In the first quarter, Vietnam’s gold demand decreased by 15%, dropping to 15.5 tons compared to the previous year, as reported by the World Gold Council.
The decrease, primarily due to rising costs and inadequate supplies, marked one of the most significant declines in Asia—only surpassed by Sri Lanka and China, as mentioned in a recent report.
The demand for gold bars and coins decreased by 15%, totaling 12 tons, which made Vietnam the sole ASEAN nation to experience a reduction in this sector. According to the World Gold Council, the decrease was due to restricted availability, leading to higher premiums—additional fees added by dealers to offset expenses or increase profits.
In Vietnam, the demand for jewelry fell to 3.5 tons as well, aligning with wider regional and international patterns. Meanwhile, Singapore witnessed a more pronounced 20% decrease in gold jewelry usage, whereas Thailand observed an 8% reduction.
The prices of both ornate and simple gold rings increased by 20% in Vietnam, reaching VND101.5 million and VND100.8 million per tael (which weighs 37.5 grams), respectively.
Investors clung to their gold holdings, leading to a shortage and decreased sales.
PNJ, Vietnam’s sole publicly traded gold retailer, reported at their recent annual general meeting that sales declined during Valentine’s Day (February 14) and International Women’s Day (March 8).
On February 2nd, which marks the God of Wealth Day when people typically purchase gold for good fortune, trading activity appeared notably quiet.
The organization’s heads attributed this to
rapidly rising gold prices
Many individuals are clinging to their gold with expectations of even higher prices, they noted.
The council emphasized gold’s function as a secure haven asset and an inflation safeguard, noting that currency devaluation and geopolitical tensions have encouraged investments in gold bars and coins across various nations in Southeast Asia.
In Thailand, optimistic price forecasts drove investment demands, although these demands were half of what they were in the prior quarter.
When it comes to jewelry, certain markets have observed businesses adjusting to changing consumer preferences. For example, in Malaysia, jewelers implemented trade-in initiatives for used jewelry to increase sales and maintain enthusiasm for gold items, as reported by the council.
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