Thai Borrowers Struggle with Gold Price Fluctuations Amid Economic Downturn

Thailand's pawnshop industry is facing increased scrutiny as the country grapples with an economic downturn. Formal pawnshops have been a staple in Thai society for nearly a century, serving as a safety net for families struggling financially.

However, many borrowers are now seeking to default on their loans after the gold price dropped from 81,950 baht per baht-weight (about 15 grams) to 62,500 baht. This has left some individuals facing significant losses, with one social media user expressing concerns about being sued for the difference.

According to legal experts, borrowers who pawned their gold at licensed pawnshops can simply walk away without incurring additional costs. However, those who used private loan contracts face stricter obligations and may be liable for paying the remaining balance if the gold price falls.