In a bid to boost gold shops, the Commerce Ministry is exploring the idea of online gold trading.
The ministry plans to set up a team to establish an online trading system. There will also be restrictions on gold trade via the Internet to protect people from cheating.
After a meeting with representatives from the Gold Traders Association yesterday, Yanyong Phuangrach, commerce permanent secretary, said the fluctuating gold price had prompted traders and buyers to purchase gold for speculation rather than as a long-term asset or ornament as in the past.
The online trading will be a new business channel for buyers. However, the government should lay down trading restrictions to ensure consumer protection.
"The system is designed to facilitate buyers in purchasing. In addition, it will boost trade at goldsmith shops," he said.
It is expected that the online trading system for gold could be launched by the first quarter of next year.
Jitti Tangsithipakdi, president of the association, said that the downsizing in the volume of gold trading in gold futures would allow more small traders to access the market.
If prices continue to rise, the number of goldsmith shops left in Thailand will reduce to about 10 per cent of the total 6,000 shops now.
The country's total gold imports reached 82 tonnes during the first nine months this year. However, total exports reached 130 tonnes last year. This reflects a change in consumer behaviour, from purchasing gold for savings to speculation.
"The government should balance between old-style gold trading [for savings] and speculation to protect hundreds of thousands of workers in the industry," Jitti said.
World gold prices are soaring and could hit US$1,200 per ounce (Bt40,800). In addition, if the exchange rate is quoted at Bt32-33 per dollar, the domestic gold price could reach Bt18,000 per 15.16 gram or one baht weight.