Gold market : another unprecedented event… shops close

Another “unprecedented” event has occurred in Thailand (for the previous one, read here), this time on the gold market.

Gold shops in Bangok’s Yaowarat district – famed for top-quality gold products – discontinued business during the Chinese New Year for the first time in history, planning to reopen tomorrow.

Jitti Tangsitpakdi, president of the Gold Traders’ Association of Thailand, was adamant that the closure was due to price volatility rather than the high volume of resales from consumers cashing in on the higher prices.

Before the Chinese New Year holiday break began on Sunday, gold shops in Yaowarat had sold a total of close to two tonnes of gold, worth around Bt6.8 billion.

Yet, on Saturday – the last day of business before the break – local gold prices jumped Bt450 in a single day, to Bt14,600 per 15 grams.

“World gold prices have been jumping up and down several times in a day,” Jitti said. “Shops have had to change their prices many times, so we decided to stop selling gold on Monday and Tuesday.” He added that gold markets in other Asian countries had also closed during the holiday period. (Nation)

This is untrue. Nothing less. Here is the proof.

goldweird2

Friday, they sold a lot of gold (because Chinese New Year). But you see on the chart that the big price jump occured during New York trading hours friday (when Thailand was already sleeping)…

Therefore, the price of gold in Thailand jumped… saturday. And saturday… it can’t move anymore, because international markets (New York and London) are closed.

(look here the Gold Traders Association of Thailand)

Therefore, during the week end, it’s the price set friday that should apply… ๐Ÿ˜‰ Should.

Panick. Some people who bought friday… wanted to sell saturday, to pocket a quick profit ! And this is what motivated the shops to close. They were afraid to endure a cisor cut… by buying back sunday and monday at high prices… before a big drop of prices the following days.

Or… they didn’t want to sell at 14 600 THB sunday and monday… because they expected the price to shot up… again… now. By waiting 1 or 2 days, the shops could increase their profits…

And apparently they could be right (monday morning in New York, gold continues to go up !)…

In other words, down or up : they have cheated with market rules. ๐Ÿ˜‰

They did the same than stock market operators who decide, in case of emergency (sharp fall), to close the market or suspend a stock for instance.

Anyway… “unprecedented “, as I wrote many times, is the main key word nowadays.

You want to understand the scale of the Big Global Crisis ? Learn how to say the word “unprecedented” in every language. ๐Ÿ˜‰

Nothing is normal anymore. Black swans are multiplying.

3 Responses to “Gold market : another unprecedented event… shops close”


  1. 1 antipadshist 27 January 2009 at 11:26 am

    TC

    I think the actual reason is coz they KNOW that prices are gonna rocket-shoot upwards !

    and current charts show that – yesterday it has shot up to $915 per ounce !

    because

    “the market is starting to differentiate between ‘physical gold’ and ‘paper gold’ like certificates, ETFs and other proxies”
    http://goldmoney.com/en/commentary.php

    Gold price thrusts through resistance.

    “Breakout rally supported by strong buying of ETFs”
    http://www.stockhouse.com/Columnists/2009/Jan-1/26/Gold-price-thrusts-through-resistance–Got-Gold-Re

    interesting predictions which somehow I feel like quite realistic :

    “The money supply increases in 2009 and 2010 could reach 50%! we are not going to have a Depression but a huge paper money induced boom. It will be artificial and inflationary. It is all in the works right now.
    The financial system will be temporarily โ€œsavedโ€ by paper money but working people and savers will be eventually crushed by this currency depreciation. Capitalism and free enterprise will get another bad rap when inflation rips through the system. Honest capitalism and classic free enterprise does not include paper moneyโ€ฆ.the cause of all modern day economic problems.

    … authorities are using this crisis to bail out the system with paper money and because of that, the economy will once again go into a so-called boom that will be very inflationary….

    What Happens Next … [the main part ! ]

    – Inflation comes back with a vengeance.
    – The dollar will go down but so will other currencies as many world governments print their way out of their economic woes as well.
    – Gold will go to new highs.
    – Housing and real estate will recover but higher interest rates will slow this sector down considerably in the future.
    – The gold and silver mining stocks will become the best performing sector on Wall Street for many years.
    – The price of oil will go up due to inflation and global production declines of 5-8% per year from most of the largest oil fields in the world.
    – The U.S. โ€œrecoveryโ€ will help the world recover and almost all countries will have another artificial economic expansion from all the paper money they have printed as well. ”

    http://news.goldseek.com/KennethGerbino/1233040620.php

    that’s exactly what most of countries are doing – print more paper money, as Fed does. and the talks of simultenous devaluation of currencies is common nowadays. although in Asia it is “competative devaluation” ! ๐Ÿ™‚

  2. 2 antipadshist 27 January 2009 at 11:48 am

    GOLD PRICE predictions 1000, 1150 before june, 1250, possibly 2000 by year end
    Central Banks buying gold

  3. 3 antipadshist 28 January 2009 at 1:43 pm

    Confidence evaporates, currency row brews at Davos
    http://www.reuters.com/article/topNews/idUSTRE50M4BE20090128

    “Confidence among the world’s top company chiefs meeting in Davos has tumbled to a new low and a brewing currency row between the United States and China cast doubt on the political will to act in concert.
    Chinese Premier Wen Jiabao and Russian Prime Minister Vladimir Putin will both address business and political leaders
    Ahead of Wen’s speech, a row intensified over Beijing’s exchange rate policy after new U.S. Treasury Secretary Timothy Geithner branded China a currency manipulator last week, using a term the previous administration deliberately avoided for years.

    A Chinese diplomat said on Wednesday Washington had enough evidence to know China does not manipulate its exchange rate.
    Putin will meet privately with Wen in Davos to share ideas on how the two powers can cooperate on addressing economic problems. No top officials from the new Obama administration are here.

    Hopes for a short “V”-shaped recession appear to have evaporated with most business leaders expecting no more than a slow and gradual recovery over the next three years… Delegates in Davos were united in the view that an economic upturn is some way off. ”

    in interview to Bloomberg Putin said in Davos he is gonna talk about alternative reserve currency(ies), as possible Yuan. perhaps that’s one of the matters he is gonna discuss with Wen ?

    “Putin will present to world business leaders in Davos on Wednesday Russia’s vision of a new economic order…
    Putin is scheduled to deliver the opening speech at 1845 GMT (1:45 p.m. EST) on Wednesday, several hours after Chinese Premier Wen Jiabao will discuss steps his country is taking to tackle its economic downturn.”

    The speech is likely to be closely watched for clues about Russian policy ahead of a meeting of the leaders of G20 countries in April
    http://www.reuters.com/article/GCA-Davos2009/idUSTRE50R02120090128

    Davos 2009
    http://www.reuters.com/davos

    it is interesting to see the outcome of this meeting, which is perhaps the 1st big one in 2009 in predicted series of high level summits in attempt to tackle the global crisis:

    Jan – Davos (WEF)
    Feb – ASEAN
    April – G20
    April (or March ? ) – ASEAN+3

    Obama it seems totally ignores this Davos summit.
    while Abhisit aspires to debute there as a new starlet of SEA ๐Ÿ™‚ (although I doubt it very much he will get desired attention with China and Russia running the show there; and definetely not with the recent Rohingya mess ! )

    I guess that further negotiations about simultenous devaluation of currencies is gonna take place.
    although may be that’s precisely what Putin what be talking against – rather about creating some alternative world currency.

    in any case, the US dollar is f***ed and I am curious to see how this Davos meeting is gonna adress this issue.
    (well, GBP is screwed even more than dollar – but it is not as much used by countries as a reserve currency as dollar )

    should we watch out for the beginniong of currencies devaulation? perhaps it is good idea start buying Yuan ? ๐Ÿ˜‰


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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