Surge in gold export makes up for overall slump in demand for gems and jewellery

By The Nation

 

Sumed Prasongpongchai, deputy director of the Gem and Jewellery Institute of Thailand (Public Organisation)

 

Thai export of gems and jewellery in the first seven months of this year rose 33.73 per cent compared to last year, bouyed by the demand for gold, Sumed Prasongpongchai, deputy director of the Gem and Jewellery Institute of Thailand (Public Organisation), said.

 

 

The export accounted for US$12.069 billion, or 9.06 per cent, of the country's total exports.

 

However, excluding gold, the export of gems and jewellery during the period dropped 41.87 per cent to $2.576 billion.

 

Gold export in the period skyrocketed 106.72 per cent to $9.492 billion, accounting for 78.65 per cent of the total gems and jewellery exports. During the period the global demand for gold surged, as people rushed to seek the safe-haven asset during the economic crisis.

 

Export of silver and gold ornaments dropped 8.29 per cent and 45.18 per cent, respectively.

He added that worries of a second wave of the Covid-19 outbreak and the strengthening baht remain risk factors for gems and jewellery exports.

 

Source: https://www.nationthailand.com/business/30394073

 

-- © Copyright The Nation Thailand 2020-09-06

 

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Apparently, most everyone is worried about “the strengthening Baht”.  Except, of course, the government.

Why is this good? Thais are selling their gold now as many need the money to survive. I can't see how this is a good sign.

1 minute ago, Gold Star said:

Why is this good? Thais are selling their gold now as many need the money to survive. I can't see how this is a good sign.

Generally in the world there's a saying " selling the family silver".... in Thailand it's gold.

Gold price increased $1200 to $1800 or so an ounce since beginning of year.  My math says to expect an increase of sales by about (1200/1800) fifty percent. Same number of ounces but they sell for 50% more each.

8 hours ago, Gold Star said:

Why is this good? Thais are selling their gold now as many need the money to survive. I can't see how this is a good sign.

Would you suggest Thai's eat their gold?  They need cash.  Gold is the first thing to be liquidated.  

i am not quite sure i understood.

why would people who want to invest in gold will buy gold jewelries?

the work on the jewelry will only make the gold more expensive.

 

and how come gold jewelries rose only 47% in monetary terms, when the gold price rose more than

50%? to see the real change in gold jewelries export, need to count the gold weight.