Gold loans glitter for banks

Loan against gold is the best route for monetising the yellow metal, and the Covid pandemic is acting as a catalyst for it

In the middle of April this year, facing acute cash crunch, Thais rushed to sell gold in Bangkok’s Chinatown. Wearing masks and keeping a safe distance from one another, thousands started queuing up hours before the shops opened as the Covid-19 outbreak led to millions of job losses. With people selling ornaments, jewellery and bars in hordes, the gold shops ran out of cash, forcing Thai Prime Minister Prayuth Chan-ocha to ask them to sell gradually, not in large amounts, and help the gold shops cope with the buying pressure. 

For Thais, gold has always been a popular saving instrument,