National gold consumption drops to 55.5 tons as demand for jewelry declines

According to the World Gold Council, the demand for gold in Vietnam is influenced by global economic trends, with projected gold consumption of 55.5 tons by 2023.

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The World Gold Council’s report on gold demand trends shows that annual gold demand (excluding the OTC concentrated market) will decrease to 4,448 tons in 2023, a 5% decrease compared to the increase in 2022. Since 2022, central banks have continued to buy gold at a staggering rate, bringing last year’s gold demand to a second record high of 1,037 tons, a decrease of 45 tons from the previous year.

Notably, overall consumer gold demand in Vietnam has slightly decreased by 6% compared to the same period last year, from 59.1 tons in 2022 to 55.5 tons in 2023. The price of gold bullion and gold coins has also seen a slight 2% decrease in 2023 compared to the same period, reaching 40 tons.

It is worth noting that overall consumer gold demand in Vietnam decreased slightly by 6% compared to the same period last year, from 59.1 tons in 2022 to 55.5 tons in 2023.

Notably, gold investment in Vietnam has significantly increased in the fourth quarter due to price adjustments. However, there has been a significant decline in demand for gold jewelry in Vietnam, down 16% to 15 tons. Gold demand has declined for four consecutive quarters compared to the same period last year. The reason is attributed to a slowdown in economic growth and relatively high inflation in the region.

At the end of 2023, gold prices surged, leading to a large consumption of gold by the people.

Mr. Shaokai Fan, Global Central Bank Director at the World Gold Council, stated that in the fourth quarter, Vietnam experienced a gold investment surge due to price adjustments. However, increased demand and limited investment options have resulted in significant discrepancies for official SJC gold bars. The continuous depreciation of the domestic currency throughout 2023, coupled with the fragility of the economy, has driven up gold demand.

According to the World Gold Council, global demand for gold bullion and coins has cooled down, decreasing by 3% due to strength in some markets, offsetting weakness in others. In other ASEAN markets, including Vietnam, Malaysia, Indonesia, and Singapore, demand for gold bullion and coins also decreased by 2%, 4%, 5%, and 8% respectively compared to the same period last year. Gold investment demand in Europe continues to decline sharply, down 59% compared to the same period last year.

SOURCEcafef
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