Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal Services & Resources 

Up to date legal information pertaining to Thai, American, & International Law.

Contact us: +66 2-266 3698

Thai Gold and the US Dollar

Transcript of the above video:

As the title of this video suggests, we are discussing Thai gold and we are discussing this in the context of the US Dollar

For those who are unaware, I have made other videos on this channel. Occasionally, we make videos regarding gold; specifically Thai Gold. Thai Gold is kind of a different animal from international gold. For those who have ever been to Thailand, there are many Thai Gold shops around Thailand. It kind of is a different system if you will with respect to Thai Gold compared to Western Gold. Thai Gold has a different weight measure, the Baht weight. We made another video on this channel where we discuss Baht weight in detail. It has a different fine-ness, a different weight. You can go to that video by going to our search function in this channel and checking out Thai Baht weight. 

The other thing to keep in mind with respect to Thai Gold has been that in the past it was always exclusively fungible to Thai Baht so you could use Thai Baht currency to buy Thai Gold, and then if it was a member of the Thai Gold Traders Association whatever operation you were using, they oftentimes could then convert it back into Dollars. There have been some recent developments with respect to this that I think are noteworthy. A recent article from the Bangkok Post, that is, article is titled: Gold Trade Gets Redefined. Quoting directly: "After years of regulations confining Gold Trade in Thailand to the Baht, the US Dollar will now be used." and this was published August 13th, 2020, “2 weeks ago the Bank of Thailand announced a policy to allow trading gold products in US dollars. Market participants say the Central Bank will consider Dollar denominated trade for foreign related capital market products in the near future." 

So that is really, really interesting. That certainly is a major development with respect to the gold market here in Thailand; the fact that those who wish to buy Thai gold may now be able to do so in US dollars. The exact ramifications of this remain to be seen. We will keep you updated on this situation as circumstances progress.