Delays for Thai physical gold exchange

Establishment of a physical gold exchange remains up in the air after recent negotiations between the Stock Exchange of Thailand and gold dealers over management power ended in discord.
Despite a mutual agreement in principle to set up a spot gold exchange in Thailand, a tug-of-war between the SET and gold traders has made it impossible to occur this year.
MTS Gold president Kritcharat Hirunyasiri said questions of managerial power had not been settled yet.
‘The SET has proposed taking a majority stake in the new exchange and requested the power to set its direction, while gold traders are concerned they could lose control of the exchange and see their benefits reduced’ he said.
Mr Kritcharat described the process as moving at a snail’s pace but said at least the SET and gold dealers were still talking.
Funding for the physical gold exchange is not a problem, as both sides have ample cash, he said, adding that setting it up would cost more than 1 billion baht.

This post was published at TruthinGold on November 28, 2014.