Gold has been a consistently popular alternative asset since ancient times. Today, it has become a prominent asset that generates interesting returns for investors in the financial world. This is evident from the price increase in 2024, where prices surged by more than 28% in US dollar terms. Record high prices were achieved multiple times throughout the year. Additionally, global gold demand rose by 35% compared to the previous year, with its value exceeding one hundred billion US dollars in the third quarter of 2024, emphasizing the enduring allure of this precious metal.

Global Gold Market Overview

On the supply side of gold, there has been a continuous upward trend in recent periods. In 2024, gold from mining reached 3,661.23 tons, an increase of 0.47% compared to the previous year. Similarly, recycled gold in 2024 stood at 1,370 tons, up 10.98% compared to the previous year.

Regarding total gold demand in 2024, it reached 4,974.47 tons (including over-the-counter securities trading: OTC), an increase of 0.58%. Excluding OTC, the volume was 4,553.75 tons, up 11.79% compared to the previous year. There are four main consumption sectors: gold jewelry, investment, central banks and financial institutions, and electronic and electrical equipment. The details for 2024 are as follows:

1. Gold jewelry represented the largest consumption sector at 1,877.10 tons, accounting for 41.22% of total demand. This marked a decrease of 11.06% compared to the previous year's level of 2,110.58 tons. Higher prices were the main factor weakening consumption in this sector.

2. Investment amounted to 1,179.53 tons, representing 25.90% of demand and ranking second. With gold prices rising throughout the year and setting multiple record highs, demand in this sector increased by 24.75%. This was the highest year for gold investment since 2020.

3. Central banks and financial institutions accounted for 1,044.63 tons, representing 22.94% of demand, a decrease of 0.59%. Purchasing accelerated in the fourth quarter, and this marked the third consecutive year that central banks made net purchases exceeding 1,000 tons.

4. Electronic and electrical equipment utilized 326.08 tons, representing 7.16% of demand, an expansion of 6.85%. This growth was particularly strong in the electronics industry due to the growth of AI technology, which requires CPUs, memory, and sensors—all of which use gold as a component.

Global Gold Price Trends

In 2024, the average gold price was $2,386.20 per ounce, an increase of 22.97% compared to the previous year's average price. Gold also set new record highs 40 times throughout the past year, boosted by investment particularly during the third and fourth quarters. Factors supporting gold prices included the beginning of interest rate cuts by the US Federal Reserve, followed by many central banks worldwide, increasing uncertainty in the global economic climate, the US presidential election, and rising tensions in the Middle East. Meanwhile, central banks around the world continued to accumulate gold, with buying momentum accelerating in the final quarter of 2024, increasing by 53.57% compared to the same quarter of the previous year.

Looking at the past decade, gold prices have shown a continuous upward trend. From an average price of $1,160.06 per ounce in 2015 to an average price of $2,386.20 per ounce in 2024, the price has increased by 105.70%. Gold has been proven and accepted as an alternative asset that investors are interested in and prefer as one of the main assets in their investment portfolios. Its distinctive features can be categorized as follows:

1. Gold is a safe-haven asset, especially during times of crisis

2. Gold has a relationship with other assets, making it useful for risk diversification

3. Gold has high liquidity and can be traded in markets worldwide

        In 2025, many analysts on Wall Street have a positive outlook on gold, viewing its price trajectory as bullish. Goldman Sachs has adjusted its gold price forecast for this year to $3,100 per ounce, while UBS Group has revised its prediction after gold surpassed $3,000 per ounce, suggesting that gold prices could reach $3,200 per ounce. The key factors influencing this outlook include global trade conflicts, continued gold purchases by central banks (expected to exceed 1,000 tons by the end of the year), and geopolitical tensions. These factors all contribute positively to gold prices.

As mentioned, gold is an attractive asset for investors worldwide, emphasizing the enduring appeal of this precious metal as an asset that should be included in investment portfolios for risk diversification, whether for retail or institutional investors. With technological advancements, investors can access and receive information about gold investments easily, conveniently, and quickly, while also being able to invest anytime, anywhere, thus creating opportunities for both short-term and long-term returns. Currently, gold has various investment formats, such as direct physical gold purchases, Gold Futures contracts, Gold ETFs (Exchange-Traded Funds), buying shares in gold mining companies, and purchasing Digital Gold, among others.

Global Gold Jewelry Consumption

When considering solely gold jewelry consumption, in 2024 it decreased to 1,877.10 tons from 2,110.58 tons, a reduction of 11.06%. This marks a year of weak purchasing demand for gold jewelry, as gold prices repeatedly reached record highs. These elevated prices caused consumers to delay purchases of gold in jewelry form. Among major consumers like India and China, which together account for 55.54% of global gold jewelry consumption, there were decreases of 2.15% and 23.95% respectively. Similarly, the 3rd and 5th ranked markets, the United States and Turkey, saw declines of 3.48% and 2.93% respectively.

Russia, the 4th ranked market, managed to grow by 3.84% due to the Russia-Ukraine conflict and Western sanctions, which led Russians to increasingly purchase gold as an alternative asset. Additionally, the government implemented a policy eliminating the previously imposed 20% value-added tax to support retail trade, resulting in strong domestic market growth.

China

Previously, China had consistently been the world's number one consumer of gold jewelry for an extended period. However, it began experiencing problems in the real estate sector that persisted and spread to other economic sectors, significantly slowing China's economic growth. Throughout 2024, China's gold jewelry consumption was 479.25 tons, down from 630.15 tons the previous year, marking the weakest year for China's gold jewelry consumption since 2021.

According to the World Gold Council report, declining consumer confidence amid slowing income growth and surging gold prices negatively impacted domestic demand for gold jewelry throughout 2024. Although demand increased in December before the recent New Year and Chinese New Year festivals, the future outlook remains negative as the Chinese economy continues to slow down. Consumers, especially teenagers, are turning to lower-weight gold pieces as alternatives, as well as platinum jewelry, silver, and other alternative materials such as titanium and resin in modern designs, due to their more affordable prices.

Given these trends, many retailers are focusing on developing products with higher added value by diversifying their collections and creating distinctive offerings to stand out from competitors. At the same time, modern designs that combine gold with other precious metals to create various colors, or those adorned with colored gemstones, blending traditional culture with modern innovation, are attracting new-generation consumers.

India

Although India's gold jewelry consumption contracted by 2.15% last year, following the same trend as other countries worldwide, it was the smallest contraction compared to other leading countries in gold jewelry consumption. India also became the world's largest consumer of gold jewelry, overtaking China to become number one with a volume of 563.38 tons. The Indian government reduced gold import taxes from 15% to just 6% as of July 24, 2024, the lowest rate since 2013, hoping to reduce tax-evading gold smuggling while also lowering costs for gold jewelry traders to build competitive advantage and stimulate domestic sales.

Most recently, the government has extended measures to reduce import taxes on tariff code 7113 for genuine jewelry (gold jewelry, silver jewelry, platinum jewelry, and other precious metal jewelry) from 25% to 20%, along with reducing platinum import taxes from 25% to 5%. These measures will help stimulate increased domestic demand, with implementation effective from February 2, 2025.

According to the World Gold Council, India's gold demand in 2025 is expected to decline from the previous year due to continuously rising gold prices. Consumers are delaying gold jewelry purchases, selling more old jewelry, and exchanging old gold for new jewelry with lower weight. Gold jewelry purchases are now primarily based on necessity, such as for weddings. Meanwhile, gold investment continues to grow steadily.

Meanwhile, this year's market trends show that choker necklaces with complex patterns made from traditional gold forms like Kundan are highly popular for weddings and festivals. Layered necklaces, combinations of traditional and modern designs, brightly colored jewelry, and minimalist designs suitable for everyday wear are becoming increasingly popular among the younger generation.

Thailand

Thailand has long been associated with gold since ancient times. Many exquisite gold artifacts with intricate patterns have been discovered, particularly gold jewelry from Sukhothai and Phetchaburi provinces, which are considered outstanding high art featuring ancient Thai artistic patterns carved into each piece. These used gold with high purity of 99.5% or 23K, different from today's gold jewelry which typically uses 96.5% purity gold, which has become a standard used throughout the country. Yaowarat Road, with its more than one hundred gold shops lining the street, is Thailand's most important gold trading area with a history spanning over 150 years, earning it the name "Street of Gold."

In 2024, Thailand ranked 10th in global gold consumption with a total volume of 48.79 tons, an increase of 13.01% from the previous year. Gold jewelry consumption was 8.99 tons, a decrease of 2.33%. This was largely affected by rising gold prices in the global market, prompting consumers to sell their old gold holdings for short-term profits. Additionally, the higher cost of purchasing gold jewelry has caused some consumers to shift their buying behavior toward lower-weight gold jewelry or lower purity gold such as 18K, especially among low to middle-income groups. Meanwhile, those who view jewelry as an investment continue to buy for both wearing and value accumulation simultaneously. Thailand's gold investment has increased continuously for several years, with a volume of 39.80 tons in 2024, up 17.16%.

Nevertheless, due to the long-standing culture and values of Thai people regarding gold, both gold jewelry and gold bars symbolize wealth, store value, and are passed down to future generations. According to the Department of Business Development, there are 9,728 registered gold shop operators throughout the country still in business, an increase of 303 from the previous year. 

According to an interview with Teeradej Sinthopruangchai, Secretary-General of the Gold Traders Association, the demand for both gold ornaments and investment gold bars has declined due to rising gold prices.

In the case of gold shops in provincial areas, purchasing behavior largely depends on agricultural consumers. When agricultural product prices are favorable, these consumers tend to buy gold for personal adornment, as it not only serves as an accessory but also as a store of value that can be easily liquidated for cash.

Meanwhile, online platforms have become a popular sales channel, particularly for lightweight gold jewelry with intricate designs. Consumers in this segment prioritize well-known and reputable brands. However, for gold jewelry weighing 1–2 baht or more, most buyers still prefer to make their purchases in physical stores. Design preferences vary across different generations. Generation X consumers favor durability and practicality for everyday wear, while Generation Z places greater emphasis on aesthetics, design, and brand reputation.

Furthermore, the craftsmanship and expertise of Thai goldsmiths have made 96.5% pure gold increasingly popular in neighboring markets. Consumers from Myanmar, Laos, and Cambodia are showing a growing preference for Thai gold as a means of wealth accumulation.

Mr. Tanarat Pasawongse, Chief Executive Officer of Hua Seng Heng Group, one of the country's major gold traders, stated that gold buyers are generally between 30-40 years old, but younger demographics are increasingly buying gold as savings. This group is influenced by financial advice from social media and online influencers, leading to the strong growth of gold trading applications and platforms. Creating safe transaction guidelines and providing additional education can attract more consumers.

Meanwhile, Ms. Worawan Tantachon, Managing Director of Shining Gold Jewelry Co., Ltd., commented that despite currently rising gold prices, there is still buying power from consumers. Consumer groups include working-age people with high purchasing power who prefer wearing jewelry in daily life, and investors who prefer gold bars. Online channels are becoming increasingly popular. In 2025, gold remains an attractive asset. The U.S. presidential transition is a key factor affecting trade policies and overall economic conditions, making gold an attractive investment that diversifies investment risk. 

Additionally, Asian cultures' continuing high preference for gold presents opportunities for gold to continue growing. Going forward, there are opportunities for gold to reach new highs, depending on factors such as wars and other conflicts, which require close monitoring of the situation.

Shining Gold

        The beauty of gold is not only reflected through the exquisite elegance of jewelry designs but also connected to its status as a safe-haven asset that investors commonly use to diversify investment risks. Gold typically provides better returns during economic downturns, geopolitical tensions, or changes in monetary policy such as interest rate reductions. The directional trend of gold prices this year continues to have upward momentum, which is beneficial for increased investment but may impact gold jewelry by reducing purchasing power. Entrepreneurs may focus on new lightweight formats with modern designs that are durable and suitable for everyday wear. The development of product innovations and creating added value through design and craftsmanship will help maintain competitiveness and achieve sustainable growth in the global gold jewelry industry.

Budhiphon Vichaidist

The Gem and Jewelry Institute of Thailand (Public Organization)

June 2025