How to trade gold in Thailand commodity market.

How to trade gold in Thailand commodity market. 

Gold trading was one of the most lucrative businesses in the world. Every single minute's gold was a trade on the spot market and bulk gold market scene, what we call a physical gold market.

A major gold bullion distribution and the trading house which doing their part in UK London Metal Exchange, US CME and Europe Swiss Credit Suisse Gold.

Apart from using gold as financial portfolios for country economics, mega company investment schemes like Goldman & Sach, what drive the world market gold consumption?

Use of gold in industry and manufacturing. Many of this company have lock and order gold for next two years. All the main metals use in industries were purchase in the form of future nature.

It is the people who appreciate gold who drive gold market consumption. As i say market consumption, not gold price. The daily gold spot price effect by speculator and brokers for small commissions.

Gold in Thailand commodity market

People all over the world, using gold in jewelry and gold artifact or gold bullion. The purpose of gaining the yellow metal was an investment, personal appreciation and tradition like a wedding ceremony.

Western gold jewelry standard start with 14K to 18K purity and most Asia country use gold as much as 22K to 23K gold purity in their jewelry. The differential in gold preference standard makes Thailand using their gold design, color, purity, and weight.

Thai gold has more beautiful yellow color, beautiful design jewelry that i think made ages to produce, the textured surface, gold flake alike leave. They even have money tree look a like from gold and the important `bath` weight for gold . 1 bath equivalent to almost 1/2 troy ounces or 15.24g.

Using this requirement, Thailand Future Exchange (TFEX) have a future investment product base on gold market that drives Thailand gold trading. It was to meet local demand and appreciation for gold. Thai people have been buying gold for ages. Pass from grandmother to granddaughter; gold was seen as saving and sense of security.

There two type of the main products. First, ten bath gold delivery in the spot or up to nearest future three months. Second 50 bath gold delivery which at a larger quantity. Both products is having 23K or 96.5% gold purity.

Thai gold does deliver in the commodity market.

Their price is affected by world spot market price and controlled by TFEX regulations. What makes it is a major different from spot gold markets like CME gold future is that there is physical gold delivery upon completed purchase contract. The contract for spot ten bath gold contract can be concluded in 4 days. You are expecting to get real gold in weight about 152.4 g.

Secondly, the market can be reached easily by people. There were about 20 or more selling agent or big gold shop with a reputation that approve by TFEC to make the trade. Normal trading house register with TFEC can provide selling and buying gold commodity process as per normal broker. The gold market maker or selling gold shop are providing many other services as well. They clearly can do as below,

1. Buying or sell gold at daily spot price

2. Future spot gold order, i,e, short selling

3. Opening accounts for online and telephone booking

4. Received deposit of gold order, not regulated. Normally 10% - 15% of total contract value.

5. Delivery and  Collection of gold

6. Keep safe, or vault services.

There several operating gold wholesaler that doing business at higher professional level. Gold shop like MTS , Hua Seng Heng , YLG, Classic Gold Group .

Now how can you sell the Thai bath gold or short selling? Put it away so much easier; you make a call to the gold shop where you buy or any approve TFEC broker house, get the market selling price and got the order number. If the contract concluded, you have to deliver the gold to their office before 12 pm next day. The business will be completed within four days, and you will have your money in the cheque or deposit into account by Thailand clearing house. There are always commission charges apply.

There are other ways to safe guard your gold. You can option for the gold shop to keep your gold in their vault. They will issue a gold certificate for your gold item saving. This is same as paper gold saving in ETF gold scheme, but a big different is your can walk to the gold shop and demand your gold anytime.

In reality, Thai people do not scare to show their wealth. Gold is put on a show for family status and wealth. Most Asia country uses gold as the measurement of status, hobby, and prospecting to have good wife or husband.

For the most Muslim country, using gold and silver are appreciated for substitute currency. There was once an idea to made everyone use the same currency . I think that day will come in long future and i hope to save enough gold for my future generation. Not for wealth but the reminder of the great color of gold, if gold is depleted one day. Try yourself to trade gold in Thailand commodity market and watch the investment grow if you doing done correctly.