Gold Investment Trends in Singapore

Singaporeans' investment in gold witnessed a significant 37% increase, although it fell short of the first quarter's historic high of 2.5 tonnes, as reported by the World Gold Council.

Southeast Asia's Gold Investment Landscape

In Southeast Asia, the second quarter saw a rise in gold investment in Indonesia, Malaysia, and Thailand, with double-digit year-on-year growth. Conversely, Vietnam experienced a 20% decline.

A person shows a box of gold bars in Singapore in 2020. Photo by AFP

Global Gold Jewelry Demand Declines

Gold jewelry demand in Singapore dropped by 8% to 1.5 tonnes, attributed to record-high gold prices limiting purchasing power. This trend mirrored a global decline in jewelry consumption to pandemic-era levels, according to The Straits Times.

Worldwide Gold Investment Growth

Globally, bar and coin investment grew by 11%, reaching 306.8 tonnes. Chinese investors led with 115 tonnes, followed by India at 46 tonnes. European net investment surged to 28 tonnes, doubling from the previous year, while U.S. demand halved to 9 tonnes in Q2.

Future Outlook for Gold Investment

The World Gold Council anticipates that geopolitical tensions, market volatility, and macroeconomic uncertainty will continue to fuel investment demand in gold. Additionally, the U.S. dollar's performance is expected to influence institutional investment decisions in the latter half of the year, with a consensus leaning towards a structurally weaker dollar in the medium term.