Thai Gold Demand Surges to Record High in First Quarter Since 2019
Thai gold bar and coin demand hit a six-year high of 10 tonnes in the first quarter of 2025, driven by economic uncertainty and investors seeking safe-haven assets amid rising geopolitical tensions. The surge represents a 35% year-on-year i
The World Gold Council has released its Q1 2025 gold demand trends report, revealing that gold bar and coin demand in Thailand surged to 10 tonnes—the strongest quarter for Thailand since 2019, with a 35% increase in value compared to the same period last year. Economic uncertainty and rising political tensions, combined with elevated gold prices, continue to drive demand for gold as a safe-haven asset in Thailand. Global gold demand across all sectors, including over-the-counter trading, increased 2% year-on-year to 1,231 tonnes. While demand volume rose moderately, the value skyrocketed to $193 billion, a 74% increase year-on-year. Retail investors worldwide are increasingly attracted to gold's price trajectory and safe-haven properties, pushing bar and coin demand up 42% year-on-year to 474 tonnes. Gold ETF demand remained positive in Q1, with holdings rising 62 tonnes, largely supported by continued strength in Asia-registered funds, which increased 84 tonnes during the quarter.
Gold jewelry demand, however, declined significantly by 23% year-on-year to 300 tonnes due to higher prices throughout the quarter. Thai jewelry demand followed global trends, dropping 5% year-on-year to 1.7 tonnes, with weakness visible in all major markets and notable declines in China (-32%), India (-19%), and the Middle East (-23%). Despite the volume decline, jewelry demand rose in value terms, reflecting consumer willingness to purchase gold at historically high prices. Market analysis suggests some jewelry consumption has shifted toward bars and coins, particularly in markets like China and India where jewelry serves as an alternative investment.
Sowkee Fann, Head of Asia-Pacific (excluding China) and World Head of Central Banks at the World Gold Council, stated that Thai investment gold demand delivered the strongest Q1 performance since 2019, with bars and coins surging 35% year-on-year to 10 tonnes. This signals investor confidence in gold, particularly given its strong performance amid rising geopolitical and economic uncertainties, supported by high inflation rates and persistently elevated prices, which should continue supporting investment demand and central bank purchases globally. Central banks worldwide remain a key demand driver, with net purchases of 244 tonnes in Q1, exceeding both the previous quarter and the five-year average, though some government institutions have increased gold sales.
