Buying and selling gold in Thailand: as a piece of jewelry and as an investment

Table of contents

1. Where to buy and sell gold in Thailand

2. Gold price in Thailand

3. Thai measure of gold: 1 baht of gold

4. Buying gold in Thailand as an investment

5. Buying gold as jewelry

6. Why is gold in Thailand a different color and softer

7. Selling Thai gold abroad. Sale in Thailand of gold bought abroad

So

Where to buy and sell gold in Thailand

Gold in Thailand is sold in stores located both in malls and on the streets. These shops are easily recognizable by the abundance of red and yellow colors in the decoration.

The windows of these shops are always red, and they have an abundance of gold jewelry (rings, bracelets, chains and other jewelry), as well as small gold bars.

All gold sellers are subject to licensing in Thailand.

In these stores you can both buy and sell gold.

Gold in Thailand is bought and sold based on its value on the stock exchange. That is, gold can be sold at almost the same price that you bought it. And if the price of gold has risen on world markets, then you can sell your gold at a higher price. That is, gold can be used to save money, as well as to invest. If your goal is savings and investments, then there are nuances between the price of gold jewelry and gold plates – this will be discussed later.

Gold price in Thailand

Each store has a board with the rate of buying and selling gold – these boards are very similar to the rates of buying and selling currencies in banks.

You can refer to these prices if you buy or sell gold plates.

If you buy a piece of jewelry, it will cost about 1000-2000 baht more than you would expect when buying gold bullion. When selling gold jewelry, it is unlikely that you will be able to return this difference.

But when selling a gold plate, you can focus on the official rate. The spread (the difference between the buying and selling price) for gold differs quite a bit, by about 100 baht. This is provided that the gold rate is the same as at the time of purchase – if the cost of gold changes, then your gold plate will cost more or less.

Please note that when buying and selling gold, taxes are not paid, including VAT.

Thai measure of gold: 1 baht of gold

In Thailand, gold is measured in 1 baht.

Accordingly, the rates of sale and purchase of gold shown on the scoreboard are indicated for 1 baht.

Gold jewelry and gold plates are multiples of this measure. For example, a piece of jewelry can be ¼ baht, ½ baht, 1 baht, 2 baht, and so on.

For example, in this photo there is a ¼ baht gold ring with laser engraving.

1 Thai baht of gold has a weight of 15.2441 grams, and 1 troy ounce of gold has a weight of 31.10348 grams. Thus, 2 Thai baht of gold is close to 1 troy ounce of gold, but is not completely equal.

Buying gold in Thailand as an investment

If you are buying gold as an investment or as insurance against various economic disasters, you will find gold bars in stores next to gold jewelry.

They come in different denominations, such as 1 baht, 1/2 baht, 1/4 baht, and even smaller grams. For bars denominated in baht, there are 2 types. One type is very plain gold, just a piece of metal, and is quoted in the same way as the prices mentioned above. If you want a more beautiful piece of gold, with a logo and an animal on the back, you will have to pay a little more, usually 150 baht. When you sell your gold bar to a store, of course they won't refund you that amount. So the difference between the buying and selling price of this type of “beautiful” gold is actually 250 baht (assuming the buying and selling of the item happen at the same time).

Buying gold as jewelry

The jewelry is beautiful. If you want to gift or wear them, they are the obvious choice.

But jewelry is less suitable for investment. Jewelry can be sold in gold stores. Moreover, upon purchase, you are given a “Warranty Card”, which will make it easier for you to sell or exchange for another piece of jewelry.

But the cost of jewelry (rings, chains, bracelets) includes an extra charge – both for the work to create the jewelry and the profit of the store.

For example, the gold purchase rate is 29550 for 1 baht. The ring in the photo above, weighing ¼ baht, costs 8850. That is the difference with the official rate of 8850-7387.5=1462.5.

If you want to sell a piece of jewelry, you can always get the price of the gold it's made from. Using the example above, this ring can be sold for a minimum of 7387.5 baht. But if the piece of jewelry has retained its presentation and there is a chance to resell it, then the price may be slightly higher.

Why is gold in Thailand a different color and softer

Generally, the gold you buy in Thailand is of better purity than the gold you find in the west.

In the west, gold is usually mixed with other metals to make it more durable, which also changes its color a bit. In the west, men's engagement rings tend to be 9k gold, while women's are 18 carats. Also, a lot of gold is made with a purity of 14 and 21 carats.

In Thailand, gold is usually close to 24 carats, i.e. close to pure gold. Gold is a fairly soft metal, so Thai gold is softer and yellower.

Selling Thai gold abroad. Sale in Thailand of gold bought abroad

Trying to take Thai gold out of the country and sell it in another country can be a daunting task due to the unusual weight and difference in purity of the gold. Our advice: if you bought in Thailand, then sell in Thailand.

If you buy gold from the west and want to sell it, it's only worth a fraction of what you paid for it (markup is high and resale is low). That is, even if you manage to sell gold from a Western country in Thailand, you will receive only a part of what you paid.

That is, the best option is to sell gold in the same country where it was bought.

So

To invest in gold, buy plain gold bars.

Jewelry will lose value when sold, but retain most of it.

It is better to sell gold in the same country where you bought it.