The prime minister of Thailand has urged for moderation as gold sellers seek to cash in on the precious metal’s seven-year price high.
According to a report by the Bangkok Post, prime minister Gen Prayut Chan-o-cha asked for moderation from gold sellers rushing to capitalize on the soaring price of precious metals.
The prime minister said in a briefing on Wednesday,
I’m asking people to sell gradually, not in large amounts, as shops may face a cash crunch.
Gold rose to its highest level in seven years amidst concern over the economic fallout from the coronavirus pandemic.
The report claims gold shops in Thailand have struggled to cope with the long queues of sellers, with lines forming outside of businesses since earlier in the week.
Gold Traders Association chairman Jitti Tangsitpakdee said on Tuesday that shops were experiencing cash flow problems, as sellers vastly outnumbered buyers. Jitti refuted social media rumors that gold shops would be closing due to cash shortages and reassured the country that gold trading would continue unimpeded.
The report cited Wisakha Osaithai, a gold shop owner in Khon Kaen’s Muang district, explaining that people were in need of cash for essential spending.
Customers want cash for daily spending, so they decide to sell their gold.
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