Wednesday, October 22, 2008

Gold price

The Gold price today is the lowest ever within this two months 720 USD per Ounce! Moving in the opposite direction as the USD currency which remains stong against Thai Baht, the constant decrease of gold price is pure speculation driven! Obviously nothing to do with the traditional relation of supply to demand. But today, gold is hard to find due to demand over supply and the price that is tempting for us. Even if you want to buy gold in Thailand now, you'll have to pay 10 days in advance before you get it. Speculors might have bought a lot to stock it, wait for the right time when gold is hard to find, then resell it back to the market in soaring price.

Basically, the price is affected by (1) the universal gold price, (2) THB against USD currency.
High price, low THB (against USD) = best time to buy
High price, high THB (against USD) = depending
Low price, low THB (against USD) = depending
Low price, high THB (against USD) = worst time to buy

(one ounce = two baht / one baht = 15 grams)

How to calculate Gold price in Thai baht
[USD /ounce × 965 ÷ 995 ÷ 2.0404 × USD currency]
e.g. 722 × 965 ÷ 995 ÷ 2.0404 × 34 = 11,668.23
The gold shop in Thailand will add margin profit based on this price.

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