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Gold shops suffer lack of cash as people rush to sell their jewellery

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Gold shops suffer lack of cash as people rush to sell their jewellery

By THE NATION

 

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Gold shops have been hit by a cash crunch as people rush to sell their jewellery and ornaments, said Gold Traders Association president Jitti Tangsitphakdi.

 

“The rising gold price in the global market, which has reached a new high in seven years, has caused people to sell their gold for profit,” he said.

 

“Besides, international traders have not been able to export their gold due to a shutdown of airlines and overseas markets, causing many traders to suffer from a cash-flow problem.”

 

Jitti said some gold traders are looking into short-term solutions, one of which is getting loans from banks.

 

“However, during this Covid-19 crisis, most banks have nearly reached their limit on loans, while a lack of cash liquidity has forced many traders to repay loans late, making it harder for them to get additional funding. Eventually, some gold shops will have to temporarily shut or ask customers to receive their money at a later date,” he said.

 

“We have suggested to more than 2,000 gold shops under our association that one measure is to go in for alternate-day opening between shops to slow down the number of people selling gold while preserving their customer base,” he added. “It is also a good way to reduce crowding at these shops to prevent Covid-19 from spreading.”

 

Meanwhile, Kritrat Hirunyasiri, chairman of MTS Gold Group, one of the biggest gold exporters in the country, said his company has been affected by the cancellation of flights to export destinations such as Singapore, Australia and New Zealand.

 

“Cash flow has become tighter, causing the company to delay paying gold sellers by 7-15 days,” he said. “However, we estimate that the situation will improve in May as factories in Singapore and Australia are expected to resume operations, so export routes to these countries should also be restored.”

 

Source: https://www.nationthailand.com/news/30385935

 

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-- © Copyright The Nation Thailand 2020-04-14
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3 minutes ago, Curt1591 said:

We're talking gold shops, not pawn shops. I don't know any gold shops that loan money, holding gold as collateral.  

YOU don't? Strange that.

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1 hour ago, chris2004 said:

I am surprised that gold shops are open during this crisis. Hardly essential. Why are they allowed to stay open?

Some aren't.  The one we use in PhiChit was shut for 2 weeks...maybe still is. 

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41 minutes ago, fforest1 said:

No need to sell gold when everybody is getting 5,000 a month...

 

Only 7% of applicants has been approved, so far.

Last days news.

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I was warning about this senario weeks ago.

Keep in mind, gold hasn't really moved upwards ,in a big way yet

Imagine, in a potential meltdown and gold doubles/triples, and millions of thais run to the gold shop demanding to sell.

Gold shop-owner cannot possibly redeem but a tiny fraction of the gold he has sold

 

Lesson...stay away from thai gold

If you can buy 99.9% gold ,anonymously and not stored with a third-party vault, do it.

You can always sell it in the int'l market unlike low-purity thai gold

 

There are also fake gold bars to worry about

<deleted> it..I'm sticking with cash.

 

Have a nice day

 

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