The Gold Traders Association has reported a 10-20% decrease in gold sales during this year’s New Year holiday season, with expectations of a new high exceeding 35,000 baht next year.
The atmosphere in Yaowarat’s gold shops showed people buying gold as gifts for the New Year 2024, with many shops acknowledging a decrease in sales compared to the previous year due to high prices.
Both Thai nationals and foreigners were seen buying gold bars and ornaments, notably gold good luck charms.
The association revealed that gold prices have surged significantly this year, starting at 29,950 baht per baht-weight of gold ornaments and reaching a historic high of 34,350 baht. Prices at the end of the year still hovered above 33,000 baht. The fluctuation of almost 4,000 baht in prices was identified as a key factor affecting gold purchase decisions for awards or gifts this New Year.
Companies have shifted from gifting gold ornaments as employee rewards to gold bars, which are cheaper.
During the period when gold prices hit a new high, there was a rush to sell gold. Many people intended to buy back when prices dropped, but prices did not decrease as expected, leading to a slowdown in purchases. However, some are starting to buy gold again, considering even a small profit or break-even as acceptable under current conditions.
Nevertheless, gold prices are expected to gradually increase next year, not in wide swings as seen this year. (NNT)
