Thailand has become a major hub for gold

Thai goldThailand saw a 57 per cent year-over-year rise in third quarter gold jewelry demand, and a 126 per cent year-on-year rise in bar and coin investment, according to World Gold Council data, Business Insider reported.

“Thailand staged the most impressive rally, more than doubling from year-earlier levels,” the report said of the surge in Thailand’s investment demand for gold. Gold demand was boosted by concerns that the Thai baht might be devalued.

“The prospect of a devaluation of the Thai baht boosted demand among domestic investors as a means of storing wealth. The increasing prevalence of small gold bars within jewelery retailers across the Asian region supported demand.”

But this wasn’t the only reason. “This was in no small part due to Thailand being used as a route to channel gold into other markets, notably India and Vietnam.”

Earlier this year India moved to suspend gold imports from Thailand. India had a 1% duty on the import of gold jewelry from Thailand at the time, compared with 10% on other countries.

Indian officials believed gold imports from Thailand originated elsewhere and that Thailand was taking advantage of the bilateral free trade agreement between the two nations.

Thailand’s consumer demand for gold was 35.6 tonnes and paled in comparison to 148.2 tonnes in India, and 209.6 tones in mainland China. But the year-over-year-growth demand has been huge.



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Thailand saw a 57 per cent year-over-year rise in third quarter gold jewelry demand, and a 126 per cent year-on-year rise in bar and coin investment, according to World Gold Council data, Business Insider reported. "Thailand staged the most impressive rally, more than doubling from year-earlier levels," the report said of the surge in Thailand's investment demand for gold. Gold demand was boosted by concerns that the Thai baht might be devalued. "The prospect of a devaluation of the Thai baht boosted demand among domestic investors as a means of storing wealth. The increasing prevalence of small gold bars within...

Thai goldThailand saw a 57 per cent year-over-year rise in third quarter gold jewelry demand, and a 126 per cent year-on-year rise in bar and coin investment, according to World Gold Council data, Business Insider reported.

“Thailand staged the most impressive rally, more than doubling from year-earlier levels,” the report said of the surge in Thailand’s investment demand for gold. Gold demand was boosted by concerns that the Thai baht might be devalued.

“The prospect of a devaluation of the Thai baht boosted demand among domestic investors as a means of storing wealth. The increasing prevalence of small gold bars within jewelery retailers across the Asian region supported demand.”

But this wasn’t the only reason. “This was in no small part due to Thailand being used as a route to channel gold into other markets, notably India and Vietnam.”

Earlier this year India moved to suspend gold imports from Thailand. India had a 1% duty on the import of gold jewelry from Thailand at the time, compared with 10% on other countries.

Indian officials believed gold imports from Thailand originated elsewhere and that Thailand was taking advantage of the bilateral free trade agreement between the two nations.

Thailand’s consumer demand for gold was 35.6 tonnes and paled in comparison to 148.2 tonnes in India, and 209.6 tones in mainland China. But the year-over-year-growth demand has been huge.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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