Amid global challenges, ‘Thai gold market needs more innovation, earn trust’

They were speaking at a panel discussion titled "Promoting market integrity and global gold market innovations" on Thursday, as part of the first Thailand Gold Forum 2023.

Chirag Sheth, principal consultant for South Asia, Metals Focus; Albert Zhang, CEO Singapore Bullion Market Association; Navin D'Souza, CEO of Comtech Gold; Gregor Gregersen, CEO and founder of Silver Bullion; and Pitipong Tiasuwan, managing director (Omnichannel Retailing), Pranda Jewellery, were among the panellists.

The event was held at a time when the global gold industry faces challenges, such as economic slowdown, persistently high inflation, geopolitical tensions, and a recession, all of which have an impact on the demand for gold.

The panelists agreed that gold remains a precious metal worth purchasing, either for investment or as a gift for a loved one.

However, they pointed out that in order to increase sales in a stagnant market, gold entrepreneurs should consider utilising innovations and technology to strengthen market credibility, integrity and accessibility.

D’Souza used the example of Digital Gold.

“Tokenising” gold, he explained, is the process of creating a blockchain token that represents a specific quantity of gold. Tokenised gold makes use of blockchain technology and could be purchased and sold through banking or exchange channels.

The new forms of gold products provided more opportunities for sales growth, he noted.

Gregersen suggested implementing innovations to increase transparency and traceability in the retail gold market.

He said that current technology allowed gold buyers to track their precious metals, while gold sellers could use smart tools and big data to prove their transparency.

Pitipong discussed the use of digital marketing to expand into new markets.

He advised brand owners to think about using social media and new market tools to build their brand among the younger generation, who would be their new customers in the near future.

Cheng suggested that Thailand develop measures and regulations to promote responsible retailing and consumer protection.

He cited as an example the Singapore Bullion Market Association's retail market code of conduct.

Having a serious code of conduct helps increase the country's credibility in the global market, he said.

Sheth said that the Asean gold market, including Thailand, was still experiencing promising growth. So, it would be beneficial to expand the market by making gold more accessible to more people.

Thailand's gold potential
Pawan Nawawattanasub, chief executive officer of YLG Bullion International, Thailand's leading gold brand, said that the domestic gold market had consistently developed with the cooperation of industry participants. It is now regarded as a critical component in the evolution of the gold market from the past to the present.

"Gold is regarded as a vital asset in which people all over the world are interested and place a high value. Previously, gold trading was restricted to a small number of participants, including central banks from various countries that kept gold as reserve, the gems and jewellery industry, and the electronic components industry," she said.

She added that the functions of gold were now more diverse than ever before, as it was viewed as another investment asset.

This enabled the production of a variety of gold products designed to meet the changing needs of the consumer. This has caused the Thai gold market to expand in terms of demand as well as export value, which benefited the national economy both directly and indirectly.

According to the Gold Traders Association, Thailand is the third biggest consumer of gold in Asia, trailing only China and India, and it has been the seventh highest consumer in the world for the past 10 years.

"Thais rarely wear gold as jewellery, but they are increasingly turning to online buying and selling of gold for investment. As a result, the domestic gold market is expected to expand further," Pawan said.

Thailand Gold Forum 2023 is the country's first global level gold conference, organised by three of the industry’s key pillars — the Gems and Jewellery Institute of Thailand, the Gold Traders Association, and the World Gold Council.

The purpose of the forum was to promote cooperation and help advance the gold trading industry in Thailand and around the world, as well as to elevate Thailand to one of the regional and global gold trading centres.