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Research Outline

Prepared for Anna E. | Delivered January 19, 2021

Thai Gold Investment

Goals

To understand the role that gold plays for Thai personal investors by looking at the trends in their behaviors and attitudes towards environmental and socially conscious investments including tools, services, or products that enable the investments. This will also include government initiatives as well as an exploration of the investors' needs and drivers towards investment, exploration of their emotional and functional associations with gold, reasons for choosing the investment instruments that they chose, and how they make that decision.

Early Findings

  • According to Reuters, "Thai households have invested a lot in gold and will sell the gold whenever gold prices go up or during economic hardship. " Gold selling has been the trend among Thai personal investors in 2020 as the price of gold soared due to the pandemic.
  • According to Tanarat Pasawongse, chief executive officer of Thailand’s largest gold trader - the Hua Seng Heng Group, "Gold selling will continue for a while as prices are still high. Most people are selling gold jewelry, which reflects the bad economy, so people want to have cash."
  • Pasawongse also said, "Thais have become more skilled in gold investment. Some of them have the patience to hold their gold for a profit once the price rises."
  • In 2020, the "trade in gold online futures has risen to nearly 32,000 daily contracts" which is twice the 2019 figure (16,000).
  • Hua Seng Heng and MTS, two of Thailand’s largest gold exporters and importers and exporters, have observed an "ongoing growth in their gold savings offerings." MTS Gold introduced the program at the beginning of 2020 and it has significantly grown since then with about 10,000 sign-ups for 5 months "as if offered gold savings from 150 baht" or $5.
  • A study on individual Thai investors reveals that "the convenience in gaining information, investment cost, the knowledge, the understanding of the investment have a crucial impact on attitude towards stock trading of individual Thai investors in different groups."

Summary of Findings

  • We have presented some information related to the attitudes and behavior of Thai local/personal gold investors. The initial hour of research revealed that there is minimal information available with regard to Thai local gold investors.