PattayaMale Posted February 18, 2009 Posted February 18, 2009 Before looking at the article below, I was surprised today when my Thai friend ask me if I thought it would be a good time for him to sell an 8 baht gold bracelet we bought very early in our friendship.....when I was more naive than now. He never wears it and I did suggest that he keep it as an investment and over the last 7 years I never even thought about it as he had it stored in his personal safe. (We each have our own safe. His is his alone and mine is for both of us it seems). I asked him to let me think about it since I am not sure. Any suggestions? Local gold prices have hit an alltime high, soaring to break 16,000 baht per one-baht weight (15.16 grammes), following rising world gold prices as investors continue to seek safe-haven bullion as the global economy deteriorates. World gold futures rose to more than US$954 per ounce, reaching a seven-month high. Thai gold prices were yesterday quoted at 15,750 baht per one-baht weight for gold bars and 16,150 baht per one-baht weight for gold ornaments, rising from 15,400 baht and 15,800 baht respectively. Gold Traders Association chairman Jitti Tangsithpakdi said local gold prices would continue to fluctuate and increase significantly in line with global gold prices. In Hong Kong, the major gold trading market in Asia, bullion climbed to US$959.05 an ounce, the highest since July 22, thanks to demand from investors who are fretting about a further slump in the global economy and looking to the commodity to preserve their wealth. Domestic gold prices increased six times yesterday. However, Mr Jitti did not expect people would flock to sell gold since they sold a large quantity three weeks ago during the Chinese New Year period. Many gold shops have been less active recently. ‘‘There is a chance that gold bar prices will move up further. We think it’s time for gold owners to shed a certain portion of their gold holdings to take profits,’’ he said. Quote
Guest shebavon Posted February 18, 2009 Posted February 18, 2009 Well, you never go broke taking a profit. Hopefully your mate will find a better place to put it, but if you ask me, we may be seeing $1500 gold in the next six months. Quote
Guest lvdkeyes Posted February 18, 2009 Posted February 18, 2009 I'd hold on to it and watch the gold prices. If they begin to drop over a few days sell fast. Quote
Guest RichLB Posted February 18, 2009 Posted February 18, 2009 I was asked the same question by my bf today. I suggested he hold on to it. My reasoning was based on rumors (NOT facts) that Thailand my devalue their currency. If that happens, the money he receives for his gold will likewise be devalued while the gold - more influenced by the world market - would likely hold its original value. Also, I think, as the world currencies grow less secure there is likely to be a move to precious metals. Since my bf had no real demand for whatever money he would receive, I saw no reason he whould cash in his gold - even though he also never wears it. Mitigating all this, though, is the fear that the US, since it's currency is no longer back by gold, may elect to dump its reserves to bouy up the sagging dollar. I've heard no mention of this, but it's something to think about and if it does, gold prices will drop. I also suspect that as more and more Thais are seduced by the current high price of gold, many will sell. This should, in the short run, cause prices to drop for awhile but I think they will start soaring again. Take all that with a grain of salt. I'm most probably the least informed guy there is about these things. But I thought I'd give you my reasoning behind my suggestion to the bf that he hold onto his gold. Quote
KhorTose Posted February 18, 2009 Posted February 18, 2009 Mitigating all this, though, is the fear that the US, since it's currency is no longer back by gold, may elect to dump its reserves to bouy up the sagging dollar. I've heard no mention of this, but it's something to think about and if it does, gold prices will drop. I also suspect that as more and more Thais are seduced by the current high price of gold, many will sell. This should, in the short run, cause prices to drop for awhile but I think they will start soaring again. The two biggest gold reserves were the USSR and the USA. Now almost no country in the world has a good reserve. That gold was sold off years ago. Many banks do carry gold and silver reserves as investments. One thing that has kept the price of silver so low is that the banks did start getting rid of it to get cash during the recent crunch. However, they are still holding on to gold, just as a hedge against inflation. I think you gave your BF good advice. I plan to wait until the end of the year to find out what inflation and the economy does. You may be very correct about the Thai Baht, and maybe even the USD. However, I have found no one that can predict with assuredly what is going to happen in the next 10 months, so gain of salt time on any advice. Quote
Guest fountainhall Posted February 18, 2009 Posted February 18, 2009 as more and more Thais are seduced by the current high price of gold, many will sell. This should, in the short run, cause prices to drop for awhile I can't see how Thailand can have much influence on the world price of gold, if only because the huge populations of China and India have been in love with it for a long time. Quote
Guest laurence Posted February 18, 2009 Posted February 18, 2009 My experience has been that the price will drop and people profit from their investments. Gold coins (1 oz) seem to reach $1000/coin and then drop to $800 and rise again. Now they are at about $1100. I expect the price will drop, but who knows? Only advice I have is if prices drop to $800, then buy. When to sell? Only if necessary, otherwise wait. Quote
PattayaMale Posted February 19, 2009 Author Posted February 19, 2009 I really appreciate the well thought out responses. One of the reasons I prefer this forum. I read the posts to my friend. He seems to like the thought that it may go up in value. He also said that it is better to save it because if he gets money he will spend it for sure! Quote
Guest fountainhall Posted February 19, 2009 Posted February 19, 2009 There was an analyst (yeah, I know - often 'anal') on CNBA Asia this morning who is not so bullish on gold. He presented a chart showing how gold has moved in step with oil for several years - until last year. There is now a major divergence. His view is that with the depressed economic outlook, oil is not going to move up much anytime soon; so gold has to come down. Wish I knew! Quote
Guest shebavon Posted February 19, 2009 Posted February 19, 2009 We cannot forget that the US Treasury is borrowing and spending huge sums on Iraq and the Economic Stimulus. If history is any guide this will be paid back with inflated dollars. This bodes well for Gold bulls. Quote
fedssocr Posted February 19, 2009 Posted February 19, 2009 I read the posts to my friend. He seems to like the thought that it may go up in value. He also said that it is better to save it because if he gets money he will spend it for sure! Well, there you go! If you don't need the money now it is probably worth holding onto the gold. I know some gold boosters are predicting the price to soar over $2000 per ounce as currencies become devalued due to the fallout from today's crises. Quote
