Gold prices send Thai, Indian buyers into a frenzy after Ukraine war stokes inflation
- A Thai celebrity liquidated her gold bars and then felt foolish; an Indian man called off his wedding as his fiancee’s family couldn’t afford gold
- Investors have piled into gold, a safe haven in times of crisis. But economic hardship is forcing others to cash out
Thai actress Patcharasri Benjamas was experiencing seller’s remorse after unloading her gold bars three weeks ago. If she waited a little longer, she could have pocketed more money from soaring gold prices amid an investor rush to hoard the precious metal.
Benjamas initially posted her triumph online thinking she hit the jackpot at 30,000 baht (US$895) per one baht weight (15 grams) only to return to social media telling fans “you are welcome to insult me!” after prices continued to rise to 32,450 baht (US$968).
On Tuesday, gold prices hovered around 31,897 baht (US$954).
In times of inflation, the value of cash falls. Because gold is denominated in US dollars, it becomes cheaper to buy when currencies like the US dollar drops in value resulting in higher demand and thus higher prices.
Shortages in oil supplies from the Black Sea and exacerbated disruptions in pandemic-hit supply chains sent investors packing for gold, a safe-haven commodity during times of crisis.
