Thai Gem and Jewellery Exports Surge as Geopolitical Tensions Drive Gold Demand
Exports reached $1.8 billion in January 2026, while gold shipments skyrocketed by 136% as investors seek safe-haven assets amidst Middle East instability
- Thailand's total gem and jewellery exports surged by 57.34% in January 2026, driven primarily by a massive increase in gold shipments.
- Gold exports skyrocketed by 136.16% as investors sought the metal as a safe-haven asset amidst global instability.
- The rush to gold is directly linked to geopolitical tensions, including conflicts in the Middle East, which has prompted investors to hedge against uncertainty.
Exports reached $1.8 billion in January 2026, while gold shipments skyrocketed by 136% as investors seek safe-haven assets amidst Middle East instability.
Thailand’s gem and jewellery exports made a strong recovery in the first month of 2026, bolstered by seasonal festive spending and a global rush toward safe-haven assets.
According to the Gem and Jewellery Institute of Thailand (GIT), exports—excluding gold—totalled $1,808.12 million in January, representing a 4.26% year-on-year increase.
When including gold, the total export value reached $4,566.20 million, a staggering 57.34% jump compared to the same period last year.
Sumeth Prasongphongchai, director of GIT, attributed this growth to robust consumer spending during the New Year and Lunar New Year periods, alongside significant geopolitical shifts.
Gold Hits Record Highs
The standout performer was gold, with exports soaring 136.16% to $2,758.08 million.
Market analysts suggest that investors are aggressively buying gold as a hedge against global instability, specifically citing the ongoing conflict between Israel and Iran and the United States’ tensions with NATO regarding Greenland.
With Goldman Sachs raising its price forecasts, gold is expected to continue its record-breaking run throughout the year.
Market Performance and Shifts
Export performance varied significantly across major global hubs:
The Middle East & Europe: Shipments to the UAE surged by 254.58%, while Switzerland and Japan saw increases of 155.38% and 70.70%, respectively.
The UK & Hong Kong: Demand remained healthy in Britain (up 12.12%) and Hong Kong (up 51.65%).
The United States: Conversely, exports to the US fell by 36.55%. Experts believe this decline is due to American importers stockpiling goods late last year, leading to a temporary slowdown in new orders.
While precious metals and platinum jewellery saw substantial growth, the diamond sector faced challenges, with exports of polished diamonds dropping by 21.29% and rough diamonds falling by 97.54%.
Uncertain Outlook for 2026
Despite the positive start, GIT has warned of a volatile year ahead. Global economic growth is projected to slow to 2.7%, weighed down by high public debt and structural uncertainties.
Sumeth noted that the jewellery industry is particularly vulnerable to the escalating conflict in the Middle East.
"Dubai and Tel Aviv are critical trading hubs for gold and diamonds," he explained. "Prolonged tensions threaten to disrupt shipping routes, increase insurance premiums, and extend delivery times."
Furthermore, the rising cost of raw materials—driven by the surge in gold, silver, and platinum prices—is putting pressure on manufacturers' margins.
GIT advises Thai exporters to diversify their market reach and manage raw material costs meticulously to remain competitive in a fluctuating global market.
