Gold in Thailand as an Investment

[CNXBKKMAN]

I know little about gold but am considering buying some in Thailand as an investment. The gold will be bought here and sold here at some later point. I have no intentions to try and sell it in another country. I am just getting up to speed with the options and may even not buy any at all.

This is the scenario. Say you have x amount of baht 500,000 or 1,000,000 and rather than keep it in the local thai bank earning a small % interest you were happy to buy some gold with it. Hold it for it for a couple of years or longer no problem. However one year later you may want to buy a new Honda Dream 50,000 or something similar and you take part of your gold back to the shop and sell it. So one big 1,000,000 baht bar of gold is no good. Many smaller pieces of gold is preferable so you can part sell it any time but still keep most of you gold investment intact.

What are the popular gold sizes, easiest to sell, what purity? What size do you need to buy to not have some silly buying and selling spread? Is there a point, a happy medium where you have smaller or smallish sizes of gold rather than some single larger bar? Are there 50,000 baht sizes or similar that have a fair buying and selling spread?

BTW nobody needs to send me messages offering to sell me gold coins or silver. If I do decide to buy some gold it will be from the most reputable shops over the counter locally here in Thailand.

[OneZero]

http://www.thaivisa.com/forum/topic/790608-now-might-be-the-time-to-get-into-gold/

http://www.thaivisa.com/forum/topic/799710-gold-shop-harassment-for-deposit-of-10k/page-3

A couple good threads were already started. As expected, mush pro & con. But amongst the pro commenters there is some very good advice about how to go about it wisely. Further comments welcome of course. I'm also interested.

[sanuk711]

Where do you mean to keep it--?...... I don't mean give me your address, but you have to consider it if you don't have a safety deposit box (which are not so easy to get in Thailand) ---some quite reputable shops will keep it for you. You can get a mix of weights, (or if the shop is keeping it for you they will just do a deduction,) Trading in it is so very easy here 100 baht a trade I think.

I brought some a few years back-----obviously at the completely wrong time.....(story of my life) it still hasn't reach anywhere near what I paid for it yet.... but I'll let you know when I do decided to sell it all, because the day after the price is bound to rocket.

[Naam]

100 baht a trade I think

not per trade but per Baht weight. for very small weights ½ Baht and 1 Baht the buy/sell premium is much higher.

by the way, big thanks to the OP. he brightened my dull day. but my dogs looked quite confused when they watched me rolling on the floor roaring with laughter after reading his scientific posting combined with the sound advice from an obviously experienced investor.

[Bpuumike]

2 Baht pieces ('biscuits') are close enough to 1oz and you can buy larger or smaller, though smaller not recommended.

As mentioned, storage is the problem though I wasn't aware that gold shops might hold it for you. Hmm... Thailand...

[Pinot]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

[dotpoom]

100 baht a trade I think

not per trade but per Baht weight. for very small weights ½ Baht and 1 Baht the buy/sell premium is much higher.

by the way, big thanks to the OP. he brightened my dull day. but my dogs looked quite confused when they watched me rolling on the floor roaring with laughter after reading his scientific posting combined with the sound advice from an obviously experienced investor.

My Mother was often heard to say....."How will you ever learn anything if you don't ask questions"

[pkspeaker]

Not when you buy it at the right time,i did well with my gold investments sold them after the financial crisis...my concern now with gold is bitcoin..bitcoin seems to have stollen some of golds shine in the short term

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

[asiaj]

I buy Gold with any spare money i have left over and don't look at it like a investment just a form of currency which you can check daily. Earlier in the year the price for 1 Bhat of Gold was 21000 now it is around 19000 Bhat. Guaranteed In the next year the price will go back up to over 20,000. You won't make alot and you won't lose alot but you might make a little or lose a little if you need to sell.

My advice is buy a small safe and dip your toes in the water

[Naam]

I buy Gold with any spare money i have left over and don't look at it like a investment just a form of currency which you can check daily. Earlier in the year the price for 1 Bhat of Gold was 21000 now it is around 19000 Bhat. Guaranteed In the next year the price will go back up to over 20,000. You won't make alot and you won't lose alot but you might make a little or lose a little if you need to sell.

My advice is buy a small safe and dip your toes in the water

who guarantees the gold price increase?

4 years ago gold lovers were convinced gold will go UP and UP and UP. today they are looking at a loss of 38% plus the loss incurred what their capital would have earned in 4 years.

summary: those who bought in 2011 did not lose a little, they lost BIG!

[ggt]

Kingworldnews.com for news concerning world events which affect gold...

Kitco.com can give you up to the minute PM (precious metal) prices on your computer desk top...

Gold is a solid investment commodity...over the years it has beaten paper money hands down...

Think of it like this...you are purchasing gold/silver as a form of insurance against the failure or devaluation of paper money...

Precious metals could go much higher in coming years as people realize that the fiat currency they are holding is practically worthless...

Do not purchase gold certificates...certificates are bogus as 1 oz of physical gold is sold to many different people on paper certificates...but if everyone tries to take possession of their gold...the Ponzi scheme would collapse and no one would get any gold...the certificates would be worthless...

Storage is another issue...this is where you really need to do some careful planning...you can take possession but you must be extremely careful not to tell ANYONE least your gold mysteriously disappear...you can have it stored in gold depositories around the world...one is in Singapore...for a nominal monthly fee...and some companies will sell you the gold and store it for you...

Gold and Silver are REAL money...not like paper money which is a promise to pay and is totally dependent upon economies and governments...

Start small...get a feel for the investment...then proceed with confidence...

Purchase 1 Oz Gold and Silver bars and rounds...(.9999) purity...you can not go wrong...

Good Luck...

[Transporter]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

I completely disagree with this entire post. I bought 40 B of gold and sold it a few months later making over 6000 baht per B of gold. How can that be bad?

I don't agree with paying a financial advisor either. They will charge you more than you will make.

Gold is much better than the banks if you are careful. Buy low only and sell when the price hits your target. Only buy again when it goes to your lower target. All you need to do is stick to your plan rigidly. You may have to be patient.

Don't waste your time with AIA either. Its rubbish. All I ever hear are bad stories of people not getting what they were promised.

With gold it always has a value unlike Bitcoin or worse still Utoken. Leave this rubbish alone as well.

Whatever you do though do not ever store your gold or valuables in a safe. Safes are not safe.

You are better off keeping stuff like that in a very clever hiding place that only you know about and don't be seen going to and from it. Just ask the police how many safes are stolen from peoples homes. During the day and at night; It doesn't matter here in Thailand. So don't go putting pictures of your gold all over Facebook either! Do it stealthily.

Buying and selling gold is easy and a lot of fun unlike spreading your money across different banks. What a load of unnecessary hassle and for what? 1.5 - 2% if you are lucky and have a large amount to invest.

Check the price of gold 5 years ago and ten years ago and then now. Gold is being used up a lot in electrical items and not much is recovered so the amount is slowly depleting which means the value will always go up eventually. Anyone who says it is a bad investment must need a financial advisor or money doctor - Same thing!

[gerry123]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

Google "Gold is a bad investment" why dont you google Gold is a good investment !!??

[CrummyJuggler]

My favorite topic. The first 5 words of your post say a lot. But if you do decide to buy, look at American Eagle gold coins. First you have the value of the gold itself, but then there is additional value based on the rarity of the coin, both should increase over time. Very popular option and easy to trade. Your concern about selling half of a 1M baht gold piece is simple, you trade in your piece and get a 500k baht and a 500k baht piece in return. But if gold were such a great investment, why is price of gold falling when Grexit is looming? If the American dollar is on verge of collapse, as so many here are predicting, why is gold falling? Gold is a safe haven right? Maybe not. Gold has few practical uses, certainly not enough to justify it's price imo. The price of gold goes up because of inflation, just like everything else. If you want to own some, fine, just don't call it an investment.

[sanuk711]

My advice is buy a small safe and dip your toes in the water--asiaj

Buy gold or do not buy-----but whatever you do --do not even think about buying a small safe, Unless your going to put nothing in it, & hide your money in some secret place. I worked for Chubb safes in NZ in the 70s one of our jobs was lock outs......& attempted brake ins --you wouldn't believe how many people can forget a 3x2 digit combination.---a lot more people than those who failed to brake into the safe.

I think the longest it took us to open one of the more high end safes was 80 minuets----the small safes, they were a joke.

Edited June 25, 2015 by sanuk711

[neeray]

100 baht a trade I think

not per trade but per Baht weight. for very small weights ½ Baht and 1 Baht the buy/sell premium is much higher.

by the way, big thanks to the OP. he brightened my dull day. but my dogs looked quite confused when they watched me rolling on the floor roaring with laughter after reading his scientific posting combined with the sound advice from an obviously experienced investor.

My Mother was often heard to say....."How will you ever learn anything if you don't ask questions"

Good answer !

[12DrinkMore]

BullionVault.

Minimal spread.

Mininmal dealing costs.

Buy/sell in any amount down to 1 gramm.

Secure low storage costs.

24/7 dealing through internet.

The GF does not have access.

Only downside is that you do not get to physically handle the stuff.

[macca3248]

Most gold sold in Thailand comes from the perth mint...

Contact them about purchase and storing ...

A lot safer than Thailand

[NeverSure]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

Google "Gold is a bad investment" why dont you google Gold is a good investment !!??

Good investment.

In Sept. of 1980, Gold was $2,000 USD per ounce. This was on the London market. I don't know about baht fx, but today that would be about 67,000 baht per once.

If instead of buying gold you had simply bought $5,000 worth of Walmart stock, it would today be worth more than USD25 million dollars.

Take your pick.

[asiaj]

I buy Gold with any spare money i have left over and don't look at it like a investment just a form of currency which you can check daily. Earlier in the year the price for 1 Bhat of Gold was 21000 now it is around 19000 Bhat. Guaranteed In the next year the price will go back up to over 20,000. You won't make alot and you won't lose alot but you might make a little or lose a little if you need to sell.

My advice is buy a small safe and dip your toes in the water

who guarantees the gold price increase?

4 years ago gold lovers were convinced gold will go UP and UP and UP. today they are looking at a loss of 38% plus the loss incurred what their capital would have earned in 4 years.

summary: those who bought in 2011 did not lose a little, they lost BIG!

Time will Guarantee gold price increase that is always a certainty.. Surely only spouses bought gold at 27,000bhat a bhat in 2011 not real investors! ;-)

[MauiSteveBKK]

As A Certified Financial Planner (CFP) here in the USA,

I've only managed my own money. Never anyone else's money.

But I Will Tell You This:

I have never, ever owned a piece of gold.

I will never, ever own a piece of gold.

It moves upward and downward in "life cycles".

I've made incredible money in the last 9 months, buying Apple (AAPL) at 87 - 92 and watching it go up to 130.

I am about 90% invested in USA Mutual Funds.

I don't know a thing about real estate.

I don't know a thing about commodities.

My Wife Is An International Currency Trader and Day-Trader on the SET. She does well.

Learn and invest in the SET.

Phapassorn uses 2 different marketing guys with "technical analysis", and belongs to a large Investment Group in BKK. She invests

each day, whether we are living on Maui, Hawaii or in our BKK condo.

Learn. Study. Be Smart. Ask For Advice.

Good Luck.

[SOUTHERNSTAR]

^{Go and Google gold's real return vs the S&P real return over the last 40 years and you will find that gold has performed as good as most stock index. http://www.zerohedge.com/news/2013-06-20/visualizing-gold-and-stock-returns}

^{You can rent a deposit box at the G4S facility in Silom street across from the BKK Christian hospital or can try and get one at your bank.}

^{If you are a person that likes to learn from history you should have between 10% and 15% of your assets invested in gold or silver. This part of your investment porfolio will not generate income but will be your insurance policy against a massive stock market and or bond market crash.}

^{Gold also provides protection against the depreciation of the Baht. Its interesting to note that last year gold in Euro terms outperformed many EU stock markets, even though the gold price was under preasure. With the Baht/USD exchange rate under preasure at present you could see an increase in the Baht price of gold (even if the USD value of gold comes down).}

^{If you want to get rich don't buy gold. If you want a balanced investment portfolio that covers you against the day the paper ponzi scheme comes down, you buy and keep gold. At present I would also look at silver as the price ration gold:silver favors a silver price increase. There are also rumors of a massive Chinese purchase of silver. http://www.examiner.com/article/china-s-demand-for-silver-could-be-behind-jp-morgan-s-accumulation-of-the-metal}

[bazza40]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

Gold is not an investment, it's a currency hedge. It's not such a bad idea when you consider the American dollar - the world's reserve currency - is underpinned by 16 trillion dollars in debt. And most other countries are scrambling to devalue their currencies to match the US money printing. As far as I know, Thailand still unofficially pegs the baht to the US dollar.

Gold does not give any return on investment. If you buy a ten baht ( equals 5.2 oz approx ) gold piece in Thailand, it will cost you on current prices about 190,000 baht. However, the gold shop will only buy back from you at about 180,000 baht, so the value needs to go up to 200,000 baht before you start to break even.

I don't think anyone regards Chinese and Indians as idiots when it comes to money, and they are the nations that are major importers of gold. The Chinese in particular are long-term thinkers, so perhaps they are anticipating a currency war.

Anybody who needs a financial advisor also needs a deep wallet. Just how do you pick a good financial advisor from all the rotten apples?

[rawhod]

Time will Guarantee gold price increase that is always a certainty.. Surely only spouses bought gold at 27,000bhat a bhat in 2011 not real investors! ;-)

Ah yes...I remember 2011, the year we got married (still married and still happy BTW)

We bought the gold rings, of course, but my wife, like most Thai people, threw away the receipt. I can now only speculate as to the price...somewhere in the region of 28,000 baht/baht. I know they cost about of 7 - 8,000 baht each.

The gold here is, of course high purity and too soft for a DIY'er like me. So last time we were in the UK, I traded in the wedding ring from my previous UK marriage for a new 9 carat ring. Back in Thailand, went to sell my Thai wedding ring and got about 5,000 baht for it. However that went to help pay for the one baht necklace my wife wanted...

[Robert24]

Gold is a terrible investment, always has been. One shouldn't even think of gold as an investment. You admit you don't know about gold but want to invest in some? That's a good way to "gamble" away your money.

Google "Gold is a bad investment". Hopefully you'll get why this is a bad idea.

If all you can come up with is to buy gold as an investment, then do nothing.

If the money is in Thailand. Spread it around in a number of timed deposits with different banks. Different banks to spread out risk. You can earn something like 2.5%, maybe more.

If you're in the I'm thinking of buying gold as an investment, you need a financial advisor.

Google "Gold is a bad investment" why dont you google Gold is a good investment !!??

Good investment.

In Sept. of 1980, Gold was $2,000 USD per ounce. This was on the London market. I don't know about baht fx, but today that would be about 67,000 baht per once.

If instead of buying gold you had simply bought $5,000 worth of Walmart stock, it would today be worth more than USD25 million dollars.

Take your pick.

Gold is now 1177$/ounce. Roughly 39,800 baht/ounce.

[Robert24]

I know little about gold but am considering buying some in Thailand as an investment. The gold will be bought here and sold here at some later point. I have no intentions to try and sell it in another country. I am just getting up to speed with the options and may even not buy any at all.

This is the scenario. Say you have x amount of baht 500,000 or 1,000,000 and rather than keep it in the local thai bank earning a small % interest you were happy to buy some gold with it. Hold it for it for a couple of years or longer no problem. However one year later you may want to buy a new Honda Dream 50,000 or something similar and you take part of your gold back to the shop and sell it. So one big 1,000,000 baht bar of gold is no good. Many smaller pieces of gold is preferable so you can part sell it any time but still keep most of you gold investment intact.

What are the popular gold sizes, easiest to sell, what purity? What size do you need to buy to not have some silly buying and selling spread? Is there a point, a happy medium where you have smaller or smallish sizes of gold rather than some single larger bar? Are there 50,000 baht sizes or similar that have a fair buying and selling spread?

BTW nobody needs to send me messages offering to sell me gold coins or silver. If I do decide to buy some gold it will be from the most reputable shops over the counter locally here in Thailand.

I think people mentioned the key points to consider:

1) Gold doesn't yield returns. So no income unlike stocks, bonds, real estate

2) storage cost. Unless you keep it at home, you have to pay for storage

3) gold is a good additional investment in my opinion to diversify your portfolio. Traditionally Gold does well in times of crisis. So for me it's a bit a hedge or insurance for other investments I have.

4) if interest rates increase and inflation is not picking up, Gold may loose in value as interest bearing investments become more attractive. Bear this in mind. Especially if you think the FED is starting to tighten monetary policy later this year.

Hope this helps.

[Guest]

As a person who made a considerable sum of money in stocks and bonds, and managed considerable levels of assets for high net worth individuals ... gold has a place in a portfolio, but only a small fraction of it.

The gold we have is via my wife's jewelry. Like many Thais, she is hard wired that gold is the thing to have (and land.)

She has no interest in gems, or the latest fashion .. an old fashioned girl, she likes gold.

That works nicely for three reasons:

(1) She looks great in it,

(2) Real gold looks real and you can not fool any Thai with gold plated jewelry. You will learn that the most respected shops in BKK / Chinatown have their own marks and patents. Oly buy gold from them, to ensure resale value.

You will go to Chinatown and see 10 large shops on one street. Nine will be empty, one will be 4 people deep at the counter. That is where to buy gold.

Point being, when we are out on the town, and people see her with a Farang, that gold ring, bracelet, necklace, earrings, etc... answers one question loud and clear. "These two are a couple and married."

It gives her (us) big face and that is a good thing.

(3) Thais accumulate wealth and retirement money over the course of a lifetime and hold it as gold. I intend to continue the pattern of gift giving on birthdays, anniversaries, new years, etc .. to see her happy of course .. but also as a way to transfer money to her for someday in the distant future when i may not be around. By then it will be a significant pile of gold, that may come in handy for her.and the family.

This is my way, and i do not want to argue. I do not give her family cash, because they gamble it. Not much, but it is the principle of the thing. I only pay the medical bills, and buy essentials in person when they visit BKK once a year.

So, the this is my way to give her money for later when she may need it .. without "giving her money."

I believe gold is a good buy now, and in the next few years will not lose value, it is really at a bottom, and has a very strong chance for a run upward.

There is only so long the current international debt / money / ponsi scheme can hold up.

Consider a program that goes like this. It is called dollar cost averaging.

Set a purchase amount. call it 20,000.

Only buy 20,000 every other week, or as close as you can get to it.

This ensures you buy a lot when it is cheap, and a little when it is expensive.

The problem is loss and theft. it sounds like you have money, so sit down at your bank and find out what it takes to get a safety deposit box.

If you can not get one, there are many ways to keep and hide gold safely in a country where break ins are rare.

Example: Paint the inside of an ordinary small glass jar black. Paint the outside too. Fill it with rice and gold (and coins to help sink it). Drop it in your toilet tank. Add one of those cleaning things that turns the water dark blue.

They may open your fridge for a snack, they may turn the place upside down .. but in the toilet? "Not so much."

I was in a fire once, so now keep my passports, cash, cards, etc all in a bag ready to go. (No, not in the toilet. ) All my data lives in the cloud. I can get my wife, that bag, put on some shoes, leave the building, and start over in about an hour. You can laugh if you want, but I have actually rehearsed this drill so I know exactly what to do.

Any way, go ahead, buy 20,000 a week for every other week. Confident you will not lose money, and will achieve your long term goal.

I am not one of those alarmists, but do know that in SEA, gold is king, and if the solid nitrogenous waste ever does hit the oscillator, you will be happy to have a handful of gold.

Sorry for the long reply ... got rambling there...

Edited June 25, 2015 by Guest

[Linzz]

Why do so many people on here think gold is infallible? Gold has dropped from US$1912 per ounce in 2011 to $ 1177 per ounce today 2015? (About -38.5%) Or do you think the value of the USD has gone up with quantitative easing?? Then you have to store it too..........

Edited June 25, 2015 by Linzz

[JeremyBowskill]

100 baht a trade I think

not per trade but per Baht weight. for very small weights ½ Baht and 1 Baht the buy/sell premium is much higher.

by the way, big thanks to the OP. he brightened my dull day. but my dogs looked quite confused when they watched me rolling on the floor roaring with laughter after reading his scientific posting combined with the sound advice from an obviously experienced investor.

My Mother was often heard to say....."How will you ever learn anything if you don't ask questions"

My Mother was often heard to say....."A fool and his money are soon parted" wonder who's mother is best listened to for gold investment advice........

[Asiantravel]

Gold.pngWhy do so many people on here think gold is infallible? Gold has dropped from US$1912 per ounce in 2011 to $ 1177 per ounce today 2015? (About -38.5%) Or do you think the value of the USD has gone up with quantitative easing?? Then you have to store it too..........

that is only because the regular smash downs in the gold price is paper gold being sold in very large amounts. The paper gold market is 100 times bigger than the physical gold market ( which in itself is Alice in wonderland stuff ).

But as long as the Indians, Chinese, Russians and Arabs ( that is 60% of the worlds population ) keep accumulating the real stuff i will too.

p.s. the West will left with paper