Export of gold surges as demand for safe haven rises amid global downturn
Thailand’s export of jewellery and ornaments between January and May this year surged 108.01 per cent year on year to US$9.579 billion (Bt298 billion), according to Deputy Commerce Minister Weerasak Wangsuphakijkosol.
However, if gold shipments are not included, export of jewellery and ornaments have actually dropped 34.8 per cent to $1.984 billion. Shipment of gold, however, has risen 386.1 per cent to $7.595 billion.
He attributed the drop in exports to the Covid-19 pandemic, which has forced several countries to enforce lockdown measures. As a result, consumers have been cautious about spending.
The demand of gold, however, has risen as people are rushing to buy this asset as a safe haven at a time when the economy is sapped. He added that if there is no second wave of Covid-19 infections and countries continue to ease lockdown measures, Thailand's jewellery and ornament exports should pick up in the second half of this year.
