Domestic gold demand suffers sharp downturn
Domestic gold demand suffers sharp downturn
Viet Nam's demand for gold declined sharply quarter-on-quarter by 27 per cent in volume and 29 per cent in value in the third quarter of 2014.
According to the World Gold Council (WGC)'s latest global gold consumption report, the country's registered gold consumption in the third quarter reached 19 tonnes worth US$783 million. Of the total, gold jewellery accounted for two tonnes worth $82 million, a nine-per cent decline, while gold bars and coins made up 17 tonnes worth $701 million, a 29-per cent decline.
The report also showed that as of September, Viet Nam consumed 79.3 tonnes of gold worth $3.275 billion, a 19-per cent decrease in volume and 30-per cent decrease in value.
The WGC ranked Viet Nam as the world's seventh largest gold consumer last year, with 92.2 tonnes worth $4.16 billion, a 20-per cent year-on-year increase.
This year, Viet Nam is witnessing a decline in demand for gold as decelerating inflation and more attractive opportunities in stocks, property and bank deposits have driven interest away from it. Industry insiders said this trend was new to Viet Nam.
Previously, when the economy was unstable and inflation was high, people only trusted gold. Now people are seeking investments in stocks and property, and simply depositing money in banks could give them good returns, so demand for gold had dropped sharply.
The report also showed that world gold demand in the third quarter reached 929.3 tonnes, a four-per cent quarter-on-quarter decline. Demand for gold jewellery accounted for 534.2 tonnes of the total.
India and China remained the world's top gold consumers in the quarter, with 225.1 and 182.7 tonnes, respectively.
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