Page 14 - Bullion world volume 4 issue 6 june 2024

Bullion World | Volume 4 | Issue 6 | June 2024

Building Trust and Transparency:

How the World Gold Council is

Transforming Gold Investment in ASEAN

Mr Shaokai Fan, Head of Asia Pacific (ex-China)
& Global Head of Central Banks, World Gold Council

Gold has long been revered as a secure investment,
a hedge against inflation, and a symbol of wealth
and stability. In recent years, influenced by economic
uncertainties and global structural changes, the
World Gold Council has observed a dynamic shift in
gold consumption patterns within the ASEAN market,
underscoring the growing importance of this precious
metal in the region. As detailed in World Gold Council’s
Q1 2024 Gold Demand Trends report, global gold
demand reached its highest first-quarter level since
2016. This uptick is driven primarily by significant
purchases from central banks, alongside increased
consumer demand in the ASEAN region.

In Singapore, the Monetary Authority of Singapore
(MAS) added 2 tons to its gold reserves, potentially
reflecting a strategic move amidst macroeconomic
volatility. Other notable buyers in Asia included the
Reserve Bank of India, the National Bank of Kazakhstan,
and central banks from Oman and the Kyrgyz Republic.
Consumer demand for gold in Singapore also surged by
20% year-on-year to 4 tons, with bar and coin demand
increasing by 29% and jewellery consumption up by Mr Shaokai Fan
14%. Other notable buyers in Asia included the Reserve
Bank of India, the National Bank of Kazakhstan, and
central banks from Oman and the Kyrgyz Republic. Gold
ETFs in the region saw a 16% increase in total assets
under management, reaching US$11 billion, indicating
a healthy appetite for gold investments amid financial
uncertainties.

The trend towards gold as a safe-haven asset is
particularly pronounced among younger investors in the
ASEAN region who are facing inflation and economic
instability for the first time. It makes sense for younger In response to these evolving market dynamics, World
investors to explore assets that perform well during Gold Council has implemented several strategic
periods of uncertainty like gold as a way to diversify and initiatives to increase consumer confidence in gold and
protect their assets. We have observed this trend in elevate its perception in the ASEAN market. These
China, Japan, and other countries, and it may become initiatives focus on building trust and transparency,
a more widespread phenomenon if the economic reducing barriers to access, and establishing Southeast
conditions become less certain in other markets. Asia as a leading global hub for gold.

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