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The price of gold in Thailand hit New High for 8 years, pushing gold bars in the country to rise 26,250 baht per line, queuing to spill the gold shop in the Chinatown area. Most gold jewelry. The reason for the stock market cash recession: layoff Accept affected liquidity The store’s gold stocks increased 300% after big-sale customers canceled flights, hurting gold exports. There are no problems in other provinces. Only the parade sells people who buy 80%
Journalists “Prachachat Business” reported that early last week (April 13, 63) there was a phenomenon in front of gold shops in the Chinatown area hoping to sell gold. After foreign gold (gold spot) prices rose to $ 1,724 / ounce, the highest in 8 years, and the gold trade association announced the price of gold in the country at 550 baht, resulting in a increase in the price of buying and selling gold bars. Come to 26,050-26,250 baht / gold baht respectively
Additionally, on April 14, there was a news broadcast that the gold trade association will discuss the government for the government to temporarily shut down gold stores. To maintain the liquidity of the operator, however, later on April 15, Mr. Jitti Tangsitphakdee President of the Gold Merchants Association Denied the news as people continue to flock to sell heavily continuously
More recently, Mr. Jitti told “Prachachat Business” he said the news that the gold trade association is proposing to the government to announce the closure of gold stores to help with liquidity. After people lined up to sell the gold, the association confirmed it was a misunderstanding. Because he did not propose to declare closing the gold store as news In addition, to facilitate people. And to reduce congestion in the Covid-19 epidemic situation, the association announced the opening of a full gold store to meet sales demand.
Gold jewelry cash sale parade
Mr. Jitti said the behavior of the sale of gold occurred during the past week for 2 main reasons: 1. The economy is slow. Resulting in people who do not have money to sell gold to sell for daily use. 2. Investors who buy gold bars for investment. Taking out gold After making enough profit From the beginning of the year to the present (YTD), the internal price of gold has increased by around 6,000 baht / baht.
Mr. Thanarat Pasawong Executive Director Hua Seng Heng Group said that after observing that people prefer to sell gold jewelry than gold bars, it is expected as a result of many companies being affected by the virus. Some companies require employees to stay home without receiving a salary. Or lay off staff daily. This group of people, therefore, wants to sell gold to save cash to spend.
“What it reflects is that people want to reserve cash to keep. It’s a strange photo. Because normally when we look at the golden cabinet counter, it will see people queuing to sell gold bars first. But now all the lines are necklaces or gold.” Thanarat said.
As for investors buying gold bars, the sale is believed to have slowed down. Since the price of gold is now quite volatile Buy and sell spreads (spreads) are still at an abnormal level. Including the purchase of gold bars for investment They tend to maintain long-term investments
The golden point is above. Do not rush to sell.
While Jitti suggests investors wanting to make a profit, but there is no need to spend that money yet. The price trend for gold is likely to further increase. Investors do not need to sell gold once. Due to the difficulty of exporting to foreign countries Resulting in abnormal gold extensions If investors sell this time, they will be at a disadvantage due to increased export costs.
“If we sell gradually, we can still make a profit. Also, if you sell slower than now, have a chance to make more profit,” said Jitti
Price exceeds 27,100 baht
Looking at the gold price trend in the next phase After the SPDR Gold Fund continued to buy gold in the country continuously. From the beginning of the month April to the present The total value of the purchase is approximately 1,041 tons. In addition, the stock market has decreased. And oil prices continue to decline. As a result, gold is a stable asset that has yet to accumulate
Foreign gold prices are expected to rise to new highs at $ 1,800 / ounce. While the internal price of gold is expected to reach the highest at 27,100 baht / baht, therefore investors should gradually make a profit. It is not necessary to sell everything at once.
Liquidity gold shop success
Dr. Kritrat Hiranyasiri, Chairman of the Board of MTS Gold Company Limited, the owner of Mae Thongsuk’s gold store, acknowledges that The rising trend in gold prices Along with public panic due to news of the closure of the gold shop, which keeps people waiting in line to wait to sell gold. Causing the financial situation of the gold shop to be tight. However, confirm that the gold shop is still open for normal service.
“Strict financial conditions Resulting when customers sell gold We may pay 1-2 days later, but if retail sales of only 1-2 baht still get all the cash. But if you sell 5-10 kilograms at a time or a lot to at the same time, perhaps only a little late. For Mae Thong Suak Thong Shop People who trade less than 2 million baht will receive a cash refund. “
However, Mae Thong Suak Gold Shop advertises to buy gold from all brands, but buying gold from other brands will cost 70-100 baht / baht gold.
Major stock sales are up 300%.
Dr. Kritcharat acknowledges that The phenomenon of people waiting in line to sell gold results in a store gold stock of up to 200-300%, or about 10 times because Mae Thong Suk Gold Shop has higher proportion of customers who sell gold than retail. Selling gold for tens of kilograms at a time is worth hundreds of millions of baht per day. There is also a small gold shop that sells gold to Mae Thong Suk.
About 100 per day
While how to manage liquidity in this condition, one party requires credit from the bank. Typically, all gold stores have bank credit and store cash to manage liquidity. But in this situation, your own cash may not be able to manage your liquidity enough
“We tried to export when there are airlines. In the past, the airline still flew normally. Then we bought and sold. But now we can export every day. It was exported for 7 days, only once, etc. Liquidity was lost. Scarce money. This Once, I have to sit down and pay customers by check 2 days, sometimes 3 days. But that doesn’t mean the gold store goes bankrupt, “said Dr. Kricharat.
April gold exports 50% off
Natthaphong Hiranyasiri, CEO of MTS Gold Company Limited, said that gold exports are expected to be quite poor in April. Initially it is estimated that gold exports will disappear at least 50% of the normal level due to the closure of airports. Cancel flights and close the city that has been the center of the gold trade in the past
The first 2 months “Import-Export” shortened
Press reports from the Customs Department indicate that during the first 2 months (January-February) 2020, Thailand imported gold (coordinates 7108) in the amount of 16,304 kilograms, worth 20,506 million baht from the same period last year, imported 23,387 kilograms. Value of 31,147 million baht and exported 51,994 kilograms worth 78,753 million baht, decreased 19,767 kilograms from the same period last year, worth 25,773 million baht
Sarasat flocked to sell gold, tripled 3 times
Due to the movement in other provinces, Mr. Wuttikrai Tirapongphaibun Owner of Suwanna Gold Shop, Chinatown (Daughter of Mae Kim Ki) Maha Sarakham Municipality revealed that the covid-19 outbreak affecting business in a chain, especially commerce business of gold very affected Because exporting to foreign markets is more difficult Due to the obstruction of the measures of control of epidemics And when the price of gold goes off There are clients who flock to sell gold in many gold stores.
This week, customers bring gold to the store, compared to the normal period more than 3 times, while customers who buy gold decreased by more than 80%. In some days, almost no customer comes to buy. Or not buying too much weight in gold. Only the gold standard changed. This situation causes working capital problems. Because each store operator has limited capital. Every day, spending millions of baht. You have to wait for the money from the central bank to be sold to transfer it back to. Then there will be working capital to buy gold. But this period is quite slow. Due to the problem of gold exports. Therefore, if the day the money is sold, the gold is transferred slowly OR the working capital is depleted Gold stores may also stop buying.
Lack of working capital reserves
Mr.Tira Tanglakunkhong Former President of the Udonthani Chamber of Commerce And the owner of the gold store in Udon Thani province revealed that at the moment, people who lack liquidity bring a lot of gold to sell. Most of them are small decorations. There are no large pieces of gold. While the gold store itself Many stores have trouble with reservations to pay customers. Please use the method for customers to bring gold to the store, and the gold store will make an appointment for payment after 10-20 days, which I would not recommend the gold store to do this
Because some stores don’t have the money to pay at the time of the appointment, keep moving and make an appointment. This type of event occurs in Bangkok and other provinces. Many of the gold stores in Udon are now temporarily closed. Because only the people who sell gold No one came to buy
Korat heavily traded for slow gold
Mr. Chana Praprithiphong, President of the Nakhon Ratchasima Gold Traders Association, revealed that the atmosphere in the gold shop is very slow right now. Also, gold shop operators have trouble with reservations. Due to not being able to sell the purchased gold Have many gold stores only buy gold from a specific small customer Who sell 1 salung of 2 salung gold or no more than 3 baht, while large customers who sell gold bullion at large quantities will not be bought because there is no money to buy
Current Situation The Gold Traders Association Nakhon Ratchasima is concerned that the economic crisis AND the Covid crisis that occurred will bring crime. Therefore, the association requests cooperation for gold shop operators in the area to take preventive measures. Pulling down the wrought iron front door AND traded it for gold through wrought iron doors AND allowing store staff to arrange gold jewelry in the store showcase to a minimum While some stores are closed temporarily because you can’t sell gold
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