MTS Gold recommends investing in gold amidst global volatility, suggesting a long-term DCA (Dollar Cost Averaging) strategy, but warns that using margin carries a high risk of losses.

MTS Gold recommends investing in gold amidst global volatility, suggesting a long-term DCA (Dollar Cost Averaging) approach. However, they warn that using margin carries a high risk of losses and foresee potential negative returns on gold this year due to ongoing wars and the Federal Reserve raising interest rates. Support levels are seen at $3,600-$3,800 per ounce.

Date 18 July 2569 Dr. Kritcharat Hiranyasiri, Chairman of the Board of Directors, MTS Gold Group (Mae Thong Suk). Speaking at the 2569 Advanced Economic Journalists' Capacity Building Program on the topic of "Alternative Assets: Gold, a Worth Investing In?", he stated that gold remains one of the most attractive alternative assets for long-term investment. This is because it has long been globally recognized, possesses high liquidity, is traded worldwide, and can preserve wealth and hedge against inflation and economic uncertainty.

Dr. Kritcharat said Gold is an asset that offers moderate returns compared to risky assets like stocks, but has the advantage of lower risk. Therefore, it is suitable for diversifying investment portfolios and is one of the investment strategies that investors worldwide prioritize.

However, he warned that the damage suffered by many gold investors was not caused by the gold itself, but by the use of leveraged financial instruments such as gold futures trading or margin investing, which allows investors to hold high-value assets with only a small initial investment, resulting in profits and losses being amplified many times over.

"For example, if a 10% margin is used and the price of gold falls by only 2%, investors could lose up to 20% of their investment. Therefore, Gold Futures are considered more suitable for short-term speculation than long-term investment."

For those who wish to accumulate wealth. Dr. Kritcharat recommends using Dollar Cost Averaging (DCA), or regularly saving up for gold, which helps reduce the risk from price volatility. Nowadays, you can start saving in gold with just a few hundred baht through digital platforms, making investing in gold more accessible than ever before.

Furthermore, digital technology is continuously transforming the way we invest in gold, including online gold trading, gold savings plans, and the development of gold-referenced tokens. This provides investors with more options, reinforcing the fact that "gold will never die" because it can adapt to the digital world and remains recognized as a real asset.

Dr. Kritcharat also stated that global investment trends reflect the increasing role of gold, with many central banks continuously increasing their gold holdings in international reserves, especially after the Russia-Ukraine war. This led many countries to hold more gold to diversify their risk from holding foreign currencies.

However, given the ongoing economic and geopolitical uncertainty, gold remains an asset that helps preserve wealth, diversify risk, and is a key component of long-term investment portfolios. Investors should choose the right investment tool to suit their objectives; gold savings are suitable for wealth building, while investment in gold futures should be limited to those with a high risk tolerance and seeking short-term speculation.

Furthermore, the outlook for gold investment this year suggests it may yield negative returns due to the Middle East conflict driving up oil prices and inflation, potentially leading the US Federal Reserve to raise interest rates. Gold fears rising interest rates, so if the Fed raises rates once, gold is likely to fall to $3,800 per ounce. If the Fed raises rates twice, gold could fall to $3,600 per ounce. The outlook would likely improve next year if the Middle East conflict ends.

Dr. Kritcharat said that, in addition, the overall gold market has been affected by the Bank of Thailand's measures to control gold trading, which it views as a cause of the strong baht and to prevent money laundering. This has resulted in a nearly 60% decrease in online gold trading volume. Furthermore, the association is currently negotiating with the government regarding a potential tax on gold, as such a measure would diminish the competitiveness of Thai gold businesses and push the market to Singapore and Hong Kong, which have declared themselves as potential gold hubs.

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