find the GF will be a lot happier with Thai gold, rather than 18 carat. Don't get me wrong but 18 carat has a lot less resale value in Thailand.

Well, she absolutely loved the 18 carot gold ring set with a lovely pearl.

(She's aware it's 18 carot.)

Beautifully proportioned and elegant.

I'm not really interested in people whose relationships are based on monetary value.

Edited June 14, 2012 by rockyysdt

[Soutpeel]

Hence the 18 carat solution which is not only stronger but cheaper as jewelry was the sole intention, not investment.

and if for a Thai lady also gets you the title of Kee Nok Farang as well to boot...

[farang000999]

my wife is more into diamonds than gold but of couse if she gets a ring it will be white gold and that will be 18k caret gold. i dont know about yellow 18k gold but there is plenty of white 18k gold around and this is what is used in earrings, rings, necklaces but the main feature is the diamonds. best of luck. truly it is a terrible "investment" financially but women are gonna women so....

Edited June 14, 2012 by farang000999

[rockyysdt]

Hence the 18 carat solution which is not only stronger but cheaper as jewelry was the sole intention, not investment.

and if for a Thai lady also gets you the title of Kee Nok Farang as well to boot...

Is that the bird variety or just stingy?

Again, greed doesn't bring happiness.

I would hope my behavior in life is not ruled by what others may think.

What another thinks is up to them.

[kerryk]

This is a great question. If anyone answers negatively about 23 carat Thai gold it is the same as saying, "I don't have a clue about Thai culture." And 23 carat gold as opposed to white gold is, "I really don't have the slightest clue about Thai culture." Normal men figure out the gold thing in about 6 weeks.

[damo]

The jewellry is soft, but if you are sensible, eg: not wearing whilst playing sport, you will be O.K. allthough I would'nt recommend a wedding band as the soft gold is in a bad place on ones body for soft gold.

I took the Mrs once to buy gold, looked at the price of 2 baht, gave her that much cash and told her to buy whatever she wanted. She was very happy.

Please don't take this as being derogatory in any way but to most Thai men and women the style of the peice is somewhat irrellevant, it's the price paid for it and the potential for capital gain that matters.

[rockyysdt]

Here gold is traded like cash, people trade gold on speculation and also use it as a quickly liquidated item in case of financial emergency.

Recent world economic troubles (2009 Global Financial meltdown, current world recession, and impending European problems), have propelled the price of gold through the roof.

Gold has never been this high.

When things get better and confidence in the $ and property is restored, gold prices will plunge.

Gold is only currently high due to the fear of holding cash/shares.

When the Gold price eventually tumbles, how will that help those who have purchased at record prices?

[damo]

Here gold is traded like cash, people trade gold on speculation and also use it as a quickly liquidated item in case of financial emergency.

Recent world economic troubles (2009 Global Financial meltdown, current world recession, and impending European problems), have propelled the price of gold through the roof.

Gold has never been this high.

When things get better and confidence in the $ and property is restored, gold prices will plunge.

Gold is only currently high due to the fear of holding cash/shares.

When the Gold price eventually tumbles, how will that help those who have purchased at record prices?

Gold n September 2011 was USD300 more than it is now, I personally believe gold as been doing what your talking ablout for a little while now and to answer you question how will that help those who have purchased at record prices? The answer is it won't, and it' does'nt have to.

[farang000999]

Here gold is traded like cash, people trade gold on speculation and also use it as a quickly liquidated item in case of financial emergency.

Recent world economic troubles (2009 Global Financial meltdown, current world recession, and impending European problems), have propelled the price of gold through the roof.

Gold has never been this high.

When things get better and confidence in the $ and property is restored, gold prices will plunge.

Gold is only currently high due to the fear of holding cash/shares.

When the Gold price eventually tumbles, how will that help those who have purchased at record prices?

well the question is if the governments of the world will ever reach a point where they can stop supporting their markets, assets and people by the means of inflationary money expansion. we certainly do not appear to have reached their point. i do agree that when things get better, gold will decline in price. the question is "if".

Edited June 14, 2012 by farang000999

[farang000999]

This is a great question. If anyone answers negatively about 23 carat Thai gold it is the same as saying, "I don't have a clue about Thai culture." And 23 carat gold as opposed to white gold is, "I really don't have the slightest clue about Thai culture." Normal men figure out the gold thing in about 6 weeks.

I think you mean Isaan culture.

Why don't you go google some photos of some very famous and very wealthy Thai people or perhaps a TV Awards ceremony and see how much "White Gold + Diamonds" vs "Thick Yellow Gold" you see them wearing.

But of course, we know where you conduct all your surveys Kerry, and yes, Thick Yellow Gold is much more popular to those type of women.

As others have mentioned, there is a very logical reason why many nations use 18k for gold jewelry and use .9999 gold bullion for investment.

Anyways, I would love to invite you to visit the diamond jewelers in paragon or central world or mbk or anywhere else and ask them about white gold and 18k and the social status of their customers (all clueless farang surely)... but don't forget to change out of the Singha tank top first.

[kerryk]

This is a great question. If anyone answers negatively about 23 carat Thai gold it is the same as saying, "I don't have a clue about Thai culture." And 23 carat gold as opposed to white gold is, "I really don't have the slightest clue about Thai culture." Normal men figure out the gold thing in about 6 weeks.

I think you mean Isaan culture.

Why don't you go google some photos of some very famous and very wealthy Thai people or perhaps a TV Awards ceremony and see how much "White Gold + Diamonds" vs "Thick Yellow Gold" you see them wearing.

But of course, we know where you conduct all your surveys Kerry, and yes, Thick Yellow Gold is much more popular to those type of women.

As others have mentioned, there is a very logical reason why many nations use 18k for gold jewelry and use .9999 gold bullion for investment.

Anyways, I would love to invite you to visit the diamond jewelers in paragon or central world or mbk or anywhere else and ask them about white gold and 18k and the social status of their customers (all clueless farang surely)... but don't forget to change out of the Singha tank top first.

Ya right. Write it down and get back to me in 10 years. You'll laugh at yourself then. No insult intended but I got here in 1968. Some things never change. Issan? Perhaps you want to look at the gross amount of gold sold in baht in Thailand for a year. Take a look at the amount of jewelry stores in Bangkok. Where is 90% of the gold sold in Bangkok? There is 1% Wealthy and famous and 99% Thai people. Or turn it into actual numbers of people.