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The streets of Bangkok's Chinatown have been busy in recent days - a frenzy of activity, traffic jams on the street. It's not because lockdown is lifted, but because gold prices have risen to a seven-year high and Thais are cashing in.
Ignoring social distancing health warnings, tightly-packed queues stretching hundreds of meters in Yaowarat Road, home to major goldsmiths, waiting for hours to trade in their jewelry, ornaments, gold bars for cash. Few are there to simply make a profit while others, clench onto their last valuable possession, knowing that after this, there is no more safety net.
Long lines formed outside gold shops this week as Thais rush to sell gold after rising global prices coupled with a weakening baht pushed local prices up by more than 20 percent this year to all time highs. /Dusita Saokaew/CGTN
Thitirat Boontaweesukra's decision to join the line today was not an easy one. In her bag she holds tightly is gold jewelry that has been in her family for decades. She wanted to pass it onto her daughter and grand children, but with no money left, she knows that getting food on table is more important.
"I came to sell my gold today because right now I have nothing - zero. This all I have left," Thitirat said. "It's not because gold prices is high, but because I have no money to survive."
For Thais, gold is an important part of culture both symbolically and financially. It represents a sign of saved up money, not scheduled for short-term purchases. Many Thais believe in gold more than their own currency. A form of capital preservation that can be sold when the going gets tough.
Many Thais hold gold as savings and investments. Some are there to make a profit from the high price, while others were selling their gold to get cash to support their families, as many have lost their jobs. /Dusita Saokaew/CGTN
And tough doesn't begin to explain the current climate. A pandemic, spreading it tentacles into every crevice of society, with the threat of the world's deepest recession in a century. The economic shock has been fast. Businesses closing, millions out of work.
Jitti Tangsithpakdi, chairman of the Gold Traders Association, said the sales volume on Yaowarat road in the past few days could be in the billions. "I have never experienced anything like this," he said, adding "In my 60 years of being in this business, I have never seen this many people line up to sell gold."
However, with this rush to sell gold, the one-sided selling in the domestic market and difficulties in gold exports, has resulted in many gold shops shutting down due to liquidity problems.
"When people come in all at once to sell their gold, it causes problems," he said. "Every country is facing a crisis from this virus. Border closures, airlines are not flying, businesses closed, it makes it difficult to export our gold to other countries."
Analysts project new record high prices of gold in the near future. Without an end in sight
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financial markets have been under much pressure, volatility and uncertainty. There's a strong sense - risks are high and that is always when gold glitters the most.
