Singapore’s investment in gold bars and coins surged by 37% year-on-year, reaching 2.2 tonnes in the second quarter. Although this figure falls short of the record high of 2.5 tonnes observed in the first quarter, the World Gold Council indicates a strong upward trend in gold investments. Meanwhile, in Southeast Asia, gold investment also flourished, with notable double-digit growth reported in Indonesia, Malaysia, and Thailand. In contrast, Vietnam saw a 20% decline in gold investment, a discrepancy that raises eyebrows.
On the jewelry front, Singaporeans are growing cautious. Gold jewelry demand fell by 8%, totaling 1.5 tonnes, largely influenced by soaring gold prices that restricted consumer purchasing power. This trend mirrors a broader global decline in jewelry consumption, which has dropped to levels reminiscent of the pandemic.
Globally, investment in gold bars and coins witnessed an 11% uptick, amounting to 306.8 tonnes. Chinese investors led the charge with 115 tonnes, complemented by Indian investors contributing 46 tonnes. Interestingly, European net investment doubled to 28 tonnes, while the U.S. found itself on a different trajectory—demand for gold bars and coins plummeted by half to just 9 tonnes in the second quarter.
Looking ahead, the World Gold Council cites geopolitical tensions, market volatility, and macroeconomic uncertainty as factors that will continue to fuel investment demand for gold. It also notes that the performance of the U.S. dollar will be crucial for institutional investors moving into the second half of the year. With many analysts predicting a structurally weaker dollar, the stage is set for intriguing shifts in the gold market.
What percentage increase did Singapore experience in gold investment in the second quarter?
Singapore’s gold investment rose by 37% year-on-year in the second quarter, totaling 2.2 tonnes.
How did the demand for gold jewelry in Singapore change recently?
Gold jewelry demand in Singapore declined by 8%, reaching 1.5 tonnes, largely due to record-high gold prices.
Which regions showed notable growth in gold investment during the second quarter?
In Southeast Asia, gold investments increased significantly in Indonesia, Malaysia, and Thailand, all reporting double-digit growth compared to the previous year.
