Despite high prices, Thailand leads Asia in demand for gold. The latest report from the World Gold Council shows an increase in Thailand’s gold demand,even as global gold prices reach record highs. thailand’s gold market showed resilience wiht a 22% increase in bar and coin investment and a 12% rise in jewelry demand, defying global trends. Global gold demand increased by 4% in the second quarter of 2024.
Thailand’s consumer gold demand enjoyed the highest growth in Southeast Asia, rising 20% year-on-year to 9 tonnes.This growth was supported by the overall increase in global gold demand, which hit record highs, supporting rising prices.
Additionally, central banks continued to buy gold, with 1,044.6 tonnes purchased in 2024, following purchases of 1,050.8 tonnes in 2023 and 1,080.01 tonnes in 2022. This trend is seen as a safe haven investment to mitigate risks from global economic uncertainty, including the US trade war and geopolitical risks.
At the end of the day, the gold price in Thailand was adjusted to buy at 46,500 baht per baht and sell at 46,600 baht per baht, with the world market price (Spot) at 2,903.50 US dollars per ounce. The price increased by about 600 baht from morning to evening.
Expert Interview:unha Coca-Cola «bb8_062» :man:[size=1] Expert Analyst on Global Gold Market trends
Table of Contents
- Expert Interview:unha Coca-Cola «bb8_062» :man:[size=1] Expert Analyst on Global Gold Market trends
- Interview
- Q1: Can you provide some insights into why Thailand is leading Asia in gold demand despite the high global prices?
- Q2: what are the primary drivers behind the 22% increase in bar and coin investment and the 12% rise in jewelry demand in Thailand?
- Q3: How does the trend of central banks purchasing gold fit into the overall demand picture for 2024?
- Q4: Can you explain why the global demand for gold saw a 4% increase in the second quarter of 2024?
- Q5: How does the price adjustment for gold in Thailand ultimately impact consumers?
- Conclusion
- Interview
In this exclusive interview,the Senior Editor of world-today-news.com sits down with our specialist guest, an expert on the gold market, to discuss the remarkable growth in gold demand in Thailand adn the broader global trends that are driving this surge.
Interview
Q1: Can you provide some insights into why Thailand is leading Asia in gold demand despite the high global prices?
Expert Analyst: Several factors contribute to this trend. First, gold is considered a safe-haven investment in times of economic uncertainty, and Thailand is no exception.The ongoing global economic complexities, including the US trade war and geopolitical risks, have bolstered Thailand’s appetite for gold. Additionally, cultural significance plays a crucial role. Gold jewelry is deeply ingrained in Thai traditions, including weddings and festivals, which further stimulates demand even at higher prices.
Q2: what are the primary drivers behind the 22% increase in bar and coin investment and the 12% rise in jewelry demand in Thailand?
Expert Analyst: The primary drivers include a mix of cultural and investment motives. In Thailand, gold is not just a financial asset but also a means of saving and wealth preservation. The impressive growth in bar and coin investments indicates that more Thai consumers are viewing gold as a stable store of value, especially in the face of fluctuating financial markets. Moreover,jewelry demand is buoyed by cultural practices and social events,which keep the sector robust despite increased prices.
Q3: How does the trend of central banks purchasing gold fit into the overall demand picture for 2024?
Expert analyst: Central banks’ gold purchases are a significant indicator of confidence in gold as a safe-haven asset. In 2024, central banks continued their buying spree, acquiring over 1,044.6 tonnes of gold.This trend underscores gold’s role as a hedge against global uncertainties and currency fluctuations. As central banks stock up on gold, it further supports the bullion’s market value, influencing both institutional and consumer behavior, contributing to overall demand.
Q4: Can you explain why the global demand for gold saw a 4% increase in the second quarter of 2024?
Expert Analyst: The global gold demand increase of 4% reflects a broader trend of investors seeking refuge in stable assets. Factors such as geopolitical instability, rising inflation, and doubtful economic growth forecasts have refocused investor attention on gold. Besides, the impact of cultural practices in regions like Asia, alongside central banks’urchases, has amplified global demand, pushing it into record highs.
Q5: How does the price adjustment for gold in Thailand ultimately impact consumers?
Expert Analyst: The end-of-day adjustment,with gold prices sits at around 46,500 to 46,600 baht per baht,reflects the acheté price movement of the world market,which closed at $2,903.50 per ounce. Such fluctuations influence consumer sentiment, and any price increase can affect purchasing decisions. However,the resilience shown in Thailand’s gold market suggests that despite higher prices,consumer interest remains robust,driven by both cultural importance and investment value.
Conclusion
The insights from our expert on the gold market provide a clearer picture of thailand’s remarkable demand surge despite high gold prices. Cultural significance, safe-haven investment, and central bank purchases are key drivers that have propelled thailand to the forefront of gold demand in Asia. These trends underscore gold’s enduring value as a stable asset in uncertain times and highlight its pivotal role in both investment and cultural practices.
