Gold Shortages In Cm Or Just Rumours?

[ThaiHerbs]

I keep reading about gold shortages being reported in Bangkok and Chiang Mai by non-Thai sources located outside the country. I do not find these shortages being reported in Thai media such as:

http://www.nationmultimedia.com/index.php

http://www.chiangmai-mail.com/

http://www.chiangmaipost.net/c6-chiang-mai-news

http://www.chiangmaicitynews.com/

Nor do I find any discussion of gold shortages reported in Thai Visa forums

http://www.thaivisa.com/forum/

http://www.thaivisa.com/forum/forum/28-chiang-mai-forum/

I only purchase from one shop in CM so I do not have a great overview, looking for input from others. I was going to buy approx 2 weeks ago, my gold store had bars available then but I held back. Then the gold price got knocked down so on April 18 I did buy 1 x 10B bar, wanted 2x5B bars. My store guy said he would have more bars in the next day and I could exchange my 10B for 2x5B bars then no charge. I got the impression sales were brisk but no issues with supply except he seldom carries much stock in bars (orders new stock daily for next day delivery), he mostly stocks gold jewelery.

btw: interesting documentary on gold just out by CBC (Canadian Broadcast Corp) The Secret World Of Gold

http://silverdoctors.com/the-secret-world-of-gold/

http://www.youtube.com/watch?v=Vzge_rRdXHQ&feature=player_embedded

broken into 3 parts here http://www.jsmineset.com/2013/04/19/why-50000-gold/

Doug

[masuk]

As a matter of interest, how many grams is one baht of gold?

[ThaiHerbs]

1 Baht gold is just under 1/2 oz

Answer:

The baht is a unit of weight
for gold, commonly used by jewellers and goldsmiths in Thailand. One
baht = 15.244 grams. Since the standard purity of Thai gold is 96.5%,
the actual gold content in one baht is 15.244 × 0.965 = 14.71046 grams,
or about 0.4729523 troy ounce. 15.244 grams is used for "raw" gold or
bullion; in the case of jewellery, 1 baht should be more than 15.16
grams.
(from wikipedia.org)

http://wiki.answers.com/Q/How_many_grams_is_1_thai_baht_gold

[Thighlander]

1 ounce=28.409.............like I tell my african-american students: check your Maff,

[DaBloodyMess]

1 ounce=28.409.............like I tell my african-american students: check your Maff,

1 troy ounce (which gold is measured in) is 31.1.

check your units of measure

[Somnambulist]

As a matter of interest, how many grams is one baht of gold?

http://lmgtfy.com/?q=one+baht+of+gold+how+many+grams

[Ricardo]

My weekly FT tells me that there is heavy buying, by consumers right across Asia, who view the sudden-dip in the price as a buying-opportunity.

[kiniyow]

As a matter of interest, how many grams is one baht of gold?

15.2 Grams

[worgeordie]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

[jbrain]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Someone has to buy, otherwise the other party can't sell .

[Somnambulist]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Someone has to buy, otherwise the other party can't sell .

When countries sell gold, they sell to another country. None of it hits the open market and the sale/purchase has no effect on the New York spot price. In fact, sometimes countries buy above spot, as India did a few years ago.

[Dante99]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Gold was up about $20/oz yesterday. Nice profit for those who bought. How can you be sure it is a falling market? Perhaps it is bottoming. Long term trend is still up according to some.

[farang62]

Example of what is happening all over the world.

http://www.examiner.com/article/largest-dutch-bank-defaults-on-physical-gold-deliveries-to-customers

[2020]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Gold was up about $20/oz yesterday. Nice profit for those who bought. How can you be sure it is a falling market? Perhaps it is bottoming. Long term trend is still up according to some.

Up less than 2% and thats considered a nice profit???? You do realise there are commisions to be paid.

Glad you're not my investment advisor.....

[Dante99]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Gold was up about $20/oz yesterday. Nice profit for those who bought. How can you be sure it is a falling market? Perhaps it is bottoming. Long term trend is still up according to some.

Up less than 2% and thats considered a nice profit???? You do realise there are commisions to be paid.

Glad you're not my investment advisor.....

In one day, that is a nice profit even after commissions if you know where to buy but I agree, I too am glad that I am not your investment advisor.

[2020]

I don't understand why people are buying on a falling market ? just does not make sense to me.

When it looks like Italy,Greece,Portugal,Spain,Cyprus and there are other countries that will have

to off load some of their reserves just to stay solvent, So it seems the West is selling gold while

the East is buying

Regards Worgeordie

Gold was up about $20/oz yesterday. Nice profit for those who bought. How can you be sure it is a falling market? Perhaps it is bottoming. Long term trend is still up according to some.

Up less than 2% and thats considered a nice profit???? You do realise there are commisions to be paid.

Glad you're not my investment advisor.....

In one day, that is a nice profit even after commissions if you know where to buy but I agree, I too am glad that I am not your investment advisor.

Well at least we agree on one thing.

[bristolgeoff]

i hope it goes up and not down again

[Thighlander]

Is it just a coincidence that the fall of gold seems to coincide with the great reduction in the number of post here on TV, trashing the Dollar, and the US economy as a whole? Look how steep the decline was in the early 80s after the last very big recession. What do you all from Europe call it when the government seizes a certain percentage of your savings?

A "mashey" or something cute like that?

[ThaiHerbs]

I suggest those interested in gold (and silver) take a serious look at this website

http://kingworldnews.com/kingworldnews/King_World_News.html

just out...

April 23, 2013

Sinclair - Swiss Bank Just Refused To Give My Friend His Gold

Today legendary trader Jim Sinclair stunned King World News when he
revealed that a dear friend of his who is very affluent just had a Swiss
bank refuse to return his large hoard of gold when he asked for it out
of an allocated account. Below is what Sinclair,
who was once called on by former Fed Chairman Paul Volcker to assist
during a Wall Street crisis, had to say in this remarkable and candid
interview. ...

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html

and this one http://www.jsmineset.com/

also http://silverdoctors.com/ and for an overview http://www.zerohedge.com/

Doug

[cnxcnx]

At Warorot market almost all shops are out of 1 baht gold bullion except one shop that had some a couple days ago but they wanted an extra 200 baht premium.

A couple had 5 and 10 baht ones but most are only selling gold jewelry.

Big jump in gold today +2.5%

Does your shop charge extra premium for buying? Is it the case in BKK that you just pay the spread and there are no extra charges unlike Chiang Mai?

Edited April 26, 2013 by cnxcnx

[LawrenceChee]

Gold is the best currency for Asians and it will not go away. It's in built in our DNA to have them. U use them to impress oyur love ones, provide security, safety net, nice to hold and touch, Jenga when you are bored, marriage vows, marriage renewals, anniversary gifts, gifts for new borns, to impress your in-laws...

so while there is up / down in the pricing, you can never take that away from being Asian is to love a glittering gold bar. I bought most of mine in the last price shift when it was still at $ 500 - $700 ounce range...I dont know why anyone would say there is no profit..even at the recent dip it is still at $1400...it's a long term security blanket.

[onthedarkside]

All the official gold shops make a sales charge over the listed price. Usually 250 baht per baht of gold.

[OldChinaHam]

So please tell us Darth Sidious,

If the gold shops usually charge 250 baht per baht of gold, then how many baht will they charge per pot of gold?

(I only know very little about taels of gold)

[onthedarkside]

So please tell us Darth Sidious,

If the gold shops usually charge 250 baht per baht of gold, then how many baht will they charge per pot of gold?

(I only know very little about taels of gold)

Oh dear - read http://www.goldpricethai.com/facts

"Thai Gold is famous worldwide for its high purity of 96.5 percent (or 23 carat). Thai Gold is measured in "Baht" and is not to be confussed with the same word for Thailand's Currency."

Seemed obvious to me that the 250 baht is a service charge only and not the value of the gold

[ozsamurai]

Aurora Gold in most Tescos is reporting 2-3 day wait for the bars (any size) on small 40 Baht purchase. So maybe the rush has caused a short term stock control issue. They will still sell you on that days rate and issue a cert for collection (which can be traded).

Oz

[2020]

Gold is the best currency for Asians and it will not go away. It's in built in our DNA to have them. U use them to impress oyur love ones, provide security, safety net, nice to hold and touch, Jenga when you are bored, marriage vows, marriage renewals, anniversary gifts, gifts for new borns, to impress your in-laws...

so while there is up / down in the pricing, you can never take that away from being Asian is to love a glittering gold bar. I bought most of mine in the last price shift when it was still at $ 500 - $700 ounce range...I dont know why anyone would say there is no profit..even at the recent dip it is still at $1400...it's a long term security blanket.

Because watching it on a screen (eg up 2.5% today) is just a gain. There is no profit until a sale is made and in the case of gold, no dividends. Not to mention the people who bought at all time highs, they do exist though probably not talking.

Holding on to it just makes you feel secure, however you hold or wear it. Emotions very rarely make good investments and if you sell something you feel so attached to...oh never mind.

Anyway, there has been talk for years now about the shortage of physical gold compared to the ETF's holdings. How secure is everyone knowing the price didn't go through the roof as the gossips said would happen when orders where realised, but they just gave everyone cash instead.

Sell up and reap the reward. It might not rust, but it can weigh you down.

[Jose]

"Thai Gold is famous worldwide for its high purity of 96.5 percent (or 23 carat)."
The usual investment gold bullion bar content standard is 99.95% ~ 99.99%. Thai gold quality approaches junk gold standards - try selling any of it overseas.

I would be very careful if buying investment-grade gold anywhere in Asia - fake tungsten-filled gold bars are now showing up everywhere.
Tungsten-filled gold bars discovered in Manhattan
And it's not just gold bars

So, how would you test for the alleged purity of your local gold purchase?

And what about when it's time to sell - how would you prove gold content quality to your buyer?

There must be a reason why that famous gold bug in CM only buys his physical gold from Switzerland...

My humble advice: stick to Gold Maple coins - best prices (lowest spreads) readily available in HK.

(edit: can't get rid of weird text indent)

Edited May 19, 2013 by Jose

[elektrified]

"Thai Gold is famous worldwide for its high purity of 96.5 percent (or 23 carat)."

The usual investment gold bullion bar content standard is 99.95% ~ 99.99%. Thai gold quality approaches junk gold standards - try selling any of it overseas.

I would be very careful if buying investment-grade gold anywhere in Asia - fake tungsten-filled gold bars are now showing up everywhere.

Tungsten-filled gold bars discovered in Manhattan

And it's not just gold bars

So, how would you test for the alleged purity of your local gold purchase?

And what about when it's time to sell - how would you prove gold content quality to your buyer?

There must be a reason why that famous gold bug in CM only buys his physical gold from Switzerland...

My humble advice: stick to Gold Maple coins - best prices (lowest spreads) readily available in HK.

(edit: can't get rid of weird text indent)

Thai gold is useful for trading within Thailand, that's about it. Within Thailand it's actually a good way of investing as commissions are so low.

[harryfrompattaya]

At Warorot market almost all shops are out of 1 baht gold bullion except one shop that had some a couple days ago but they wanted an extra 200 baht premium.

A couple had 5 and 10 baht ones but most are only selling gold jewelry.

Big jump in gold today +2.5%

Does your shop charge extra premium for buying? Is it the case in BKK that you just pay the spread and there are no extra charges unlike Chiang Mai?

They did not hold gold as they known as well as most it shall 1200 dollars a oz.

Why would anyone want that junk now

The Gold shops their shirts last month this month and by the end year even more that is why the supply is low

[2020]

"Thai Gold is famous worldwide for its high purity of 96.5 percent (or 23 carat)."

The usual investment gold bullion bar content standard is 99.95% ~ 99.99%. Thai gold quality approaches junk gold standards - try selling any of it overseas.

I would be very careful if buying investment-grade gold anywhere in Asia - fake tungsten-filled gold bars are now showing up everywhere.

Tungsten-filled gold bars discovered in Manhattan

And it's not just gold bars

So, how would you test for the alleged purity of your local gold purchase?

And what about when it's time to sell - how would you prove gold content quality to your buyer?

There must be a reason why that famous gold bug in CM only buys his physical gold from Switzerland...

My humble advice: stick to Gold Maple coins - best prices (lowest spreads) readily available in HK.

(edit: can't get rid of weird text indent)

Agree with the purity in Thailand. A while ago I took two small Krugerrands to a local gold merchant and he'd never heard of them before and thought they were junk/ fake! Though I bet he knows everything about the local stuff/ market.

And I realise my posts sound like I'm an anti gold as an investment but a couple of my best returns have been from gold, especially coins (rare ones).

Gold has its place in a portfolio, but as before any major investment, due diligence is a must.