Gold traders adjusting to the challenge of digital disruption

With major industries in Thailand responding to the challenge of digital disruption by embracing the technology, gold traders are jumping on the wagon of digitalisation.
MTS Gold Group will this year focus on servicing investors with a gold saving platform online through blockchain technology for higher security and transparency, while the country’s leading gold trader YLG Bullion International introduces its gold saving programme with a minimum amount of Bt100.
The move came after the Bank of Thailand’s Monetary Policy Committee on February 5 cut the policy rate to 1.00 per cent, a historical low, to shore up the softening economy in light of the new coronavirus outbreak, drought and delay to the fiscal 2020 budget disbursement. Several banks have lowered their interest rates, resulting in lower returns to investors.
According to a recent ManpowerGroup survey, Thais save 50 per cent of their money in fixed deposits. Thus, it is highly likely that depositors will search for higher yields by investing in other assets, from dividend stocks to safe-haven gold.
Since the beginning of this year, gold prices have been rising amid investors’ concerns over global low interest rates, US-Iran tensions and outbreak of the new coronavirus.
On the MTS platform, activated in January this year, investors can execute gold savings around the clock with a minimum investment of Bt150. Gold saved can be exchanged into physical gold if needed, said Nuttapong Hirunyasiri, executive chairman of MTS Gold Group. This platform targets the new generation and low-income earners seeking to save.
“Being used for bitcoin trading initially, blockchain technology has been deployed in gold business. We assure platform users security as we are the platform owner and manage all the systems involved. We also have long experience in the business,” he said.
MTS Gold Group plans to expand overseas with Asean countries as the first target, after assessing responses in the local market.
In 2020, MTS Gold Group expected to see about 10,000 gold savers with  trading value of Bt500 million on the platform.
YLG Bullion International has launched its YLG Goldsaving programme through a website. Gold savers are able to buy gold at a determined price  24 hours a day, said Pawan Nawawattanasub, CEO of YLG Bullion International.
“Spending and savings behaviour of new-gen people in the 4.0 period is not certain. Therefore YLG’s gold investment pattern is more flexible. Investors can design their own investment style in gold. They can choose the number of their savings per month. They can also fix the costs each time they do gold savings, and sell their saved gold,” she said.
“With technology fast advancing, leading to continuous decline of gold buyers at the stores, we are attempting to adjust ourselves to catch up with the disruption. We will not wait to be disrupted, we will meet the challenge,” Nuttapong said.

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