Demand for gold bars in Vietnam is at its highest in 10 years.

According to the World Gold Council, total demand for gold bars and coins in Vietnam in the first half of 2024 reached 26 tons, the highest level in the past 10 years. Meanwhile, demand for gold jewelry decreased due to record high gold prices.

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The World Gold Council (WGC) has just released a report on gold demand trends in the second quarter of 2024. Accordingly, total global gold demand increased by 4% over the same period last year to 1,258 tons.

In Vietnam alone, the demand for gold bars and coins in the second quarter of 2024 increased by 30% compared to the same period in 2023, to 12 tons. The total demand for gold bars and coins in the first half of 2024 in Vietnam reached 26 tons, the highest level since 2014. The reason is that investors continue to seek gold bars and coins as a safe storage channel to cope with the increase in inflation, devaluation of domestic currency, and ineffective investment performance from the domestic stock and real estate markets.

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Meanwhile, record high gold prices have caused global jewelry gold demand in the second quarter of 2024 to fall 19% year-on-year. Of which, jewelry gold demand in Vietnam in the second quarter of 2024 fell 15% year-on-year to just 3 tons. This decline was mainly driven by gold prices, although slowing GDP growth also impacted buyer sentiment. Jewelry gold demand in Vietnam in the first half of 2024 fell to just over 7 tons, the lowest level in the first half of the year since 2020.

Nhung Nguyen

Source: https://www.sggp.org.vn/nhu-cau-vang-mieng-tai-viet-nam-tang-cao-nhat-trong-vong-10-nam-post751893.html