The Thai gold rush: buyers flock as prices hit two year low

[MrPlum]

Cyprus showed that governments and banks now regard depositors as fair game. You would expect a shortage of gold as depositors in Europe and other countries, indebted to the banks, transfer assets to physical metals. Or is there something wrong with that logic?

[Bristolian]

Cyprus showed that governments and banks now regard depositors as fair game. You would expect a shortage of gold as depositors in Europe and other countries, indebted to the banks, transfer assets to physical metals. Or is there something wrong with that logic?

At least for me, the logic is sound. Unless the value of gold is already artificially high. In that case you look, perhaps, at undervalued currencies and a safer place to bank!

[StevePIraq]

Because the density is so similar to gold (tungsten is only 0.36% less dense), tungsten can also be used in counterfeiting of gold bars, such as by plating a tungsten bar with gold,[54][55][56] which has been observed since the 1980s,[57] or taking an existing gold bar, drilling holes, and replacing the removed gold with tungsten rods.[58] The densities are not exactly the same, and other properties of gold and tungsten differ, but gold-plated tungsten will pass superficial tests.[54]
Gold-plated tungsten is available commercially from China (the main source of tungsten), both in jewelry and as bars.[59] Quote from Wiki ---- Let the buyer beware!

This is why one should not buy bars from gold shops only a certified mint or reseller such a Guernsey Mint or Perth Mint etc, they will also hold the gold for you so there is never a need to actually posses it which in itself posses great risk such as theft.

[Bristolian]

Cyprus showed that governments and banks now regard depositors as fair game. You would expect a shortage of gold as depositors in Europe and other countries, indebted to the banks, transfer assets to physical metals. Or is there something wrong with that logic?

At least for me, the logic is sound. Unless the value of gold is already artificially high. In that case you look, perhaps, at undervalued currencies and a safer place to bank!

Thailand is one of those currencies that is seeing inflows... Too much inflow of foreign cash!

Baht At New 16-year High
By The Nation
BREAKING NEWS
Thai baht continues the sharp appreciation.
At 8.18am, it hit a new 16-year high at 28.71 per dollar, gaining 2.02percent from end-March, according to Bank of Thailand data.

Month to date, the currency also gained 6.40 per cent against Japanese yen, at 29.26 per 100 yen.

It also appreciated by 0.17 per cent against euro to 27.478.

[deepee]

Cyprus showed that governments and banks now regard depositors as fair game. You would expect a shortage of gold as depositors in Europe and other countries, indebted to the banks, transfer assets to physical metals. Or is there something wrong with that logic?

Your premise here is that those entities with all their negative positions can in fact liquidate their assets at a reasonable sum to invest in gold. Me thinks that that would be not their case.
But on the other hand a vast majority of the world producers ,something like 90% I recently read, are very marginal producers at the top price and will fall over with the current price drop creating a shortage in the very near future and possibly a short term rebound, so may be the Thai punters could be laughing after all.

[MrPlum]

If the paper gold market is 100x the physical gold market, then any action on the paper gold exchanges will move the price heavily. So I think short term moves have more to do with JP Morgan 'boiler room bashers' going on to GLD message boards and frightening day traders, etc.. in to selling. When the price starts to drop like a stone.. as panic sets in... you see them posting 'Timbeeeeeeeerrrr.....!!!' I've seen it time and again with 'story' stocks. Just didn't expect it with gold.

Regulators should do something about market manipulation but insiders have them in their back pocket.

[musungu]

Thais' seem to have a very great capacity for sitting back on their investments until there is a profit, even if it is many years.
I have come accross so many that have land or a house and if say a near neighbour sells for a certain amount he will not generally sell for anything less - the high prices of say 5 yeras ago and now for example, he sits.
So with gold he will wait and I believe there will see upward movement, but it will take a longtime - nexluding the small ups and downs which one would expect

[StevePIraq]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

[Ginjaninja]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

Reflective of my African Barrick shares going down on me like a futha mucker...




GN.

[musungu]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

My reading of the market is that $1275 will not come as a surprise and they thought this back in April

[PET]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

After your Sterling / Bhat guess of 'down down down ' I wonder ?

[StevePIraq]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

After your Sterling / Bhat guess of 'down down down ' I wonder ?

Are you suggesting 48.25=1GBP is good, the pound is not recovering it is purely a blip in the strength of the Baht. The Pound will continue to drop further as long as the UK has no real economic plan in place. And gold will go down further than todays price.

[Dannie Boy]

Gold now at US$1388, my expectation was US$1300 as the bottom limit so not far to go now.

After your Sterling / Bhat guess of 'down down down ' I wonder ?

Are you suggesting 48.25=1GBP is good, the pound is not recovering it is purely a blip in the strength of the Baht. The Pound will continue to drop further as long as the UK has no real economic plan in place. And gold will go down further than todays price.

I guess it's all relative - compared to what it was 6 years ago the exchange rate is about 20% down, but compared to 2 months ago about 10% up, whether its short term or not, we must be grateful for small mercies.

How many Thai baht I get to the pound concerns me and many others, what the price of gold is has no real interest to me, nor I dare say to many expats living here unless there into speculation.

[StevePIraq]

For anyone on a fixed UK pension or any sort of fixed Euro pension it truly is terrible for them.

However the topic was about Thai Gold Rush not exchange rates.

[nanyang]

Experts suggest that the incoming Bank of England governor may well want to see the pound even lower than it currently is.