Thailand’s Gold Market

Introduction

Physical amber is a popular asset in Asia, and this is no different in Thailand, the continent ’ s third-largest amber grocery store after India and China. Locals use physical gold as an investing and vitamin a well as ornament, and the metallic is a popular endow for newborns and for weddings. In Thailand, the standard fineness of gold is 96.5 % purity, normally referred to as 23K, frequently bought in the human body of jewelry, gold bars or coins. Baht is not alone the local currentness but besides the standard amber unit, equivalent to 15.244 grams or 0.4901 troy ounces. Thai Gold is besides measured in salung, which is a smaller unit of measurement when compared to baht, where 1 salung is 0.25 baht, or 3.81 grams.

Domestic Demand and Production

metal Focus reported the sum physical investment demand in Thailand in 2016 was 70 tonnes, and the same report shows that the Thai amber jewelry demand was 22 tonnes. The entire consumer demand for aureate was 92 tonnes. additionally, the Bank of Thailand, the country ’ sulfur central bank, holds 152.4 tonnes of aureate in its official international reserves ( IFS, January 2017 ). There are nine gold bar manufacturers that are members of the Thai Gold Traders Association. They manufacture ordinary baht bars, traditional baht bars ( cookie, square, egg-shaped, round, rectangular, boat, and ring ), and innovative bars with a honor of 96.5 %, 23K as standard, and besides 99.99 % ( 24K ).

additionally, newspaper gold is available in Thailand, including the 50 Baht Gold Future sign ( watch : GF ) and ETFs, listed on the Stock Exchange of Thailand. such market activities are well-supported by Thai Gold Traders Association members.

Gold Infrastructure

Gold shops and goldsmiths, estimated to act about 7,000 in Thailand, are found across the area, from large chains to family-run stores. major companies in the gold sector include YLG Bullion International Co., MTS Gold Group, Ausiris, Hua Seng Heng, and MKS, the Swiss precious metals group. Umicore operates a precious metals refinery in Bangkok, which refines precious metals from recycle materials. Its end product includes investment-grade fine gold bars. In general, the import and export of gold are conducted by non-bank enterprises, which need to register with the Ministry of Commerce, Revenue Department and Customs Department. Besides registration, they besides need to submit an FX report every quarter. These enterprises besides have to be a member of the Thai Gold Traders Association, which is the representative soundbox for the aureate industry in the area. All imports and exports of Gold is VAT excuse. VAT is 7 % as at August 2016. bodied tax is 25 %.

Conclusion

Despite being overshadowed by the larger gold markets of China and India, Thailand boasts a develop and healthy gold marketplace of its own, which is supported by strong domestic demand and well-developed trade and sales infrastructure. Thailand besides has larger physical marketplace natural process than any of its regional neighbours, including Vietnam, Malaysia and Singapore. As its neighbor countries have the potential to continue growing economically, the Thai gold market should have more room to grow.

Appendix

significant Links

  1. Ministry of Commerce – https://www.moc.go.th/index.php/moc-english.html
  2. Revenue Department – http://www.rd.go.th/publish/index_eng.html
  3. Customs Department – http://en.customs.go.th/
  4. Central Bank of Thailand – https://www.bot.or.th/
  5. Ministry of Finance – http://www2.mof.go.th/
  6. Thai Gold Traders Association – http://www.goldtraders.or.th/

Currency Import and Export Restrictions An importer may purchase or withdraw foreign currencies from their own extraneous currency accounts for spell payments upon meekness of supporting documents. Letters of credit may besides be issued without authority. By police, export proceeds of US $ 50,000 and above shall be repatriated immediately after payment is received and within 360 days from the export date. The proceeds must be sold to or deposited in a foreign currency account with an authorize bank in Thailand within 360 days of receipt.
Sample Gold Bars

Economic Data (2015)

population : 67 million
GDP Growth : 0.9 %
GDP/P : US $ 5,445
CPI : 1.9 %
Exports : US $ 225 billion
Imports : US $ 200 billion
Foreign Reserves : US $ 157 billion ( including gold )
alien debt : US $ 140 billion reservoir : FOCUSECONOMICS