Thailand's gold demand surged by 17% year-on-year in the first quarter of 2025, reaching 9.1 tonnes, according to data from the World Gold Council.
This marks the strongest growth in gold consumption across Southeast Asia, eclipsing other regional markets such as Singapore, Malaysia, and Indonesia, where demand increased by 5% to 8%.
In contrast, Vietnam experienced a decline of 15% in gold demand during the same period.
The increase in Thailand's gold consumption has been largely attributed to a heightened investor appetite for safe-haven assets amidst ongoing global uncertainties, including trade tensions, fears of recession, and various geopolitical risks.
The gold bar and coin sector saw an even more significant increase, with sales rising by 25% to 7.4 tonnes.
Louise Street, a senior analyst at the World Gold Council, noted that this spike in demand reflects a tumultuous start to the year for global markets.
She indicated that investment demand has propelled first-quarter gold consumption to its highest level since 2016.
Globally, gold demand, including over-the-counter (OTC) trades, rose by 1% year-on-year, totaling 1,206 tonnes, despite gold prices exceeding US$3,000 per ounce.
In Singapore, the market for gold bullion also demonstrated impressive growth, with purchases reaching 2.5 tonnes—a remarkable 35% increase year-on-year, marking the largest rise since 2010.
Market dealers have reported a sustained momentum in buying, even as gold prices surged to US$3,500 per ounce.
Gregor Gregersen, founder of the high-security vault service The Reserve in Changi, noted a shift among some ultra-wealthy clients from investing in paper gold to holding physical gold.
He reported individual purchases by clients reaching as much as S$70 million, emphasizing a strategic move to mitigate risk through tangible assets.