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Gold Demand in Thailand Surges to 12 Tons in Q4/2021

Gold demand in Thailand has started to recover by 12 tons in Q4/2021.

The World Gold Council reports on the latest trends in gold demand. Annual global gold demand (excluding the OTC market) has recovered to 4,021 tons since COVID-19 broke out in 2020.

This trend is strongly reflected in Thailand, when consumer demand for gold reached 12 tons in Q4/2021, up 44% from Q3.

Thailand’s annual demand for gold jewelry was about 8 tons, up 38% from about 6 tons in 4Q/2020 with jewelry demand up 20% year-on-year. This is the third consecutive quarter of growth in demand. Since the beginning of the pandemic, this is the strongest quarter for gold demand and it shows that Thailand continues to recover from the effects of the coronavirus.

Andrew Naylor, CEO Asia-Pacific (excluding China) of the World Gold Council, said: “We saw a significant rise in bar and coin demand as Thailand moved from net disinvestment to net positive investment. The combination of lower gold prices and continued economic recovery, along with concerns about inflation and weakening of the baht played a big role in this investment trend.”

Thailand shifts from net sales to the positive net investment in gold bars and coins. The combination of falling gold prices and continued economic recovery has pushed annual demand for gold bars and coins to 29 tons, compared to net sales of 87 tons in 2020.

Global gold demand reached 1,147 tonnes in Q4 2021, the highest quarterly level since Q2 2019 and up nearly 50% year-on-year, according to the World Gold Council.

Retail demand for gold bars and coins surged 31% to an 8-year high of 1,180 tons, amid rising inflation and continued economic anxiety.

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