[Compiled by Luo Susu/Bangkok Report] Recently, Poo Peng, Director of the Office of Trade Policy and Strategy, Ministry of Commerce, said that considering the results of the survey by the World Gold Council, in the turbulent global situation, including geopolitical risks, it is certain that "gold" is one of the safe assets that Thai investors like to use for speculation and investment risk diversification.
According to international trade statistics from the website Kidkha.com, Thailand imported approximately 7.9 billion US dollars worth of unwrought gold and exported 5.9 billion US dollars in 2023, resulting in Thailand being a net gold importer with a deficit of 1.941 billion US dollars, ranked 7th in the world. China was the largest gold importer with a value of 88.052 billion US dollars, followed by India with a value of 42.511 billion US dollars and Turkey with a value of 25.71 billion US dollars.
When analyzing Thailand's international unwrought gold trade in the first 5 months of 2024, it was found that Thailand imported 75.4 tons of unwrought gold, an increase of 76.9% from the same period last year. The top three sources of unwrought gold imports are Switzerland, Hong Kong and Australia.
Phupol said it is noteworthy that most of Thailand's gold transactions are for domestic speculation and savings, and excess imports are used for processing and re-export, which is reflected in the total value of international trade in unwrought and wrought gold. It was found that the value of wrought gold trade accounted for only 7%, while the trade in unwrought gold accounted for 93%.
Almost all exports and imports are for private sector trade, not for financial stability. Thailand has the potential in unique handicrafts and designs, which, if seriously promoted, can create opportunities to increase income for the country by exporting fake gold or gold jewelry.
The data shows that in 2023, Thailand exported processed gold worth 649.7 million US dollars, an increase of 12.7% from the previous year. In the first 5 months of 2024, Thailand exported processed gold worth 122 million US dollars, a decrease of 46% from the same period last year. The top three export markets for Thailand are the United States, Hong Kong and Australia.
Su Mei, President of the National Gem and Jewelry Institute (GIT), said that the value of gold exports in May 2024 was 582.33 million US dollars, an increase of 135.39% year-on-year, as gold prices stabilized and volatility decreased. Speculative exports were in line with the previous period, with gold exports increasing compared to the continuous decline in the two months (March and April) as exporters were concerned about the risks caused by price volatility.
Looking at the first five months of 2024, the value of gold exports in January was 2.47237 billion US dollars, down 16.79% year-on-year, up 194.17% year-on-year. The export value in February was 740.46 million US dollars, up 309.51% year-on-year. The export value in March was 391.82 million US dollars, down 75.02%. The export value in April was 288.64 million US dollars, down 64.57% year-on-year.
Exports to almost all major export markets, including Hong Kong 25.84%; the United States 8.41%; Germany 14.93%; Belgium 57.68%; Italy up 0.10%; Japan up 5.31%, but the United Arab Emirates down 16.74%.
