Curious on what standard is the Baht backed on?

[thailiketoo]

-India was the biggest but since recently (overtaken by China) only the second biggest consumer of gold.

-2013 estimate is 1,150 tons which equals 30% of the global gold consumption.

this is a free lesson concerning "truth, untruth, exceptions, anomalies" and last not least "98%"

I said the price of gold is determined by the global market. You said no it isn't. What are you saying now?

If a Chinese person comes to Thailand they can buy gold for the same price as a person from India or anywhere else. Are you saying that is not true?

Although I think you are trying to cloud my point which was, "This discussion started because one poster said the Thai baht was not backed by gold and I said; convert all of your baht into gold or gold ETF's and they will be backed by gold as you now have the gold or ETF's.

Today I can convert all of the baht I own into gold. The price at which I can convert baht into gold is posted on numerous exchanges in Thailand. So what is a Thai baht worth? Google the price of gold in Thailand.

Is the baht backed by gold? I'll take as much baht in trade as you have plus slight commission and give you gold. No problem.

Edited May 19, 2014 by thailiketoo

[inthepink]

Precious metals have been used as a form of money for thousands of years, this is true and perhaps pertinent to what you are trying to say. But I still think you are a little confused. For instance, if tomorrow I can get more gold with my Baht, I cannot simply assume that the value of the Baht has increased. I would have to look at other factors to see whether in fact, it was the value of gold that had decreased.

When the dollar was backed by gold, governments had the right to redeem dollars for gold at a set rate of exchange, whenever they wished. You have no such rights when trying to exchange your Baht for gold because the Baht is not backed by gold. The other point to bear in mind is that the amount of gold you receive for your Baht is not fixed and can change from day to day, for the same reason.

Edited May 19, 2014 by inthepink

[Naam]

thailiketoo

Edited May 19, 2014 by Naam

[thailiketoo]

Precious metals have been used as a form of money for thousands of years, this is true and perhaps pertinent to what you are trying to say. But I still think you are a little confused. For instance, if tomorrow I can get more gold with my Baht, I cannot simply assume that the value of the Baht has increased. I would have to look at other factors to see whether in fact, it was the value of gold that had decreased.

When the dollar was backed by gold, governments had the right to redeem dollars for gold at a set rate of exchange, whenever they wished. You have no such rights when trying to exchange your Baht for gold because the Baht is not backed by gold. The other point to bear in mind is that the amount of gold you receive for your Baht is not fixed and can change from day to day, for the same reason.

Used to be that you could exchange your US silver certificate dollars for silver coins. All redemption in silver ceased on 24 June 1968 in the USA. Now you can exchange US dollars for silver or gold. It used to be illegal for Americans to own gold bullion but it is not now. The US dollars are exchangeable in silver or gold but not from the government.

Before you could exchange them by weight now you can exchange them by value. The US gov set the rate in 1945 at .90.5 cents per once of silver. Now you may get more or less but the value is not set by the US government; it is set by the market.

Most paper currencies are backed up by gold or silver but it is the market that backs them up and not the government.

If you want to sell me some paper currency for gold I will back up todays price plus a commission to facilitate that trade.

Now you have the right to exchange your gold or silver for whatever the market will pay.

Blood in the streets sell gold and buy real estate.

I understand what you are trying to say. But what I think you mean is the government is no longer guaranteeing paper money with it's face value in a precious metal. It may be worth more or less depending on the market.

[SheungWan]

-India was the biggest but since recently (overtaken by China) only the second biggest consumer of gold.

-2013 estimate is 1,150 tons which equals 30% of the global gold consumption.

this is a free lesson concerning "truth, untruth, exceptions, anomalies" and last not least "98%"

If a Chinese person comes to Thailand they can buy gold for the same price as a person from India or anywhere else. Are you saying that is not true?

Still in that hole and digging even more furiously I see..... Let us assume that our The Mainland China guy brings RMB and the Indian guy brings Indian Rupees (they both know as we all do that you get a better rate changing your money in Thailand). Now let us assume that each guy brought into Thailand one year ago the exact amount of their currency which when converted to baht gave them both exactly 1 million baht. Each of them can buy (assuming standard prices) the same amount of gold, silver, gruyere cheese, whatever. Fast forward one year and the two guys are going to bring exactly the same amount of RMB and rupees as they did last year. So what do we find when the two guys convert their currencies into baht this time? The Indian guy gets about 3% more baht for his rupees but the Chinese guy gets about 7% more baht for his RMB (the figures are approximate). So both go shopping together and if they blow all of their baht on gold, the Chinese guy will get 4% more than the Indian guy, irrespective of the gold price at mid-day, midnight or the middle of the month.

[thailiketoo]

-India was the biggest but since recently (overtaken by China) only the second biggest consumer of gold.

-2013 estimate is 1,150 tons which equals 30% of the global gold consumption.

this is a free lesson concerning "truth, untruth, exceptions, anomalies" and last not least "98%"

If a Chinese person comes to Thailand they can buy gold for the same price as a person from India or anywhere else. Are you saying that is not true?

Still in that hole and digging even more furiously I see..... Let us assume that our The Mainland China guy brings RMB and the Indian guy brings Indian Rupees (they both know as we all do that you get a better rate changing your money in Thailand). Now let us assume that each guy brought into Thailand one year ago the exact amount of their currency which when converted to baht gave them both exactly 1 million baht. Each of them can buy (assuming standard prices) the same amount of gold, silver, gruyere cheese, whatever. Fast forward one year and the two guys are going to bring exactly the same amount of RMB and rupees as they did last year. So what do we find when the two guys convert their currencies into baht this time? The Indian guy gets about 3% more baht for his rupees but the Chinese guy gets about 7% more baht for his RMB (the figures are approximate). So both go shopping together and if they blow all of their baht on gold, the Chinese guy will get 4% more than the Indian guy, irrespective of the gold price at mid-day, midnight or the middle of the month.

Ya like I said the Chinese guy and the Indian guy can both buy gold for the same price in baht in Thailand. You can do all of the currency speculation that you like. Perhaps both men have bank accounts in Thailand in baht like I do. Nationality makes no difference. There is no law that says a person can't buy gold in Thailand. I don't know why you would want to price Thai gold into another currency. It's OK but why? Maybe my grandmother has pounds or Australian dollars. Who cares.

The price of gold in Thailand does not care where you came from. You would change your currency into baht before you bought the gold. When you are buying bars they don't seem to want credit cards so everyone gets cash from the ATM first.

[SheungWan]

-India was the biggest but since recently (overtaken by China) only the second biggest consumer of gold.

-2013 estimate is 1,150 tons which equals 30% of the global gold consumption.

this is a free lesson concerning "truth, untruth, exceptions, anomalies" and last not least "98%"

If a Chinese person comes to Thailand they can buy gold for the same price as a person from India or anywhere else. Are you saying that is not true?

Still in that hole and digging even more furiously I see..... Let us assume that our The Mainland China guy brings RMB and the Indian guy brings Indian Rupees (they both know as we all do that you get a better rate changing your money in Thailand). Now let us assume that each guy brought into Thailand one year ago the exact amount of their currency which when converted to baht gave them both exactly 1 million baht. Each of them can buy (assuming standard prices) the same amount of gold, silver, gruyere cheese, whatever. Fast forward one year and the two guys are going to bring exactly the same amount of RMB and rupees as they did last year. So what do we find when the two guys convert their currencies into baht this time? The Indian guy gets about 3% more baht for his rupees but the Chinese guy gets about 7% more baht for his RMB (the figures are approximate). So both go shopping together and if they blow all of their baht on gold, the Chinese guy will get 4% more than the Indian guy, irrespective of the gold price at mid-day, midnight or the middle of the month.

Ya like I said the Chinese guy and the Indian guy can both buy gold for the same price in baht in Thailand. You can do all of the currency speculation that you like. Perhaps both men have bank accounts in Thailand in baht like I do. Nationality makes no difference. There is no law that says a person can't buy gold in Thailand. I don't know why you would want to price Thai gold into another currency. It's OK but why? Maybe my grandmother has pounds or Australian dollars. Who cares.

The price of gold in Thailand does not care where you came from. You would change your currency into baht before you bought the gold. When you are buying bars they don't seem to want credit cards so everyone gets cash from the ATM first.

Beam me up Scotty.

[inthepink]

You could make the same argument for oil or any number of widely traded commodities but it doesn't follow that those commodities in any way back the currencies with which you can buy them. The price for gold is the same in most countries because if it differed by even a small amount (government restrictions on the buying of gold in some countries notwithstanding) those who practice arbitrage would soon close the price gap.

As soon as SheungWan is safely aboard the Starship Enterprise, I shall be joining him.

Edited May 19, 2014 by inthepink

[thailiketoo]

The OP wrote, "As far as gold California produces more than Thailand has in country. So what's is it based on? Lies?"

Now what was the intent and/or real question by the OP? First he is not accurate. California produced about 1603 kg in 2007 Thailand 3401 kg.

Thailand has more gold reserves than Singapore, Sweden, Australia, Denmark and Finland.

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

Gold consumption in Thailand, the biggest user in Asia after China and India, expanded 73 percent to 140.1 tons last year, according to World Gold Council data. Imports were higher than local consumption in 2013 as some bullion was re-exported, including jewelry.

http://www.bloomberg.com/news/2014-05-18/gold-appetite-shrinks-in-thailand-amid-political-deadlock.html

Thailand has 6000 gold shops.

The government of Thailand does not back the currency with gold.

What is one big attraction of Thai gold for citizens? it can be simply traded for cash at any gold store. It's just a matter of taking your gold into any gold store, (preferably the one you bought it from), and with a minimum of fuss, it will be bought back for cash - no questions asked.

My conclusion is that gold is used in Thailand as a store of value and by some as a currency.

The OP's question is the Thai currency based on lies? The Thai currency can be exchanged for gold at the going global rate very easily at any time in Thailand.

The OP also wrote, " There is no real industry other than rice commodity"

Nonsense, as Thailand is the largest manufacturer of hard drives in world and one of top ten producers of autos and automotive parts.

I don't believe there are any countries currencies that are backed by gold or silver anymore perhaps the OP could tell us what the currency of his country is based on? I think the OP is using backed and based synonymously.

Edited May 20, 2014 by thailiketoo

[inthepink]

The OP wrote, "As far as gold California produces more than Thailand has in country. So what's is it based on? Lies?"

Now what was the intent and/or real question by the OP? First he is not accurate. California produced about 1603 kg in 2007 Thailand 3401 kg.

Thailand has more gold reserves than Singapore, Sweden, Australia, Denmark and Finland.

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

Gold consumption in Thailand, the biggest user in Asia after China and India, expanded 73 percent to 140.1 tons last year, according to World Gold Council data. Imports were higher than local consumption in 2013 as some bullion was re-exported, including jewelry.

http://www.bloomberg.com/news/2014-05-18/gold-appetite-shrinks-in-thailand-amid-political-deadlock.html

Thailand has 6000 gold shops.

The government of Thailand does not back the currency with gold.

What is one big attraction of Thai gold for citizens? it can be simply traded for cash at any gold store. It's just a matter of taking your gold into any gold store, (preferably the one you bought it from), and with a minimum of fuss, it will be bought back for cash - no questions asked.

My conclusion is that gold is used in Thailand as a store of value and by some as a currency.

The OP's question is the Thai currency based on lies? The Thai currency can be exchanged for gold at the going global rate very easily at any time in Thailand.

The OP also wrote, " There is no real industry other than rice commodity"

Nonsense, as Thailand is the largest manufacturer of hard drives in world and one of top ten producers of autos and automotive parts.

I don't believe there are any countries currencies that are backed by gold or silver anymore perhaps the OP could tell us what the currency of his country is based on? I think the OP is using backed and based synonymously.

The original post was indeed a load of rubbish. Agriculture (or perhaps just rice, I can't remember) accounts for only around 6% of GDP so the OP has no clue what he is talking about. I think the largest contribution to GDP is made by the manufacturers of automotive transporters, or so I read somewhere.