WGC: Demand for gold jewelry in Vietnam is at a record high

The above data was announced by the World Gold Council (WGC) in its first quarter gold demand report. “The value of jewelry consumption in Vietnam reached a new peak, while this activity in many Southeast Asian countries remained quiet,” the WGC report stated.

According to WGC’s assessment, this trend is due to rising prices, promoting a shift to jewelry products with lower gold content and investment purposes. In addition, the scarce supply of gold bars is also an impact factor, making Vietnam the country with the largest reduction in consumption of this item in the region, at 24%, down to 9 tons.

As of March 31, Saigon Jewelry Company (SJC) sold plain gold at 172 million VND per tael, an increase of more than 12% compared to the beginning of the year. On March 2, this item was traded at a record level, over 189 million VND per tael.

Globally, gold jewelry demand in the first quarter decreased by 23% over the same period last year to 300 tons. This development occurred in most key markets, including: China (down 32%), India (down 19%) and the Middle East (down 23%). However, the trading value of this item still increased, showing that consumers are still willing to trade at high prices.

WGC data shows that total global gold demand in the first quarter reached 1,231 tons, up 2% over the same period last year. Although trading volume improved slightly, the total demand value jumped to a record of 193 billion USD, corresponding to an increase of 74% over the same period last year.

WGC said individual investors are attracted by the rising price momentum and appeal of gold as a safe haven asset. This group collected a total of 474 tons, a 42% improvement in volume over the same period.

In China, individual investors bought the highest amount of gold bars ever, about 207 tons. Indian, Korean, Japanese, American or European markets also recorded an increase in demand for this precious metal.

Central banks also continued to support aggregate demand, with net purchases reaching 244 tons. This figure exceeds the average of the last five years, although some organizations increased selling, including Türkiye, Russia and the Azerbaijan State Oil Fund.

Mr. Shaokai Fan, Head of Global Central Banking at WGC, said geopolitical tensions will continue to drive gold demand in 2026 and beyond. This supports the net buying trend of central banks, capital flows into gold ETFs as well as storage demand. “High prices may continue to affect gold jewelry demand, although purchasing power of this segment is expected to remain stable,” Mr. Shaokai Fan said.

Sharing the same opinion, Ms. Louise Street, senior market analyst at WGC, assessed that geopolitical risks will boost gold investment demand. However, a prolonged high interest rate environment could create barriers, especially in Western markets. In terms of supply, mining output is expected to increase slightly, but the risk of energy shortage may limit this prospect.