You are here

Thai traders say spot gold exchange requires more study

Section: Daily Dispatches

By Nuntawun Polkuamdee
Bangkok Post
Bangkok, Thailand
Tuesday, August 19, 2014

Despite a mutual agreement in principle between the market regulator and gold traders, a gold exchange will not start operating this year, gold traders say after a discussion yesterday.

The seven dealers -- Globlex Holding Management, Classic Gold Futures, GT Gold Bullion, YLG Group, Ausiris, MTS Gold, and Hua Seng Heng Commoditas -- control 90 percent of the country's gold trading market in terms of both physical gold and gold derivatives markets.

Gold Traders Association chairman Jitti Tangsithpakdi said even though each GTA member expected gold trading to decline without a local spot gold market, details about trading, the management structure of the exchange and regulation still required further study.

... Dispatch continues below ...


Free Storage with BullionStar in Singapore Until 2016

BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore.

BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter.

For more information, please visit Bullion Star here:

"Building a spot exchange is quite sensitive, so we need to be careful and seriously discuss the matter with all traders," he said.

Mr Jitti said it would take more than six months for an exchange to be ready for operation, but it is essential if Thailand wants to maintain its leading trading position in the region.

Thailand has had the world's fifth-largest gold futures board and been ASEAN's largest gold importer for two years now, but Singapore last year introduced an unofficial gold exchange that is gaining ground.

Early next month, the SET and the GTA will visit the Shanghai Gold Exchange, a non-profit and self-regulating exchange in China, following a recent visit by the gold traders to Hong Kong's century-old bullion exchange.

"The Hong Kong gold exchange is the largest bullion trading board in Asia-Pacific at 500 times Thailand's trading volume, so we can learn from them," said Mr Jitti.

SET president Kesara Manchusree said her bourse would design the initial model for the new exchange by adapting the operation and management structure of the advanced Chinese markets, but some details would be adjusted to fit Thailand's more liberal environment.

"We expect to see a clear structure for the gold exchange this year," she said, adding that the traders still had some conditions requiring approval from all stakeholders.

Mrs Kesara said the gold exchange was part of plans to develop the commodities and derivatives markets in terms of product variety and trading values.

The idea to set up a spot gold exchange in Thailand was initiated last year by the Bank of Thailand to regulate physical gold trading after it found discrepancies between spot market trades and the US-dollar value of transactions.

* * *

Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: