Gold Bond Gold bond

Gold Bond Gold bond is the national loan bond which the Ministry of Finance adjured the Bank of Thailand to issue, manage, and repay to the bond holders with gold. That is the reason why it is called the “Gold Bond”. The primary objective of the bond circulation is to compensate for the payment in compliance with the Royal Decree on Budget. Such an unpleasant situation was caused by the fact that, during World War II, Thailand was faced with internal economic turmoil and severe inflation. The gold bond was launched from 24 June 1943 to 10 June 1944, with an 8-year maturity and at 3% interest annually. The interest was paid twice a year (every 24 June and 24 December) starting from the year 1944. The gold bond was due for redemption on 24 June 1951. However, after 24 June 1947, the bond holders had the right to withdraw his or her bond prior to the actual redemption due date after 24 June 1947. Such redemption could be in the form of gold instead of cash. In that case, the person who asked for redemption in gold had to submit a written notice at least three months prior to the actual due date for redemption. The Ministry of Finance bought gold which was in the reserve fund from the Bank of Thailand. Such gold was deployed in production of gold bonds for redemption. The gold bond came in four denominations: 10000-Baht in the form of bullion, as well as 1000-Baht, 100-Baht and 50-Baht in the form of coins. Upon the due redemption date, holders redeemed their bonds for 29,935,950 Baht, with non-redemption amounting to 64,050 Baht, making up 789 coins of 50-Baht value and 73 coins of 100-Baht value. At present, the gold bond in all denominations, namely gold bullion in a 10000-Baht denomination as well as gold coins in 1000-Baht, 100-Baht, and 50-Baht denominations are regarded as exquisite items displayed at BOT Museum only.