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

[webfact]

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

By THE NATION

 

 

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

 

-- © Copyright The Nation Thailand 2020-04-14

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[Curt1591]

1 minute ago, webfact said:

“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.

I'm sure the present shutdown induced lack of income may have something to do with the selling of gold. 

[Cricky]

19 minutes ago, webfact said:

Gold shops suffer lack of cash

After all these years of making huge profits, confiscating gold from poor Thais that never returned to pick up their assets because they were unable to find the money to repay the little money they received for selling their gold.

Many fortunes these gold shop owners have made.

 

It's about time the gold shop owners suffer, sell those BMW;s and Mercs. 

These poor people need to sell their gold, they need their money now to survive, they have no food.

[Curt1591]

5 minutes ago, VYCM said:

After all these years of making huge profits, confiscating gold from poor Thais that never returned to pick up their assets because they were unable to find the money to repay the little money they received for selling their gold.

Many fortunes these gold shop owners have made.

 

It's about time the gold shop owners suffer, sell those BMW;s and Mercs. 

These poor people need to sell their gold, they need their money now to survive, they have no food.

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

Edited April 14, 2020 by Curt1591

[cooked]

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.

[Toany]

8 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.  

It is the normal way that gold shops work. You take in you gold jewellery and borrow money on it and pay 1% interest.  They work the same way as a porn shop. I have Thai friends who do it regularly

[chris2004]

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

[tomacht8]

15 minutes ago, chris2004 said:

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

The gold shops are the banks of many people in Thailand.
Gold is the savings book of many for bad times.

[poohy]

28 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.  

Sorry you are wrong ..most if not all, do it!

[Curt1591]

8 minutes ago, tomacht8 said:

The gold shops are the banks of many people in Thailand.
Gold is the savings book of many for bad times.

These are hard times. 

Most people never return to pick up their items. They just "pawn" it because, at a lesser offer, it's easy, quick money for the seller. 

 

8 minutes ago, poohy said:

Sorry you are wrong ..most if not all, do it!

My gold shop, of over 20 years, simply buys and sells gold, their gold only. They won't touch anything off the street. 

You buy at their sell price; you sell at their buy price, both hovering around spot. No negotiation. They work off small margins and fluctuations. I like it this way.

In the case of jewelry, there is also the "labor" charge when buying. Of course, this is not added if one is to sell back to them. Small jewelry is not a good investment. 

 





 

[fforest1]

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

[Grumpy John]

1 hour 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 have much to learn young grasshopper.  

[Grumpy John]

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. 

[OnTheGround]

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.

[Vigilante]

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

 

[JimmyTheMook]

Just now, Vigilante said:

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

 

 

Idiots who store gold will learn the hard fact nobody wants to buy it back for cash when the prices are sky high in a pandemic - throws the whole 'the sky is falling theory out the window' and hold gold in place of cash.

 

 

 

 

[piewarmer]

I see the gold shops open but they have empty display cases (In CM anyway)

[parallaxtech]

11 minutes ago, JimmyTheMook said:

 

Idiots who store gold will learn the hard fact nobody wants to buy it back for cash when the prices are sky high in a pandemic - throws the whole 'the sky is falling theory out the window' and hold gold in place of cash.

 

 

 

 

Koh Samui gold shops are buying back gold bars at 4K baht less than the spot price.  Is that normal?  When I bought gold bars they said I could sell it back at spot minus 100 baht.

[Vigilante]

3 minutes ago, parallaxtech said:

Koh Samui gold shops are buying back gold bars at 4K baht less than the spot price.  Is that normal?  When I bought gold bars they said I could sell it back at spot minus 100 baht.

Not normal but when you buy (mickey-mouse) thai gold with its' arcane rules anything can happen.

[cooked]

30 minutes ago, JimmyTheMook said:

 

Idiots who store gold will learn the hard fact nobody wants to buy it back for cash when the prices are sky high in a pandemic - throws the whole 'the sky is falling theory out the window' and hold gold in place of cash.

 

 

 

 

I'll bear that in mind when the ATM's stop working 'as a temporary measure' and internet goes down.  I started buying 10 years ago, ฿16 000, now worth ฿25 000 I believe.

[RichardColeman]

4 hours ago, webfact said:

or ask customers to receive their money at a later date,

Yes, I am sure shopkeepers will believe everyone that says I'll pay for my groceries in a month or so

[OnTheGround]

1 hour ago, piewarmer said:

I see the gold shops open but they have empty display cases (In CM anyway)

 

Robbery increasing already

[JimmyTheMook]

1 hour ago, cooked said:

I'll bear that in mind when the ATM's stop working 'as a temporary measure' and internet goes down.  I started buying 10 years ago, ฿16 000, now worth ฿25 000 I believe.

 

- 4000B when you try to cash back at spot price.

 

 

[wcoast]

I bought a bunch in oct 2018 when gold went down to 18,250 baht, today I can sell it for 26,000 per baht minus 100 per bar, nice return on the investment today, but I think it will go higher.

[Number 6]

4 hours ago, Toany said:

They work the same way as a porn shop.

I'm doubting that...

[steven100]

4 hours ago, chris2004 said:

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

to loan out cash on gold as security.

[steven100]

2 hours ago, cooked said:

I'll bear that in mind when the ATM's stop working 'as a temporary measure' and internet goes down.  I started buying 10 years ago, ฿16 000, now worth ฿25 000 I believe.

I have a fair amount stored for future ....  but try selling and you won't get 25,000 ...  you'll get much less than that

 

 

 

Edited April 14, 2020 by steven100

[DLock]

Gold (ingots) has always been part of my investments, and I have done really well, and still hold quite a bit...

 

But the gold most of the posters post about are 1 - 5 baht jewelry pieces that are used as status symbols until they need money, and not a proper investment.

 

Gold bars attract no VAT and should sell pretty close to spot price, and attract no "creative" fees in a normal market. During a pandemic, rules change.

 

I mean, who would expect to see the US stock market rise record levels up 20% last week from mid March, yet unemployment and business closures at record highs? Strange times.

[jimmjam]

6 hours 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.  

every gold shop here will take your gold for a loan, you have a set date for when you have to pay back and claim your gold, or you can extend for an extra amount that's added.

[jimmjam]

2 hours ago, Number 6 said:

I'm doubting that...

they do