Unusual demand witnessed in some provinces
Play
Savers in some provinces flock to gold shops, encouraged to buy up the metal on expectation that prices would soon recover.
At other provinces, buyers are still in the wait-and-see mode.
Local gold prices have fallen to the 32-month low level, losing about 18 per cent from end-2012. After the Bt2,400 cut per baht weight yesterday, Gold Traders Association as of 11.33am lowered gold prices by another Bt300 today.
About 20 gold shops in Mae Sot, Tak province, close their doors to business, pending for the stabilisation in gold prices.
In Buriram and Phitsanulok, purchases were concentrated in gold ornament, as many savers have stocked up gold bars in the past months.
Prahatchai Vongvichitsuk, the owner of "Golden Dragon" gold shop in Buriram, said that most of clients bought the medal for long-term saving. Volatility drives away speculators, he said.
He noted that gold shops have lost hugely from the sharp price drop. Buying gold at the cost of Bt22,000-Bt24,000 per baht weight, they are now selling them at Bt19,000.
"Bangkok" gold shop in Ubon Ratchathani also welcomed a large number of buyers. Few clients visited the gold shop for reselling or pledging.
Somchai Chongnitayakan, the owner of "Kang Kahin" gold shop in Ranong, did not witness a change in traffic. But he expected more traffic if gold prices keep falling.
Likewise, activity at gold shops in Hat Yai remains normal. A gold shop owner said if gold prices remain at this level or fall further, more traffic is expected. Buyers are in the wait-and-see mode, they said.
