Bank Of China Thai gold account

[Firefan]

Been noticing Bank of China ads/banners stating they have a Thai gold account, and also stating some interest(?) or fee or something of 2.7%. (I have no idea how calculated, paid out or whether its some initial fee or whatever).

Have anybody heard about this account and the terms? I have been bouncing around their homepage with little luck: http://www.bankofchina.com/th/en/

Cheers!

[BruceSmith]

Hey...

Me just wake up - me thinks

Maybe me hear something somewhere, somehow

Its all sooo confusing

HELP

[Firefan]

Good morning to you Bruce...

I went there and to my surprise it IS actually 2.7% in interest/year, comes with a free debit card, and yes - your money is then in Thai gold - so interest is added as gold too.

It can be used just as a normal account as such. No lock ups Etc. Minimum is 10.000 Baht. Asked about fees/commissions and they claim there is none, but would think they will earn on the bid/offer spread - and who knows what other hidden fees - still - with an interest of 2.7% (was 2.9% before) I will be happy.

Most other ways to invest in gold (leaving out holding it physically which can be a good idea too!) will COST money in storage fees, generally have higher bid/offer spreads (Thai gold must have near the lowest bid/offer spread in the world). Other alternatives like ETFs, Closed End funds and similar comes with management fees and broker commissions. I.e. if gold price stays flat - the value of the investment drops - while here there will be 2.7% more on the account.

Some will argue that 2.7% interest is hardly worth it - considering the volatility involved with gold - and I agree in principle. This should be for a person ANYWAY wanting to invest in gold, and who do maybe not want to buy it all in 1 go. Spreading out the purchases dollar-cost-averaging into it bit by bit. If done with ETFs/funds that could become expensive in commissions, while here it can be done easily.

The debit card is an interesting touch! Besides being free it will when used, automatically convert gold to cash for payment in Thai Baht accordingly. As mentioned above this account has the best fit (for me) as a gold saving account - and using it day to day as ones normal salary account could probably lead to a few heart attacks as the gold price bounces around! I do however appreciate that it gives super easy access to my gold, in the exact amount I want to sell.

Forgot to ask about internet banking but with the ATM card it will be easy to track. Also forgot to ask about whether I can withdraw actual gold from the account (if at a certain size maybe) or whether any access to it will have to convert to paper money..... Will ask when open the account at their Sathorn Branch.

Cheers!

[Naam]

why do i have the funny feeling that the Bank of China has good connections with the Tooth Fairy or some miracle performing Jinns who add the 2.7% on a "Gold Account"?

joke aside, there is no way holding gold and making additional 2.7% without hidden hitches and glitches! the money has to come from somewhere and i bet my [not so] sweet butt that it is not generated by miracles.

[Firefan]

Naam, yes, my guess is they, besides usual embedded fees and bid/offer spreads, might lend out the gold (which in Thailand can be 2%/month...) - but the same is done with our cash deposits (but being FIAT money often ten times over) - so nothing unusual in that - at least they can (hopefully..) only re-lend it out 1 time in case of real gold...

In the end it still comes down to trust in the bank - I trust Bank of China more than most western banks these days.

Cheers!

[Naam]

Naam, yes, my guess is they, besides usual embedded fees and bid/offer spreads, might lend out the gold (which in Thailand can be 2%/month...) - but the same is done with our cash deposits (but being FIAT money often ten times over) - so nothing unusual in that - at least they can (hopefully..) only re-lend it out 1 time in case of real gold...

In the end it still comes down to trust in the bank - I trust Bank of China more than most western banks these days.

Cheers!

fees and bid offer spreads cannot generate 2.7% p.a. Firefan and lending fees for gold of 2% a month sounds to me like science fiction. my question still is "where's the beef?"

p.s. if there is no catch i'd too be interested to open a gold account.

[mccw]

Maybe they use the gold as part of thier capital ratio and the 2.7% is offset buy the other banks activities.

Maybe this is more evidence of the Chinese trying to monetise gold and increase the publics stake in the game. We had some discussions before about the possible long term Chinese plan to internationalise a gold back yuan. Encouraging citizen gold bullion holders and now cash and digital forms would fit in to this. Not sure the % would be worth the bother if there wasn't a bigger purpose involved.

[Firefan]

Naam; I think mccw has a point. The new Basel rules make gold as good as cash as bank reserves - so there is really no difference in you getting interest on your cash deposit is there?

Cheers!

[Naam]

Naam; I think mccw has a point. The new Basel rules make gold as good as cash as bank reserves - so there is really no difference in you getting interest on your cash deposit is there?

Cheers!

the "new Basel rule" exists only in the wet dreams of some goldbugs! the same applies to the other "discussions" mccw mentioned and your assumption "no difference".

[yoshiwara]

Maybe this, maybe that.

[mccw]

^ Yes

The future is always full of maybes.

I think the Chinese are preparing incase of systemic problems. While the current system is still working their favour then they will keep playing; but if things go bad then they are ready with the alternative. The figures show they are buying as much gold as they can without disrupting the market. Of course no reason other than them crazy Asians just love the yellow shiny stuff/ barbourus relic, they just out of date thinking isn't as civilised and clever your westerners who trust in paper instead- the wonderful unlimited power (printing) of paper, glory. The clever westerners who buy 30% gold content jewlary for more price than 96% asian based on weight, the western retail customer doesn't even measure price in weight for jewlary- who's the dummies?

Yoshi, you love to say gold is no protection against inflation/ currency devaluation, but its worked pretty well for the gold savers in India right now- more than the cash savers no?

[Naam]

The figures show they are buying as much gold as they can...

are those figures from somebody who works for the Galactic Gold Council™ poking his nose and presenting the results?

the mere fact that you came up with the nonsense "Gold and Basel" speaks volumes.

mccw... please help me to understand why some of your postings make sense and some are utter

[mccw]

The figures show they are buying as much gold as they can...

are those figures from somebody who works for the Galactic Gold Council poking his nose and presenting the results?

the mere fact that you came up with the nonsense "Gold and Basel" speaks volumes.

mccw... please help me to understand why some of your postings make sense and some are utter

Well thank you for conceding that at least some of my comments do make sense; haha.

You however in this instance seem to be mixing me up with someone else's "Basel" comments. If your mixing my posts with other people's regularly maybe this is why your a little confused?

I stand by my theory of a Chinese gold based back up plan incase of fiat system collapse. How we'd know I'm right or not would only be at the moment of its happening so no need to get hung up on it. I am playing this system as best I can, not holding out for Armageddon in an way- but a few preparations just in case is only sensible. I'm sure you agree since you keep a % reserves also; in fact I think yours are a higher % than mine if I remember right.

[yoshiwara]

^ Yes

The future is always full of maybes.

Yoshi, you love to say gold is no protection against inflation/ currency devaluation, but its worked pretty well for the gold savers in India right now- more than the cash savers no?

Worthless dollars the better bet, no?

[midas]

^ Yes

The future is always full of maybes.

Yoshi, you love to say gold is no protection against inflation/ currency devaluation, but its worked pretty well for the gold savers in India right now- more than the cash savers no?

Worthless dollars the better bet, no?

well i guess they can always be used at a wedding

[yoshiwara]

Good morning to you Bruce...

I went there and to my surprise it IS actually 2.7% in interest/year, comes with a free debit card, and yes - your money is then in Thai gold - so interest is added as gold too.

Apart from the fact that there is no interest on gold per se, in the interest of maybe this and maybe that, you should read the small print.

Is that anywhere to be seen?

[yoshiwara]

The figures show they are buying as much gold as they can...

are those figures from somebody who works for the Galactic Gold Council poking his nose and presenting the results?

the mere fact that you came up with the nonsense "Gold and Basel" speaks volumes.

mccw... please help me to understand why some of your postings make sense and some are utter

Well thank you for conceding that at least some of my comments do make sense; haha.

You however in this instance seem to be mixing me up with someone else's "Basel" comments. If your mixing my posts with other people's regularly maybe this is why your a little confused?

I stand by my theory of a Chinese gold based back up plan incase of fiat system collapse. How we'd know I'm right or not would only be at the moment of its happening so no need to get hung up on it. I am playing this system as best I can, not holding out for Armageddon in an way- but a few preparations just in case is only sensible. I'm sure you agree since you keep a % reserves also; in fact I think yours are a higher % than mine if I remember right.

Don't forget the tins of spam. Just in case.

[yoshiwara]

^ Yes

The future is always full of maybes.

Yoshi, you love to say gold is no protection against inflation/ currency devaluation, but its worked pretty well for the gold savers in India right now- more than the cash savers no?

Worthless dollars the better bet, no?

well i guess they can always be used at a wedding

In Hong Kong. Fresh Dollar Notes. In a Red Envelope.

[Naam]

The figures show they are buying as much gold as they can...

are those figures from somebody who works for the Galactic Gold Council poking his nose and presenting the results?

the mere fact that you came up with the nonsense "Gold and Basel" speaks volumes.

mccw... please help me to understand why some of your postings make sense and some are utter

Well thank you for conceding that at least some of my comments do make sense; haha.

You however in this instance seem to be mixing me up with someone else's "Basel" comments. If your mixing my posts with other people's regularly maybe this is why your a little confused?

I stand by my theory of a Chinese gold based back up plan incase of fiat system collapse. How we'd know I'm right or not would only be at the moment of its happening so no need to get hung up on it. I am playing this system as best I can, not holding out for Armageddon in an way- but a few preparations just in case is only sensible. I'm sure you agree since you keep a % reserves also; in fact I think yours are a higher % than mine if I remember right.

i apologise, it was Firefan coming up with "Gold & Basel". but as far as your "Chinese Gold Back-up" is concerned it's not even worth to waste a second thought on it. if China has Gold and the clients importing Chinese good have only collapsed "fiat money" the Chinese can shove their back-up "back there where the moon doesn't shine". and that of course applies to the Chinese domestic market too.

case closed, Bailiff next! what do we have? thirty-nine cases of "Thai ATM charges on foreign credit cards?" oh no... not this shit again! tell them they are all in contempt of court.

[mccw]

The figures show they are buying as much gold as they can...

are those figures from somebody who works for the Galactic Gold Council poking his nose and presenting the results?

the mere fact that you came up with the nonsense "Gold and Basel" speaks volumes.

mccw... please help me to understand why some of your postings make sense and some are utter

Well thank you for conceding that at least some of my comments do make sense; haha.

You however in this instance seem to be mixing me up with someone else's "Basel" comments. If your mixing my posts with other people's regularly maybe this is why your a little confused?

I stand by my theory of a Chinese gold based back up plan incase of fiat system collapse. How we'd know I'm right or not would only be at the moment of its happening so no need to get hung up on it. I am playing this system as best I can, not holding out for Armageddon in an way- but a few preparations just in case is only sensible. I'm sure you agree since you keep a % reserves also; in fact I think yours are a higher % than mine if I remember right.

i apologise, it was Firefan coming up with "Gold & Basel". but as far as your "Chinese Gold Back-up" is concerned it's not even worth to waste a second thought on it. if China has Gold and the clients importing Chinese good have only collapsed "fiat money" the Chinese can shove their back-up "back there where the moon doesn't shine". and that of course applies to the Chinese domestic market too.

case closed, Bailiff next! what do we have? thirty-nine cases of "Thai ATM charges on foreign credit cards?" oh no... not this shit again! tell them they are all in contempt of court.

Think it through logically please.

They are encouraging the average people to save in gold also, not just building government stock piles. So if the western fiat collapsed- yes the money for west to buy exports would be worthless - as would the paper reserves of government; so the gold they had left would be able to allow Chinese to keep trading for the rescourses to run the country- keep order- maintain their power- announcing a new gold backed currency at this crucial moment of chaos would let them not only survive but jump to be the global currency. Likely all the western currencies would be pegged to the yuan some how if they didn't have the rescourses to declare thier own. After the carnage why would any one trust a western fiat currency again when there is a gold backed alternative? The average people have been encouraged to save in gold too so this is plan so as many as possible can take thier wealth through or increase nations peoples spending power after the event, producing goods and services for them selves while being able to buy up foriegn rescourses and companies relatively cheaply. If the west is lucky they can get back to health manufacturing products for the east.

Just one of many scenarios. Not saying its for sure- nothing is for sure. What I am saying is that if I were the one making the plan and presented with today's fudamentals, then this would be just the kind of plan I'd make. Stock piling metals and oil, grain and such as well. (Many reports of this happening also). Its a good plan they have.

The wests plan is what exactly? Keep adding to the debts- Print more and hope for the best?! Sell our state industries, technologies and infrastructure to foreigners/ highest bidders- smart?! Sell our nations gold reserves (and others) in to the market in a vain attempt to keep the lid on things (evidence by g brown etc)?!

[Naam]

They are encouraging the average people to save in gold also, not just building government stock piles.

that is correct but that was quite some time ago when every housemaid and her dog gambled at the stock market and that even with leverage financed by debt. some goldshenanigans blew up the Chinese "encouragement" out of proportions for their "BUY! BUY! BUY!" and we all know what happened to the price of gold and silver shortly after.

gold backed currency

not feasible... except in wet dreams.

Its a good plan they have... "many reports"

says who? i haven't read one report.

[mccw]

^ your taking "many reports" out of context- that was in relation to the overflowing stocks of metals etc. google it.

The plan is a just a few speculations. My opinion. You don't have to agree. I just saying if I were them thinking how to best plan for the worst then this is basically what I would be doing. A good idea even if I do say so myself:)

[yoshiwara]

In the end it still comes down to trust in the bank - I trust Bank of China more than most western banks these days.

Why?

[midas]

^ Yes

The future is always full of maybes.

Yoshi, you love to say gold is no protection against inflation/ currency devaluation, but its worked pretty well for the gold savers in India right now- more than the cash savers no?

Worthless dollars the better bet, no?

well i guess they can always be used at a wedding

In Hong Kong. Fresh Dollar Notes. In a Red Envelope.

And later the newlywed couple would refer to you as a cheapskate guest who gave Mickey Mouse money in an envelope

[midas]

In the end it still comes down to trust in the bank - I trust Bank of China more than most western banks these days.

Why?

Here is a great conspiracy theory for a Sunday night involving gold and Chinese ghost cities

Gold, China’s Ghost Cities, and Agenda21

http://twoshortplanksunplugged.blogspot.com.au/2013/07/gold-chinas-ghost-cities-and-agenda21.html

Edited September 22, 2013 by midas

[Firefan]

Somebody mentioned the small print, and think also that is what Naam hinted at with "no catches" and as you know well - when I go to open the account, all the prints, small or big, will be in Thai so I will probably not be able to read it anyway....

I will however sacrifice myself on the alter and open an account, and will report back if learn anything new in the process of that, or when holding the account.

Wish me luck guys!

Cheers!

[mccw]

Good luck

How about taking the paper work to a translator first?

I'm interested to hear the small print detail too

[Naam]

Good luck

How about taking the paper work to a translator first?

I'm interested to hear the small print detail too

Bank of China, Thailand has an English website. i could not find any trace of a "gold account".

[mccw]

Me neither ^

[Firefan]

Mccw; translator? Ok - will do that - I send the bill to you? Presume you also want it certified by embassy, foreign ministry and a holy spirit? From opening accounts elsewhere I expect at least 10 closely written pages of stuff - probably more.

Yeah - it's spooky stuff indeed. I could not find there either (planned to use google translate to get me more info) Imagine a homepage not updated with correct info...and then in Thailand.... Maybe that Sathorn Branch is all fake too?

I did get a flyer from them (all in Thai) at last visit. That and the banner(s) are so far the only marketing I have seen for this account.

The flyer DOES however stipulate their hotline: 02 663 9333. Give them a buzz and ask about "ICBC (Thai) Gold Savings".

Cheers!