Gold price in Thailand to drop further this month

[webfact]

Gold price to drop further this month
By Digital Content



BANGKOK, Nov 12 -- The Gold Research Center projects the gold price in Thailand will continue to decline this month and range from Bt17,000 to Bt19,000.

It warns the price can drop to Bt15,000 per baht-weight next year if the US Federal Reserve raises its interest rate sooner than expected.

Kamolthan Pornpaisalvichit, director of the Gold Research Center, said the gold price was likely to fall further in the next 3-6 months after plunging below its technical support level of US$1,150 per ounce. He said that analysts expected the price to drop to US$1,000 an ounce next year or even lower than that.

Under the circumstances and with the possibility of the Fed raising its interest rate faster than expected, Thailand's domestic gold price may fall to Bt15,000-15,500 per baht-weight at the exchange rate of Bt32.75 per US dollar and investors can move from gold to savings, bonds and shares, Mr Kamolthan said.

For this month he predicts the price will drop to US$1,100-1,220 per ounce and the local price will range between Bt17,000 and 19,000 per baht-weight. He said that the gold price might recover during upcoming holiday periods in January and February but he is also concerned about the value of the US dollar as that could rise due to the American economic recovery. (MCOT online news)


-- TNA 2014-11-12

[Lupatria]

Maybe its because the cops are flooding the market with tons of it from the stash they 'confiscated' from the drug lords.

[apetley]

$1220 is a nice rise from todays price.

Who writes this crap?

[khunken]

$1220 is a nice rise from todays price.

Who writes this crap?

Deleted - I misunderstood your post

Edited November 12, 2014 by khunken

[carib102]

$1.220 was the price as recently as 2 weeks ago. It is not only possible, but even likely that gold could bounce on some as yet unknown factors. Political instability, some weak U.S. economic data, a new war breaking out...all of these could cause a safe haven rally in gold that would send it higher. Khun Pornpaisalvichit is likely setting the upper limit at $1,220 because it is the next major resistance area above the $1,175 level. It's even easy to say that if gold were to break above $1,220 an ounce it will head to $1,245 as that is the next higher resistance level. Given the current world fundamentals though, if gold were to see a relief rally that takes it back above $1,200 an ounce it would be a great selling opportunity as the strength of the USD, which is very likely to continue (possibly for as long as the weakness of the USD persisted), is a drag on the price of gold. $1,000 an ounce or lower in the coming year is certainly not out of the question. Compound that with the USD/THB heading higher (say to the 35-36 range) and I imagine that gold in Thailand will be significantly lower than Bt15,000 per baht-weight at some point next year. That's just my considered opinion though. Personally I will be waiting for Bt9,000 to Bt10,000 per baht-weight before beginning to buy gold.

[Colabamumbai]

When economies buy dollars the gold price goes down. When there is no faith in the dollar the gold prices rise. 40 years ago Thai Gold was priced at $250.00 per Baht weight about 7,500 Baht.

[elgordo38]

What are you smoking what recovery in the United States. Are you referring to those fudged numbers the government hands out. The government can spin numbers till you get a headache. So many are underemployed living in their parents basement some holding 2 and 3 jobs to get by and the reason that unemployment rates are dropping is that many have just quit looking for work. Have you taken a look at the national debt 17 trillion and counting. Get a documentary sometime called "The Fall Of The Republic" Even Allen Greenspan stated in last weeks speech that gold and silver were currencies. Yes there is a feel good feeling floating around with all that Monopoly money in circulation and the stock market is the only game in town. Raise interest rates hardly all their cronies in the business field would shout to high heaven as they are using this cheap money to buy out the competition and lay more workers off. Also even the slightest increase would put many families in danger of loosing their homes. Who is the biggest borrower of money? The government. Do you think they would raise interest rates on the 17 trillion plus that they owe. Hardly likely.

[carib102]

The United States is still the largest economy in the world last time I checked. And what makes you so sure the numbers are fudged? You have a top position at the Department of Labor Statistics? The Department of Commerce? The Bureau of Economic and Business Affairs maybe? Bear in mind as well that it isn't all about employment data. Oh, and the Fed has stopped buying assets in case you haven't noticed. In contrast, the Japanese are just beginning down the road to quantitative easing, and the ECB is primed and ready to step on that path. You've seen what QE did to the value of the USD relative to world currencies in the last six years (less actually as the USD has been in an uptrend since May). Now imagine the reverse scenario where the U.S. is NOT buying their own assets, but the rest of the world is. What do you think will happen to the USD (which also happens to still be the reserve currency of the world). Oh, and as to all the big wig cronies or whatever you want to call them...they can still make money if the the USD strengthens. The stock market is hardly the ONLY game in town.

Let's look at the numbers from the rest of the world shall we? Japan has been stagnant for over 20 years and is doing anything and everything to boost their growth. The European Union has far greater unemployment relative to the U.S., no growth to speak of and the possibility of deflation on the horizon. China is no longer growing in double digits, and in fact there is a good chance that their own 7.5% growth level is fudged. Not to mention the possibility that they are sitting on trillions of dollars of bad real estate loans.

Say what you wish about the U.S. economy, but it is the best choice in a bad set when looking at the world's developed economies. Australia or Canada might compare favorably, except for their pesky reliance on commodities and the fact that said commodities are falling in value as the USD strengthens.

And say what you will about gold and silver being currencies...I challenge you to go out and buy dinner, a tank of gas, or groceries with any gold and silver you may be holding.

[bkk_mike]

Pure speculation.

Gold is priced in USD. If the US raises interest rates, the dollar will rise, and the relative cost of holding gold (as it pays no interest) will increase, causing some people to transfer from gold to USD.

But even if gold drops in dollar terms, a strengthening dollar may mean it doesn't drop in baht terms.

[carib102]

Any discussion of future asset prices is nothing but speculation of course as none of us have a crystal ball. If I did it would no longer be speculation, but on the other hand I likely wouldn't be sharing my information on an internet forum. Or maybe I would...just for fun.

[RikDao]

As of about a month ago, China is the world's largest economy, 16.48% vs 16.28% for the US. China's also buying a lot of gold. However, none of that means poot because the price of gold is manipulated by the banksters in NY and London.

[icare999]

good for a laugh these experts aren't they

[apetley]

When economies buy dollars the gold price goes down. When there is no faith in the dollar the gold prices rise. 40 years ago Thai Gold was priced at $250.00 per Baht weight about 7,500 Baht.

It was 8k bht only 9 years ago.

[carib102]

As of about a month ago, China is the world's largest economy, 16.48% vs 16.28% for the US. China's also buying a lot of gold. However, none of that means poot because the price of gold is manipulated by the banksters in NY and London.

Source please. Inquiring minds want to know.

[pattayasnowman]

As of about a month ago, China is the world's largest economy, 16.48% vs 16.28% for the US. China's also buying a lot of gold. However, none of that means poot because the price of gold is manipulated by the banksters in NY and London.

This is based on method used by the IMF adjusts for purchasing power parity

In terms of GDP the USA is some $7 trillion dollars greater then China's GDP

As to the price of Gold being manipulated by big banks, thats an urban myth with no basis in reality

The Gold market, as with most markets, is too big to be manipulated. The Hunt brothers found this out in the late 70's when they tried to corner the Silver Market.

Countries that try to intervene in the currency market to support their currency just wast millions of dollars for a short term respite.

The original post is very accurate based on Technical considerations. Gold has broken below key support, and if this is not a fake out, will likely reach $1000/oz before real support again.

As to the Dollar it has probable begun a long term upward trend, coming off a double bottom, that will take it back to its old highs of 2002. (see chart)

This probable will have less affect on the Baht/dollar rate since , I think, the Baht is not freely traded but weight against a Basket of currencies.

Edited November 12, 2014 by pattayasnowman

[stoli]

Maybe its because the cops are flooding the market with tons of it from the stash they 'confiscated' from the drug lords.

So you think the world price of gold is influenced by the local Thai police? Wow. I hope you have someone else doing your investing for you. Few countries hold tons of gold, probably less than 10. But you say the drug lords in Thailand have had that much confiscated?

[stoli]

The United States is still the largest economy in the world last time I checked. And what makes you so sure the numbers are fudged? You have a top position at the Department of Labor Statistics? The Department of Commerce? The Bureau of Economic and Business Affairs maybe? Bear in mind as well that it isn't all about employment data. Oh, and the Fed has stopped buying assets in case you haven't noticed. In contrast, the Japanese are just beginning down the road to quantitative easing, and the ECB is primed and ready to step on that path. You've seen what QE did to the value of the USD relative to world currencies in the last six years (less actually as the USD has been in an uptrend since May). Now imagine the reverse scenario where the U.S. is NOT buying their own assets, but the rest of the world is. What do you think will happen to the USD (which also happens to still be the reserve currency of the world). Oh, and as to all the big wig cronies or whatever you want to call them...they can still make money if the the USD strengthens. The stock market is hardly the ONLY game in town.

Let's look at the numbers from the rest of the world shall we? Japan has been stagnant for over 20 years and is doing anything and everything to boost their growth. The European Union has far greater unemployment relative to the U.S., no growth to speak of and the possibility of deflation on the horizon. China is no longer growing in double digits, and in fact there is a good chance that their own 7.5% growth level is fudged. Not to mention the possibility that they are sitting on trillions of dollars of bad real estate loans.

Say what you wish about the U.S. economy, but it is the best choice in a bad set when looking at the world's developed economies. Australia or Canada might compare favorably, except for their pesky reliance on commodities and the fact that said commodities are falling in value as the USD strengthens.

And say what you will about gold and silver being currencies...I challenge you to go out and buy dinner, a tank of gas, or groceries with any gold and silver you may be holding.

Just to clarify one point. Almost a month ago, as predicted, China became the world's largest economy, with the U.S. falling to second place. Sad, but true.

[maidee]

don't we have to wait if the SWISS went to replenish their gold reserves which would make the price skyrocket again ???

[HUAHIN62]

The United States is still the largest economy in the world last time I checked. And what makes you so sure the numbers are fudged? You have a top position at the Department of Labor Statistics? The Department of Commerce? The Bureau of Economic and Business Affairs maybe? Bear in mind as well that it isn't all about employment data. Oh, and the Fed has stopped buying assets in case you haven't noticed. In contrast, the Japanese are just beginning down the road to quantitative easing, and the ECB is primed and ready to step on that path. You've seen what QE did to the value of the USD relative to world currencies in the last six years (less actually as the USD has been in an uptrend since May). Now imagine the reverse scenario where the U.S. is NOT buying their own assets, but the rest of the world is. What do you think will happen to the USD (which also happens to still be the reserve currency of the world). Oh, and as to all the big wig cronies or whatever you want to call them...they can still make money if the the USD strengthens. The stock market is hardly the ONLY game in town.

Let's look at the numbers from the rest of the world shall we? Japan has been stagnant for over 20 years and is doing anything and everything to boost their growth. The European Union has far greater unemployment relative to the U.S., no growth to speak of and the possibility of deflation on the horizon. China is no longer growing in double digits, and in fact there is a good chance that their own 7.5% growth level is fudged. Not to mention the possibility that they are sitting on trillions of dollars of bad real estate loans.

Say what you wish about the U.S. economy, but it is the best choice in a bad set when looking at the world's developed economies. Australia or Canada might compare favorably, except for their pesky reliance on commodities and the fact that said commodities are falling in value as the USD strengthens.

And say what you will about gold and silver being currencies...I challenge you to go out and buy dinner, a tank of gas, or groceries with any gold and silver you may be holding.

The US labour participation rate is the lowest since the 1970's which is a true reflection of the number of workers thats unemployed and not fully employed. Due to the way unemployment is calculated the unemployment rate (U3) can decrease although less workers are employed.

The CPI calculation method has been changed +- 20 times since the 1980's, each time in a way that lowered it. For each 1% the official CPI figure is lower than the real one the US government saves $ 3 BN on SS alone. Go to shadowstats.com and read more on how the CPI figures have been fudged.

The US growth numbers comes out high and then are adjusted down, but most people only look at the estimates and not the real figures at the end. The US will only grow at 2% this year and about half of that growth will be from government spending.

If you look at the real CPI, employment and GDP figures before seasonal adjustment you get true picture, because these adjustments are used to twist the figures to reflect what they want.

The homeownership in the US is at its lowest rate since 1970's. This reflects the true financial position of US workers.

The net worth of the US middle class is now the same as 30 years ago, without taking inflation into consideration.

The number of people on government support is at its highest level ever (+- 47 million).

Your education system is failing, the US was always in the top 5 countries and now is about at number 25.

There is moral decline in the US with 40% of children born out of wedlock.

About gold being a currency you can watch Alan Greenspan admitting the gold is a currency, the only real one. http://www.zerohedge.com/news/2014-11-07/greenspans-stunning-admission-gold-currency-no-fiat-currency-including-dollar-can-ma . Your Dollars have only value due to trust in the US government which can disappear in a blink of an eye. Russia and China are working hard to get away from the $ as the reserve world currency/petro dollar. For any country except the US there is a cost of +- 3,5% to do business in the USD and by using currency swaps the trading partners can save this money. The USD will lose its reserve currency status as the US empire decline its only a matter of time. No empire lasts for ever, get used to the fact.

[Asiantravel]

$1220 is a nice rise from todays price.

Who writes this crap?

Because I was curious to know more about who exactly is the gold research Centre I found their website advertised on the website of the Gold traders Association of Thailand (and these are the people who set the daily price).

But the gold research Centre website doesn't even work

www.gold.or.th

Edited November 12, 2014 by Asiantravel

[Frank James]

good for a laugh these experts aren't they

Yes, especially the ones that show up on ThaiVisa: bulls or bears, they all seem so adamant in their punditry.

Nobody knows nothing!

[Chwooly]

Maybe its because the cops are flooding the market with tons of it from the stash they 'confiscated' from the drug lords.

Gold price is not going up because gold is not selling as there are no tourists to buy if for the out of work bar girls.

[Chwooly]

There is moral decline in the US with 40% of children born out of wedlock.

The rest of your post makes for interesting reading but why is being born out of wedlock an indication of moral decline (morals are subjective (IMHO)) and how does that effect the price of gold/dollar?

[RikDao]

As of about a month ago, China is the world's largest economy, 16.48% vs 16.28% for the US. China's also buying a lot of gold. However, none of that means poot because the price of gold is manipulated by the banksters in NY and London.

This is based on method used by the IMF adjusts for purchasing power parity

In terms of GDP the USA is some $7 trillion dollars greater then China's GDP

As to the price of Gold being manipulated by big banks, thats an urban myth with no basis in reality

The Gold market, as with most markets, is too big to be manipulated. The Hunt brothers found this out in the late 70's when they tried to corner the Silver Market.

Countries that try to intervene in the currency market to support their currency just wast millions of dollars for a short term respite.

The original post is very accurate based on Technical considerations. Gold has broken below key support, and if this is not a fake out, will likely reach $1000/oz before real support again.

As to the Dollar it has probable begun a long term upward trend, coming off a double bottom, that will take it back to its old highs of 2002. (see chart)

This probable will have less affect on the Baht/dollar rate since , I think, the Baht is not freely traded but weight against a Basket of currencies.

Urban myth, whatever. Don't much care what you think; what I think is what matters to me. As far as the Hunt brothers, they tried to corner the silver market, but the banksters in New York had other plans. In other words, they manipulated the price down by shorting it, just like they're doing today in gold and silver, causing the Hunts to be wiped out of their long positions. Of course, computer trading has made all of this much, much simpler today. So, ostrich syndrome much? (Catchy little phrase, innit? Kinda like "urban myth," innit?)

[rgs2001uk]

$1220 is a nice rise from todays price.

Who writes this crap?

Because I was curious to know more about who exactly is the gold research Centre I found their website advertised on the website of the Gold traders Association of Thailand (and these are the people who set the daily price).

But the gold research Centre website doesn't even work

www.gold.or.th

(and these are the people who set the daily price).

Wow, really, and here was poor dumb old me thinking the world markets set the price.

+ one for Thainess, they actually have the ability and wherewithall to influence world markets, just coz Little Lek was cashing in her stipend from her latest farang at Yaowarat today.

[Robert2006]

The United States is still the largest economy in the world last time I checked. And what makes you so sure the numbers are fudged? You have a top position at the Department of Labor Statistics? The Department of Commerce? The Bureau of Economic and Business Affairs maybe? Bear in mind as well that it isn't all about employment data. Oh, and the Fed has stopped buying assets in case you haven't noticed. In contrast, the Japanese are just beginning down the road to quantitative easing, and the ECB is primed and ready to step on that path. You've seen what QE did to the value of the USD relative to world currencies in the last six years (less actually as the USD has been in an uptrend since May). Now imagine the reverse scenario where the U.S. is NOT buying their own assets, but the rest of the world is. What do you think will happen to the USD (which also happens to still be the reserve currency of the world). Oh, and as to all the big wig cronies or whatever you want to call them...they can still make money if the the USD strengthens. The stock market is hardly the ONLY game in town.

Let's look at the numbers from the rest of the world shall we? Japan has been stagnant for over 20 years and is doing anything and everything to boost their growth. The European Union has far greater unemployment relative to the U.S., no growth to speak of and the possibility of deflation on the horizon. China is no longer growing in double digits, and in fact there is a good chance that their own 7.5% growth level is fudged. Not to mention the possibility that they are sitting on trillions of dollars of bad real estate loans.

Say what you wish about the U.S. economy, but it is the best choice in a bad set when looking at the world's developed economies. Australia or Canada might compare favorably, except for their pesky reliance on commodities and the fact that said commodities are falling in value as the USD strengthens.

And say what you will about gold and silver being currencies...I challenge you to go out and buy dinner, a tank of gas, or groceries with any gold and silver you may be holding.

I don’t agree, the numbers are defiantly fudged, they are so fudged they are almost meaningless. The US is the currently the best economy in the world I agree with that.

It’s very easy to buy a tank of gas or go out to dinner with the money derived from gold; you just stop at any one of the hundreds of gold shops in your city and convert your gold into Baht, instantly.

[RikDao]

As of about a month ago, China is the world's largest economy, 16.48% vs 16.28% for the US. China's also buying a lot of gold. However, none of that means poot because the price of gold is manipulated by the banksters in NY and London.

Source please. Inquiring minds want to know.

Google? World's largest economy, try that. And do you read the National Enquirer, or just quote their ad copy?

[SheungWan]

The United States is still the largest economy in the world last time I checked. And what makes you so sure the numbers are fudged? You have a top position at the Department of Labor Statistics? The Department of Commerce? The Bureau of Economic and Business Affairs maybe? Bear in mind as well that it isn't all about employment data. Oh, and the Fed has stopped buying assets in case you haven't noticed. In contrast, the Japanese are just beginning down the road to quantitative easing, and the ECB is primed and ready to step on that path. You've seen what QE did to the value of the USD relative to world currencies in the last six years (less actually as the USD has been in an uptrend since May). Now imagine the reverse scenario where the U.S. is NOT buying their own assets, but the rest of the world is. What do you think will happen to the USD (which also happens to still be the reserve currency of the world). Oh, and as to all the big wig cronies or whatever you want to call them...they can still make money if the the USD strengthens. The stock market is hardly the ONLY game in town.

Let's look at the numbers from the rest of the world shall we? Japan has been stagnant for over 20 years and is doing anything and everything to boost their growth. The European Union has far greater unemployment relative to the U.S., no growth to speak of and the possibility of deflation on the horizon. China is no longer growing in double digits, and in fact there is a good chance that their own 7.5% growth level is fudged. Not to mention the possibility that they are sitting on trillions of dollars of bad real estate loans.

Say what you wish about the U.S. economy, but it is the best choice in a bad set when looking at the world's developed economies. Australia or Canada might compare favorably, except for their pesky reliance on commodities and the fact that said commodities are falling in value as the USD strengthens.

And say what you will about gold and silver being currencies...I challenge you to go out and buy dinner, a tank of gas, or groceries with any gold and silver you may be holding.

I don’t agree, the numbers are defiantly fudged, they are so fudged they are almost meaningless. The US is the currently the best economy in the world I agree with that.

It’s very easy to buy a tank of gas or go out to dinner with the money derived from gold; you just stop at any one of the hundreds of gold shops in your city and convert your gold into Baht, instantly.

Oh yes, the Mad Max Dinner Party Crowd do this all the time.

[Suradit69]

Gold price in Thailand to drop

The price in Thailand depends on the price in NY and London (or, given recent events, maybe it should be the priced "fiddled with" in London) and the dollar exchange rates. The price used in the shops is reset at least twice a day and very much depends on world prices and exchange rates to the dollar, not domestic issues.. Whenever I buy or sell gold the dealer double checks the rates by mobile phone since the price posted in shop windows is often not the latest.

Current predictions are for prices of $1050 per ounce or about Baht 16,250 per baht weight.

http://www.goldpricethai.com/

Edited November 12, 2014 by Suradit69

[KOZMO]

When economies buy dollars the gold price goes down. When there is no faith in the dollar the gold prices rise. 40 years ago Thai Gold was priced at $250.00 per Baht weight about 7,500 Baht.

It was 8k bht only 9 years ago.

I think the first said price of gold 40 years ago is way off!!! ! bought 1 baht gold chain for 500 baht in 1970. It was 18k and the baht was 104 to us $5.00

This was outside the main gate at Ubon RTAFB. 24 bottles of coke was 10 baht. I rented a bungalow, 2 bedroom with bath and kitchen, plus guest area

for $25.oo a month!!! The good old days!!