Big gold traders seek meeting with BOT chief on regulations
SEVEN BIG GOLD traders have asked for a meeting with the Bank of Thailand governor to seek clarification on gold-trade regulations and the authority's supervisory role.
“Gold traders feel uncomfortable with what happened and want to have a mutual understanding with the central bank,” an anonymous source from the trade said yesterday. The regulations for gold traders are not clear yet, he said.
Through the Stock Exchange of Thailand and the Securities and Exchange Commission, the gold traders expect to talk with BOT Governor Prasarn Trairatvorakul soon, he said. Online trading is a convenient way to buy and sell gold without any profit, as gold trading carries a margin of less than 5 per cent. Big brokerages have online systems that can be examined, he added.
Pawan Nawawattanasub, chief executive of YLG Bullion International, said that in the past seven months, the company had sold gold bars worth Bt400 billion. Last year, its gold sales reached Bt800 billion.
YLG’s online gold trading accounts for less than 20 per cent of total gold trade but has high growth potential, given its convenience and flexibility.
The Gold Research Centre’s director said every gold trader had an online trading service and there was no specific regulator for it.
Usually, gold buyers are required to receive gold within two days after purchase. Opening an online trading account requires collateral. The online premium is about Bt35-Bt70 per baht weight.
A source from the Gold Traders Association said it had about 700 members, of which about 362 were in Bangkok.
