Gold in Thailand: pure and sought after
Gold plays an important role in the life of the Thai people. Gold is given as a gift at various stages of life. At birth, gold objects are donated to the baby and gold is also an important part of the dowry (Sinsod).
Gold is deeply rooted in Thai culture and plays an important role in various stages of life of its inhabitants. At births it is customary to gift gold objects to the baby, symbolic of prosperity and prosperity. Furthermore, gold is a crucial part of the dowry, known as 'Sinsod', in marriages. This not only reflects the wealth and status of the families, but also serves as a form of financial security for the bridal couple.
Gold in the naming of Thailand
Thailand's historical connection with gold is so significant that it is reflected in the country's ancient name. 'Siam', the former name of Thailand, means 'gold' in Sanskrit. This rich association with gold is also recognized by other cultures; the Chinese used to call Thailand 'Jin Lin', meaning 'peninsula of gold', and the Indian people referred to it as Suvarnabhumi, or 'Land of Gold'. These designations emphasize the historical and cultural significance of gold in Thailand.
Gold in religion and finance
The value of gold in Thailand is not limited to jewelry and gifts. The metal also has deep religious significance; it is traditionally used to make Buddha statues and other religious objects, emphasizing the sacredness and respect for Buddhism. In addition, gold serves as an important financial instrument. Many Thais see buying gold as a way to ensure financial security, especially in uncertain economic times. This practice is a reflection not only of gold's enduring value, but also of a deep-seated trust in this precious metal as a stable investment.
Thai gold for export
Gold is still one of Thailand's most important export products. In 2004, total exports of gold jewelry exceeded 30 billion baht. At least 10% can be added to that figure through the smuggling and illegal sale of gold. Foreign tourists and Westerners also buy gold in Thailand to launder black money and evade taxes.
The main export countries for Thai gold are the US, the UK and Hong Kong. Most of the jewelry that is exported is 10, 14 and 18 carat.
There are more than 6.000 gold stores in Thailand. There are more than 60 gold wholesale companies in Bangkok alone.
Purity of Thai gold
Thai gold jewelry for the domestic market consists of 96,5% pure gold, which is just over 23 carats. The remaining 3,5% consists of silver and bronze. Sometimes 22k, 20k or 18k gold jewelry is also offered. A Thai Baht gold bar is sold in 'Baht weight' or 15,244 grams (15,16 grams for a Thai Baht gold ornament). That is just under half of a troy ounce, which weighs exactly 31,1034768 grams. Pure gold (24k) is too soft to make jewelry. It is therefore advisable to choose a lower carat for rings or thin jewelry.
The price of Thai gold is published daily by the Thai government. Every gold shop uses that price. Gold shops in Thailand publish the buying and selling prices of gold on the windows.
(Editorial credit: ferdyboy / Shutterstock.com)
Benefits of Thai gold jewelry
Thai gold jewelry has a number of advantages compared to Western gold:
- Sustainability: Many Westerners think 18K or 14K is the best purity for jewelry. It is believed that a higher carat makes the gold too soft. However, in practice certain types of gold jewellery, such as necklaces, can be excellently crafted in 23k gold. A higher carat also means more durability. Thai jewelry with a high gold content can be worn daily without the quality diminishing.
- Special color: Thai gold jewelry with a 23k purity gives a sublime sparkle and an intense yellow color. Jewelry with less gold is often light yellow or greenish yellow.
- Good selling price: Thai people often choose to invest part of their money in gold ornaments because they can be easily sold. Every Thai gold shop is willing to buy gold ornaments for a good price. Thai gold stores prefer to buy 23k gold jewelry. The purity of this is established. For jewelry with a lower purity (18k or 14k) the price offered will be a lot lower. It costs more to separate the gold from the other precious metals. In general, customers get the best price when they sell the gold to the stores where the gold was purchased.
- Good investment: Gold is considered stable in value and easy to trade in most Asian countries. The prices of gold on the world market have risen sharply in recent years. The purchase of gold or jewelery can therefore be a good investment.
- Low prices: Thai gold jewelry contains more pure gold, but is much cheaper compared to the price in the West. Normally, the prices of Thai gold jewelry do not exceed 5% of the international gold price. While the prices of western gold jewelry are about 40% above the gold price. The reason for this is that Thai jewelry has long been seen as inferior to Western jewelry. You pay the price difference of 35% for the design and craftsmanship of a Western goldsmith. However, more and more Thai artisans are able to create beautiful designs that are similar to the styles in the west. Given the lower labor costs of a Thai goldsmith, a Thai gold piece of jewelry can be purchased considerably cheaper.
About this blogger
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Known as Khun Peter (62), lives alternately in Apeldoorn and Pattaya. In a relationship with Kanchana for 14 years. Not yet retired, have my own company, something with insurance. Crazy about animals, especially dogs and music.
Enough hobbies, but unfortunately little time: writing for Thailandblog, fitness, health and nutrition, shooting sports, chatting with friends and some other oddities.
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It is almost only the Chinese who own gold shops and who also have a greater throughput and turnover rate. There are some price differences between the retailers
but is not spectacular and some retailers sell on a commission basis.
The advantage of the shopkeepers is that there is only about a maximum of 5% between the sale and purchase of the gold from the Thai.
When selling and purchasing here in the Netherlands, the difference is more than 50%. My girlfriend has a 1 bath necklace and 1 bath bracelet from me, she is wise with that and also 2 nice rings.
According to her, it is now also the case that by showing the gold, the Thai know that she is occupied
is having a good party.
I had my old wedding ring made to fit her. This European gold is in her eyes
fluff, because it has the same color and bouncing sound as the 2 thai bath coins
But much of the gold originally comes from Laos, there you have 100% pure gold, in Thailand it is processed again after which you then have a piece of gold left at 96%. If you really want pure but pure you should not be in Thailand but in Laos, just search and you will find out. There is still some gold in the ground in Laos. In Vientiane you have to be at the very top of the morning market to buy pure gold at a good price, it is always full of Thai people who come to order their stuff there, I also bought my wedding ring for my wife there, I should know because my wife is Thai and Lao and am quite well versed in Vientiane. Kam Pho Won or something like that would be a really good kick according to the locals. The Thai traders and other Thai buyers who have knowledge of it go there, namely Laos. Only this fact is not generally known and Thailand takes the credit a bit, but all in all you already have very good quality in Thailand at very favorable prices, but if you want that little bit more for a little less you have to go to Laos . Pure song! Ching, ching.
Dear siamese.
When you talk about gold you don't say pure but fine gold.
The content is never 100% but 99.9%.
It can also be alloyed with titanium at 99% with good hardness
is not often used due to the high cost of this alloy.
Why gold costs less in Thailand is due to the manufacturing costs and surcharges in the Netherlands from the wholesaler and jeweler
In many countries, the content is what may become gold
sold differently.
In eg England from 9 kr, the Netherlands 14 kr, France 18 kr.
Carat is an indication of the gold content in watts
in the jewelry is at fein that is 1000. (99.9%)
There is 14 gold in 585 kt and 18 in 750 kt.
In many countries one finds gold with a lower content, which in
the land as gold may be sold no gold.
Gold jewelry is certainly not a good investment
if the manufacturing costs in a country are expensive and the surcharges are high.
The color can be changed by alloying gold with other metals
also become white, red or yellow in many colors light and dark.
Gold as sold in Thailand will sooner
wear due to the high content of gold than, for example, a 14kr
jewelry.
The story and reactions are clearly from laymen,
well as most people talk about gold but not right.
Jack CNX is right about this, I have traded with gold jewelry and pure gold bars with the stamp 999.9 feingold, also called investment bars, if you buy a piece of jewelry buy one of 14 kroner or 18 kroner, these remain beautiful for a long time and hardly wear out, the stones (e.g. Brilliant) well and firmly in it. I also bought Thai gold jewelry for myself necklace bracelet and rings, the chain was 130 grams and has now become a lot longer, weighs 125 grams, the bracelet was 60 grams and is now 56 grams and has become 2 cm longer, it hangs on my hand, Thai gold is much too soft and stones do not hold. Then you still have 8kr in Germany. 333 is in the stamp, this is not recognized as gold in NL.
Dear Jack CNX, thanks for this explanation, couldn't put it better.
The reason the Chinese are so inclined to trade gold is simple from an economic point of view.
Thai gold is usually of grade 965 (96,5% FINE or pure gold).
Every Thai can, for example, bring in a 1 Baht (rounded to 15 grams) chain, in pledge. You pay monthly interest (10% per month is not uncommon). If you take it back after 6 months, you have paid 60% of the value as interest, and you can buy it back at 100% of the daily price at the daily price of your jewelry. This is crazy; you have then paid 160% of what you brought in.
Furthermore, Thai gold (+/-21 to 22 kt in practice) is so beautifully workable by the goldsmith because it is so pure. However, this jewelry can be easily removed from your neck or wrist. And unsuitable for using gemstones or brilliants, for example. At least if you want to wear them.
Furthermore, a beautiful gold Thai necklace is not for everyday wear; rather to show off, or in dark times, to bring into an equally dark workshop to cash in.
Sometimes we get questions from Thai, in our workshop in Antwerp, to place gemstones in their gold jewellery. Usually brilliant and then it must be VVS and G/H/I color. We can, but don't recommend it. Those stones loosen over time. By the way, we only set certificate stones in 18 kt. Not even in 14 kt. Say falang gold, 18 kt. It is different when one speaks of peridot, for example, such a stone of about 4 ct I gladly put in Thai gold. In 18kt it could burst with a tap… ;~) By the way, have you ever heard of the Navaratna, the 9 or 7 gemstone order of the King?
Davis doesn't quite understand the loan system of the Chinese Thai. When handing over a gold piece of jewelry, the customer receives a counter value in baht. The customer now pays a maximum of 3% interest payment per month based on the maximum legal interest payment of 36% per year. If the customer wants the gold back, she will pay back the same amount that was received. So there are only interest costs per month to be paid. However, the shops often give a few thousand baht less for the gold if it's worth it. If the interest is not paid, the shop then earns a few thousand baht per 1 baht of gold, because the customer remains in default and the shop is allowed to appropriate the jewelry.
It is nice to mention that the Thai realize that gold has been money for millennia and currency (Baht, Euro dollar) is an experiment in which the value of the currency eventually ends up at zero. 6 millennia long….
I read:Normally the prices of Thai jewelery do not exceed 5% of the international gold price. If only that were true!! You probably mean: 5% surcharge above the price of the international gold price. However ? In that 5%, the price of processing a piece of gold into the end product, the so-called “Bamnet” is also discounted.
The last time I bought gold here I calculated it back to the international prices in London and Hong Kong. And what surprised me a bit was that the total price of the jewelry was even just below the international market price.
Even if you added that the jewelry is 96.5%, and you actually had less gold, so 14.629 grams in a jewelry of 1 baht. But it all depends on fluctuations in the international price and USD/THB.
Before our marriage I had bought 2 (of course) wedding rings, I never wear mine, if, so to speak, 1 times a door handle, or something else hard, take the hand that has the ring on, that ring is square, I regularly had to have that thing made round again at the jeweler in the Netherlands, who, by the way, told me that the ring was almost pure (fine) gold and should cost about 3 to 5 times more than I paid for it here in the Netherlands.
But the "softness" of the material wears out insanely, I wanted to wear it with a chain around my neck, but the jeweler also advised against it, due to wear and tear, so it is now in a drawer, it doesn't matter, people will see that you are married.
Yours faithfully,
Lex K.
Thai also has many different words for 'gold' :
กนก kànòk in names
ทอง thong most commonly used word
(ทอง)คำ (thong) kham as in Chiang Kham
กาญจน์ กาญจนา kaanchàna as in Kanchanaburi
สุพรรณ sòephan as in Suphanburi
สุวรรณ sòewan as in airport Suwarnaphumi 'The Golden Land'
อุไร urai in names
I also have a golden friend: Kanchana