ASEAN Poised to Become Third Global Gold Market Pillar as Thailand Leads Regional Surge

 

Southeast Asia has the potential to become the third major pillar of the global gold market alongside China and India, according to the World Gold Council, with Thailand positioned to lead this regional transformation through collaboration and digital innovation.

 

Speaking at a media roundtable in Bangkok on Thursday, Shaokai Fan, the World Gold Council's Global Head of Central Banks and Head of Asia-Pacific (excluding China), outlined how ASEAN nations could leverage their collective strengths to challenge the established China-India duopoly in global gold demand.

 

"With Thailand's gold market being very well established, there is a possibility for collaboration to make Southeast Asia the third pillar in terms of gold demand, with China being the first, India second, and Southeast Asia potentially becoming the third," Fan said during the session titled "Inside the Gold Mindset".

 

 

 

Regional Collaboration Key to Success

Fan identified two critical areas where ASEAN collaboration could drive this ambition: developing regional self-sufficiency and sharing expertise across borders.

 

Currently, much of Southeast Asia's gold follows an inefficient route—mined locally in countries like Indonesia and the Philippines, shipped to Switzerland for refining, then flown back to regional markets for sale.

 

Fan suggested this could be transformed into a more integrated regional ecosystem.

 

"If you can make that ecosystem more regional and have more refining capacity in this region," Fan explained, locally mined gold could be refined within Southeast Asia—perhaps in Thailand or Singapore—and sold regionally, reducing dependence on Swiss refineries.

 

The second pillar involves leveraging Thailand's market maturity to boost regional development.

 

"The Thai gold industry is very well established... if they are willing to share their experiences and expertise, it can inspire other markets," Fan noted, suggesting this knowledge transfer could help emerging markets reach "the same level of understanding and usage of gold as Thailand."

 

 

 

Thailand's Remarkable Resilience

Thailand has demonstrated exceptional resilience in gold demand, ranking seventh globally for gold bar and coin demand in 2024 with 40 tonnes—a robust 17% year-on-year increase.

 

The country's overall consumer gold demand has grown steadily from 37 tonnes in 2021 to 49 tonnes in 2024.

 

This momentum has continued into 2025, with Thailand posting impressive second-quarter figures: overall consumer gold demand rose by 12 tonnes, representing a 25% year-on-year increase, whilst Thai investors increased their bar and coin investment by 38% year-on-year to 10 tonnes.

 

Notably, Thailand reported the strongest quarter-on-quarter growth in bar and coin demand within ASEAN, up 35%, whilst neighbouring countries showed declines.

 

"This sustained demand underscores gold's enduring status as a reliable and preferred investment instrument in Thailand," Fan observed, noting that Thais view gold as a strategic asset providing long-term returns and serving as a hedge against uncertainties.

 

 

 

Digital Transformation Driving Growth

The rise of digital gold platforms has significantly contributed to Thailand's market strength, with applications like "Pao Tang" making gold investment more accessible to younger generations and small investors, promoting broader financial inclusion.

 

 

This digital shift aligns with the World Gold Council's ambitious Gold247 initiative, designed to transform the global gold market through digitalisation and standardisation.

 

The comprehensive programme includes three key components:

Gold Bar Integrity (GBI) uses blockchain technology to map gold from mine to vault, proving authenticity and ethical sourcing—particularly appealing to younger Thai investors interested in responsible investment choices.

Standard Gold Unit aims to establish a global standard for digital gold, reducing market fragmentation and lowering trading barriers. This would allow the many different national standards—such as Thailand's 96.5% purity and baht weight system—to be unified under a single unit.

Wholesale Digital Gold represents the next-generation ecosystem for wholesale financial market participants to trade, hold, and utilise gold as collateral.

 

 

 

Market Outlook Remains Robust

Fan highlighted strong fundamentals supporting continued gold demand, noting that 95% of reserve managers believe global central bank gold reserves will increase over the next 12 months.

 

Central banks added 166 tonnes in Q2 2025, maintaining significantly elevated purchasing levels despite some deceleration.

 

"Thai investors should be expected to keep gold as a strategic anchor in their portfolios moving forward into 2026, given rising tariffs, persistent inflation, central bank uncertainty, and potential political shocks both in Thailand and abroad," Fan predicted.

 

The outlook extends beyond Thailand, with Fan noting "strong and positive development in neighbouring countries such as Vietnam, Laos and Indonesia," reinforcing the potential for regional growth.

 

 

 

Innovation Launches Continue

The World Gold Council recently launched "Pooled Gold Interests" (PGIs), a new digital gold unit enabling banks and major institutional investors to buy and sell fractionalised ownership of physical gold held in segregated accounts.

 

This initiative will be trialled with commercial participants in London during the first quarter of next year.

 

"We see significant future opportunities for the Thai gold market moving forward," Fan concluded. "The WGC believes initiatives such as Gold247 are setting the stage for a future where gold could be a key component of the Thai digital economy and support Thailand's regional ambition to become a digital financial hub."

 

The World Gold Council is a non-profit market development organisation dedicated to expanding and improving the global gold market through collaboration with governments, regulators, and industry participants.