Gold traders cool to S'pore tax waiver
Thai gold traders said yesterday that the cancellation of taxes on gold and silver trading in Singapore would not affect the market here, as their business comes mainly from local and Indochinese investors.
“Singapore may have to take 10 years to develop its gold trading to become a trading hub like London,” one local trader said.
Gold and silver trading in Singapore is mainly by banks, so there is less flexibility than in Thailand, they said.
Jitti Tangsithpakdi, president of the Gold Traders Association, said any effect on the Thai market from the move by Singapore that took effect yesterday would only be in the short run. The gold traders in Thailand are almost all locals. Foreign traders – from Myanmar, Cambodia and Laos – account for only 10 per cent of total trading value.
The dropping of taxes will encourage India and Indonesia to trade more in Singapore as their close geographical neighbour. Normally, gold traders prefer Hong Kong.
“We have to keep a close eye on how Singapore develops its market,” he said.
Gold prices this quarter are forecast to fluctuate around US$1,800 per ounce.
However the price will rise if there are some political tensions here or in the world.
Pawan Nawawattanasub, vice president of YLG Bullion Inter-national, said that in talking with customers in Europe about Singa-pore’s tax waiver, the consensus was that the city-state would take about 10 years to become a regional trading hub as planned.
“Thai gold traders have more flexibility and can trade more easily as they are in the private sector while Singapore still has restrictions and major traders are financial institutions,” he said.
