Gold glitters as cash-strapped Thais sell jewelry

Source:AFP Published: 2020/4/16 20:03:40

Thais are flocking to Bangkok's Chinatown to sell their gold jewelry as the price of the precious metal spikes and the economy tanks due to the coronavirus pandemic.

People wearing face masks amid fears of the spread of COVID-19 sell jewelry in Bangkok's Chinatown on Wednesday. Photo: AFP

Gold surged to a seven-year high on Tuesday to $1,731.25 an ounce, following global moves led by the US 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 precious metal at a time of economic hardship without recent precedent.  

Many Thais buy gold jewelry as an investment in times of plenty, to be sold when prices rise or belts tighten.

In Bangkok, where 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 Thai gold prices jumped more than 20 percent.

"I don't have any savings so I decided 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 bought 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 revenue has been strangled by the lockdown are being forced to sell their gold savings.

"Their businesses are in bad shape; better to sell gold and keep cash," he added.

"In over 60 years and I never seen people queue like this to sell their gold." 

Thailand's economy is forecast to contract by more than 5 percent this year after the virus shuttered borders - killing the cash cow tourist industry - leaving millions unemployed.


Newspaper headline: Cash-strapped Thais sell jewelry to eat


Posted in: ASIA-PACIFIC

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