Vietnam’s gold demand way down in 2014

19-Feb-2015 Intellasia | Resource Investor | 6:00 AM Print This Post

The recent report published by the World Gold Council (WGC) says that Vietnam’s gold demand tumbled during 2014. Despite marginal rise in jewellery consumption, the overall gold demand by the country fell 29 percent during the year.

The yearly gold consumption by the country during last year totalled 69.1 metric tonnes when compared with the consumption of 97 metric tonnes during 2013. Out of this, gold for jewellery accounted for 12.7 tonnes, accounting for nearly one-fifth of the total gold consumption by the country during the year. The jewellery gold demand has increased by 4 percent over the previous year. In terms of value, the 2014 gold demand by Vietnam dropped 36 percent to nearly $2.9 billion, WGC noted. However, Vietnam along with India was ‘outperformer’ in the Asian region where jewellery demand mostly remained weak.

On the other hand, the country’s gold bar consumption demand totalled 56.4 tonnes in 2014, dropping by almost one-third when compared with the previous year. The shortage of gold bars spiked up the local premiums to record high levels during the year. The official gold price in Vietnam often remained higher than global gold price. On certain occasions, the gap even doubled.

The country’s gold consumption has exceeded 50 metric tonnes during the past several years. The fact that the country’s central bank did not produce or procure more gold during 2014 suggests chances of gold being smuggled into the country during the year.

The WGC report also states that the global gold demand totalled 3,923.7 tonnes in 2014. Worldwide jewellery demand fell 10 percent to 2,152.9 tonnes. Investment demand rose 2 percent, whereas central bank purchases totalled 477.2 tonnes very much close 50-year highs. The record mine gold supply was offset by sharp decline in volumes of recycled gold supply.


Category: Finance, Vietnam

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