Thailand's gold trading volume rose 18% year on year in 2023
Thailand's gold trading volume in the past 10 years has exceeded 63 tons, making it the third-largest gold trading market in Asia, behind only China and India, according to Pawan Nawawattanasap, chief executive officer of YLG Corporation Co Ltd (YLG).
Pawan attributed the increase in gold trading in Thailand to the following factors:
▪︎ Political and economic uncertainty
In the past few years, Thailand has experienced a number of political and economic challenges, which have led investors to seek safe haven investments, such as gold.
▪︎ Inflation
Inflation has been rising in Thailand in recent years, which has also led investors to seek out investments that can help protect their wealth.
▪︎ Traditional investment preferences
Gold has long been a popular investment in Thailand, and it continues to be seen as a safe and reliable investment by many Thais.
The increase in gold trading in Thailand is likely to continue in the coming years, Pawan said, adding, the country's political and economic challenges are likely to persist, and inflation is expected to remain high. These factors are likely to keep gold a popular investment in Thailand.
Thailand's gold trading volume in 2023 was 63.4 tons, up 18% from 2022. The country's gold imports in 2023 were 54.9 tons, while its gold exports were 8.5 tons, Pawan said.
Thailand's gold trading is dominated by retail investors. In 2023, retail investors accounted for 70% of Thailand's gold trading volume. Institutional investors accounted for the remaining 30%, Pawan said.
