Gold glitters as cash-strapped Thais sell jewellery
16 April, 2020
Thais are flocking to Bangkok's Chinatown to market their gold jewellery as the cost of the treasured metal spikes and the economy tanks due to the coronavirus pandemic.
Gold surged to a seven-year on top of Tuesday to US$1,731.25 an ounce, following global moves led by the united states to reinflate economies with trillions of dollars of stimulus measures.
That has boosted the price of gold across the world, tempting many to sell their stocks of the treasured metal at the same time of economic hardship without recent precedent.
Many Thais buy gold jewellery as an investment in times of plenty, to be sold when prices rise or belts tighten.
In Bangkok, in which a virtual lockdown has taken root for a fortnight, hundreds flocked to Yaowarat, Bangkok's Chinatown, to trade bracelets, necklaces and rings for cash as local gold prices jumped a lot more than 20 percent.
"I haven't any savings so I made a decision to sell the gold I have for cash to keep me afloat during this time," Thanakorn Promyuyen, a 39-year-old street vendor told AFP.
Traders have obtained tens of millions of dollars worth of gold since Tuesday, according to Jitti Tangsitpakdi, a chairman of a trade association.
"One shop bought 200 million baht ($6.1 million) of ornaments and bars," he said, explaining businesses whose income has been strangled by the lockdown are having to market their gold savings.
"Their companies are in bad shape; better to sell gold and keep cash," he added.
"In over 60 years and I never seen persons queue like this to market their gold."
Thailand's economy is forecast to contract by a lot more than five percent this year after the virus shuttered borders - killing the money cow tourist industry - leaving millions unemployed.
"I haven't any income, only expenses," said 43-year-old Aumporn Pansa as he sold his jewellery.
"I've kids to look after as well as monthly bills, so I had to come here and sell.”
Source: www.thejakartapost.com
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