Nakhon Ratchasima: The price of gold has reached unprecedented highs, prompting a surge of residents in Korat to sell their gold holdings. This rush comes as a blow to small gold shops in the region, with 6-7 already forced to close their doors.
According to Thai News Agency, gold shops in the Nakhon Ratchasima Municipality have been overwhelmed with sellers eager to cash in on the soaring gold prices. The price hit a record high of 47,350 baht per baht, experiencing 12 adjustments by noon, settling at 46,147 baht per baht for gold ornaments and 47,000 baht per baht for gold bars.
With the influx of gold sellers, local authorities have had to step up security at gold shops to prevent potential thefts, given the high value of gold during this period. The unexpected price increase has left many sellers reflecting on past sales when prices were significantly lower.
Mr. Suthep Nattakankanok, advisor to the Nakhon Ratchasima Gold Traders Association, noted a decline in purchasing power in the area due to the high prices. Only middle to upper-class buyers are purchasing, primarily opting for gold bars as a form of investment rather than jewelry due to safety concerns. The current purchasing activity stands at just 30% of its usual volume.
The economic strain is palpable among small gold retailers, who are struggling to maintain operations without sufficient reserve funds to purchase gold. The past year saw the closure of several small gold shops, and projections suggest at least 10 more could close in 2025 if the trend continues.