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To: goldsnow who wrote (11462)	5/9/1998 1:47:00 PM
From: goldsnow	Respond to of 116893

Thai gold jewellery sales shine as baht stabilises 07:36 a.m. May 08, 1998 Eastern By Anchalee Koetsawang BANGKOK, May 8 (Reuters) - Thailand's gold jewellery market is regaining its glitter on the back of a more stable baht and cheaper world prices for the precious metal, industry officials said on Friday. Strong farm commodities prices have also boosted demand as farmers with limited investment alternatives put their money in gold after their harvests, they told Reuters. ''The trade in the retail market in the second quarter almost doubled from the first quarter this year. Prices are more stable and easing gold prices have helped support demand. It is easier to buy when currency risk is lessened,'' said Bancha Chansuwan, a marketing manager at importer Greatest Gold. ''People seem to resell less in the retail market but demand for investment rose substantially,'' he said. Thailand's economic turmoil erupted last year and quickly degenerated into the country's worst crisis after the government floated the tightly controlled baht in July. Thais rushed to sell gold for cash as the sinking baht pushed up the value of the metal in the local currency. But as rising prices dented demand, they turned to smuggling gold out of the country. The World Gold Council estimated that net sales of gold in Thailand during the second half of 1997 were 30 tonnes, contributing to a 71 percent drop in annual demand to 31 tonnes. Net sales of gold jewellery in the fourth quarter alone were almost 15 tonnes. That eased to just one tonne in the first quarter, according to the World Gold Council's office in Thailand. Investment-linked gold demand surged to 2.5 tonnes in the first quarter from 0.5 tonnes during the last three months of 1997, pushing up net gold purchases during the first quarter to 1.5 tonnes from minus 14 tonnes in the previous quarter. The baht has been firmer and more stable lately and is now being quoted around 38-39 per dollar compared with a historic low of 56.90 in January. ''The firmer baht makes the local price lower. The retail gold price is quoted around 5,300-5,500 baht per 15 grams compared to around 6,800-7,000 in January. The demand is partly influenced by prices,'' said a trader at a major gold shop in China Town in Bangkok. ''Now that the world gold price has dipped below $300 per ounce, it will bode well for demand. During Songkran (Thai New Year) in April, gold buying was quite active especially upcountry. Some farmers were loaded after they sold their corn and rice harvests which fetched good prices,'' he said. Traders said they expect the gold offtake during the second quarter to remain in positive territory. ^REUTERS@