Gold demand rising in Asia | Bangkok Post: learning

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Gold demand rising in Asia

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As big investors sell (expecting fall in gold price) smaller investors step in & buy with renewed interest in gold. 

Gold bars or bullion bought by investors.


Gold buyer doubles imports


Bloomberg News

YLG Bullion International Co, Thailand's biggest domestic gold importer, expects to more than double purchases this year after the bear market in prices spurred a surge in demand for physical metal.

The company may import as much as 200 metric tonnes in 2013, from 92 tonnes last year, Chief Executive Officer Pawan Nawawattanasub said in an interview on Monday. First-half shipments advanced to 112 tonnes, accounting for 60% of the country's total, she said. A tonne is valued at US$42.6 million.

Gold tumbled 21% this year, heading for the first annual retreat since 2000, as some investors lost faith in the metal as a store of wealth. With prices now 32% below the record reached in September 2011, the rout is boosting demand for bullion bars and coins, global sales of which surged 78% to an all-time high in the second quarter, according to the London-based World Gold Council.

"Cheaper prices are attracting customers to buy bullion bars as they see it as money better spent than on something like a Hermes bag," said Pawan, whose Bangkok-based company supplies retailers and investors in Southeast Asia's second-biggest economy. "Demand in Thailand can continue to grow, partly because collecting gold is in our culture."

Gold advanced as much as sevenfold since 2000, reaching a peak of $1,921.15 an ounce in a 12-year winning streak that was the longest in at least nine decades. The metal traded at $1,323.49 on Wednesday in London, having entered a bear market in April. Goldman Sachs Group Inc, Societe Generale SA and Credit Suisse Group AG are among those anticipating further declines.

Asian Consumer

Demand in Thailand rose 58% to 26.6 tonnes in the second quarter from a year earlier, World Gold Council data show. The nation was the third-largest Asian user after India and China in 2012 and ranked seventh globally. Individual investors account for about half of gold purchases, said Pawan, who has worked in the gold and jewelry business for two decades.

"There has been a complete change of customer profile,” said the 54-year-old mother of two, speaking in Thai from her office in Bangkok's Sathorn business district, which she shares with her husband, daughter and son. "Huge volumes from retail investors are helping to offset a retreat from big investors."

The company's sales rose to 836 billion baht ($26.6 billion) last year, from 2.6 billion baht in 2004, the first full year of operations for the bullion-trading firm. The group's other businesses include a futures brokerage run by Pawan's daughter, and a Singapore trading unit overseen by her son. Her husband is president of YLG Bullion.

Bullion Trading

YLG Bullion started its first overseas office in Singapore this year, as the company seeks to expand its bullion trading to other Southeast Asian countries including Cambodia, Vietnam, Laos and Indonesia, Pawan said. YLG Bullion plans to sell shares in Thailand and list on the local exchange within three years. Her family may reduce its stake to 75%, from almost 100%, she said. Non-family managers will join YLG Bullion to ensure continuity even if future generations choose not to join the company, she said.

Strengthening demand for gold in Thailand mirrors the trend across Asia. Sales of jewelry, coins and bars will advance to as much as 1,000 tons in India and China this year, the World Gold Council estimates. That would exceed China's record of 778.6 tonnes set in 2011 and approach India's all-time high of 1,006.5 tonnes in 2010.

Australia & New Zealand Banking Group Ltd (ANZ), UBS AG and Deutsche Bank AG opened bullion vaults in Singapore this year as investors accumulated more metal. U.K. bullion exports rose eightfold in the first half, a sign of the flow of metal from west to east, according to Macquarie Group Ltd.

Perth Mint

YLG Bullion sells gold bars sourced from firms including the Perth Mint in Australia and London-based Johnson Matthey Plc (JMAT), Pawan said. Thailand may import 330 tonnes and export 100 tonnes this year, she said. That compares with purchases of 329 tons and sales of 330 tonnes in 2012, government data show.

The Brink's (BCO) Co, based in Richmond, Virginia, and London-based G4S Plc (GFS) were Thailand's biggest gold importers by value in the first seven months, commerce ministry data show. Brinks's imports precious metals for customers including trading companies, banks and gold shops, according to the company.

Thailand's $365.6 billion economy expanded in 13 of the past 14 years, boosting incomes and demand for gold. The number of high net worth individuals in the country, or people with $1 million or more to invest, grew at more than 12% annually from 2009 through 2011 to 65,000, according to data from Cap Gemini SA (CAP) and the Royal Bank of Canada.

"The gold market is rapidly spreading beyond Bangkok to the provinces," said Sallyann Whittingham, the global services manager for Thailand and Laos at Brink's, which has operated in the Thai capital since 1986. "Thailand is also ideally geographically situated to feed into the Southeast Asian countries."

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account for: to be a particular amount or part of something -

accounting for: being -

accumulate: to get more and more of something over a period of time - เก็บสะสม, สะสม, สั่งสมมานาน

advance: increase, rise, for example: the baht advanced -

annual: happening once a year - ประจำปี

anticipate: to expect something - คาดหมาย,มุ่งหวัง

attract: to cause someone to be interested in something - ดึงดูดความสนใจ

bar: a long straight piece of metal or wood - ท่อน

based: where the main work of an organisation, business, etc. is done or controlled - ซึ่งเป็นศูนย์กลาง

boost: to increase - เพิ่ม

brokerage: brokerage firm, a company that helps people buy and sell things - นายหน้า; นายหน้าซื้อขายหลักทรัพย์หรือบริษัทนายหน้า การประกอบธุรกิจเป็นนายหน้าหรือตัวแทนเพื่อการซื้อ ขาย หรือแลกเปลี่ยนหลักทรัพย์ให้แก่บุคคลอื่นเป็นทางค้าปกติ โดยได้รับค่านายหน้า ค่าธรรมเนียม หรือค่าตอบแทนอื่นเป็นการตอบแทน ดังนั้น หากบุคคลใดแสดงตนต่อประชาชนเป็นการทั่วไปว่า ตนประกอบธุรกิจโดยพร้อมที่จะให้บริการเป็นตัวแทนหรือนายหน้าเพื่อดำเนินการซื้อ ขาย หรือแลกเปลี่ยนหลักทรัพย์เพื่อบุคคลอื่นหรือลูกค้า จึงถือเป็นการประกอบธุรกิจประเภทนายหน้าซื้อขายหลักทรัพย์ [ตลาดทุน]

bullion: gold or silver in the form of metal bars - ทองแท่ง, เงินแท่ง, แท่งเงินหรือทองจำนวนมาก

chief executive officer (CEO): the person with the highest rank in a company or an organisation - ผู้บริหารสูงสุด, ซีอีโอ (ประธานบริหาร)

coin: a flat round piece of metal used as money in a country - เหรียญ

collect: to gather together a group/set/amount of things, often of the same sort - สะสม, เก็บรวบรวม

collector: a person who collects things, either as a hobby or as a job - นักสะสม

complete: to finish something; to bring some project to an end after having done everything successfully - ทำเสร็จ, ทำให้สมบูรณ์

consumer: someone who buys and uses goods and services - ผู้บริโภค

continuity: the fact of not stopping or not changing - ความต่อเนื่องกัน

council: a group of people chosen to give advice, make rules, do research, provide money - สภา, คณะกรรมการ

culture: the customs and beliefs, art, way of life and social organization of a particular country or group - วัฒนธรรม

data: facts or information, especially when examined and used to find out things or to make decisions - ข้อมูล, ตัวเลข, สถิติ

decade: a period of ten years - ทศวรรษ, ระยะเวลา 10 ปี

demand: the need and desire of people to buy goods - อุปสงค์

domestic: inside the country being talked about - ภายในประเทศ

double: to become twice as big, twice as much or twice as many - เพิ่มเป็นสองเท่า

ensure: to make certain that something happens or is done - ให้การยืนยัน, รับรอง, ให้ความมั่นใจ

exceed: to be more than something; to go beyond a limit - เกินกว่าที่กำหนด

expand: to make or become larger - ขยาย เพิ่ม

feed into: flow into, go into -

firm: a business or company - บริษัท

first-half: first half of the year; the first six months of the year -

flow: supply of something that continues without stopping - การไหล

fold: by this many times -

future: a contract to buy or sell an amount of something at some date in the future for a certain price (for a commodity such as rice or oil) - สัญญาซื้อขายล่วงหน้า

generation: a group of people in society who are born and live around the same time - รุ่น (คนรุ่นต่างๆ)

geographically: related to location of something on the map -

global: throughout the world - ทั่วโลก

globally: throughout the world - ทั่วโลก

heading for: moving towards; moving the direction of - มุ่งหน้าไปยัง

huge: very large - ใหญ่โต

ideally: in the best possible way — - ดีเลิศ, ดีที่สุด, ในอุดมคติ

import: to buy or bring in products from another country - นำเข้า

importer: a person, company, or country that brings goods into their country in order to sell them - ผู้นำเข้า

income: money that someone gets from working or from investing money - รายได้

individual: a person considered separately rather than as part of a group - บุคคล

individuals: persons - บุคคล

international: connected with or involving two or more countries - นานาชาติ, สากล, ระหว่างประเทศ

interview: a meeting (often a public one) at which a journalist asks somebody questions in order to find out their opinions, experiences, etc. - การสัมภาษณ์

investor: a person or organization that invests money, i.e., uses money with the aim of making a profit from it, for example by buying property or buying shares in a company - นักลงทุน

local: in this country (Thailand) -

lose faith: to no longer believe in or trust someone or something - ไม่ไว้วางใจใน, ขาดศรัทธาต่อ

metal: a type of solid mineral substance that is usually hard and shiny and that heat and electricity can travel through, for example tin, iron and gold - โลหะ

mint: a place where money is made - โรงกษาปณ์, โรงผลิตเหรียญกษาปณ์

mirror: to match or express the qualities, features, or feelings of someone or something - สะท้อน

nation: a country considered as a group of people with the same language, culture and history, who live in a particular area under one government; all the people in a country - ประเทศ, คนในประเทศ

net worth: the value of all your property, possessions, and money after you remove what you owe - มูลค่าของทรัพย์สินทั้งหมดหลังจากลบออกหนี้สิน

offset: to balance the effect of something, with the result that there is no advantage or disadvantage - ชดเชย

operations: the activity or work done in an area of business or industry - ปฎิบัติการ

overseas: in another country - ต่างประเทศ

oversee: to watch or organise a job or an activity to make certain that it is being done correctly - คุมงาน,ควบคุม

peak: to reach the highest amount or level, before becoming lower - ขึ้นจนถึงจุดสุดยอด

physical: connected with a person's body - เกี่ยวกับร่างกาย

physical object: a thing that can be seen and touched, but is not alive - วัตถุ, สิ่งของ

precious: of great value because of being rare, expensive or important - มีค่า,ล้ำค่า

profile: a description of somebody/something that gives useful information - ประวัติโดยย่อ

province: on of many divisions of the government of a country into smaller parts - จังหวัด

purchase: something that has been bought - ของที่ซื้อมา

rank: to put someone or something into a position according to their success, importance, size etc - จัดลำดับ

rapidly: happening quickly - อย่างรวดเร็ว

record: the best or most ever achieved - สถิติ

reduce: to make something smaller or less in amount, size, importance etc - ลดลง

retail: to sell directly to the public for their own use - ขายปลีก

retail investor: investments made by individuals themselves, rather than by companies or organizations -

retailer: a person or company that sells goods directly to the public for their own use - ผู้ขายปลีก

retreat: to move back or away - ถอยกลับ

rout: a complete defeat of an opponent in a battle, competition, or election - การทำให้พ่ายแพ้ราบคาบ, การทำให้พ่ายแพ้กระเซอะกระเซิง

share: any of the units of equal value into which a company is divided and sold to raise money. People who own shares receive part of the company's profits - หุ้น

share: to have or use something at the same time as someone else - ใช้ร่วมกัน

shipment: a load of goods that are sent from one place to another - ปริมาณสินค้าที่ขนส่งในครั้งหนึ่ง ๆ

sign: an event, an action, a fact, etc. that shows that something exists, is happening or may happen in the future - สัญญาณ

situated: located - ระบุที่อยู่ ที่ตั้ง

source: to get something from a particular place - ได้จาก

spread: to (cause to) cover, reach or have an effect on a wider or increasing area or number of people - แพร่กระจาย, แพร่กระจายไปทั่ว

spur: to cause something to happen - ก่อให้เกิด 

stake: a share or a financial involvement in something such as a business - ส่วนได้เสีย

stock exchange: a place where shares in companies are bought and sold; all of the business activity involved in doing this - ตลาดหลักทรัพย์

Stock Exchange of Thailand: the main institution in Thailand where shares in companies are bought and sold - ตลาดหลักทรัพย์แห่งประเทศไทย

store: to put and keep things in a special place for use in the future - เก็บ

streak: a series of successes or failures, especially in a sport or in gambling; a run - การต่อเนื่อง, ช่วงชัยชนะหรือความสูญเสีย

supply: to provide somebody/something with something that they need or want, especially in large quantities - จัดหาให้, จัดส่งให้

surge: a sudden increase in something - การเพิ่มขึ้นอย่างรวดเร็ว

trade: the buying and selling of goods and services - การค้าขาย

trend: a gradual change or development that produces a particular result   - ทิศทาง แนวโน้ม

tumble: to fall down - ล้ม,ล้มลง,ตกลง,หกคะเมน

unit: a part of a company or organisation that carries out a particular function; a group of people who work or live together, especially for a particular purpose - หน่วย,กอง,กลุ่ม

value: how much something is worth in money or other goods for which it can be exchanged - มูลค่า

vault: a room, especially in a bank, with thick walls and a strong door, which is used to store money or valuable things in safe conditions - ห้องเก็บเงินในธนาคาร

volume: an amount of something - ปริมาณ

wealth: a large amount of money, property, etc. that a person or country owns - ความมั่งคั่ง

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