Asia’s love for gold persists and tends to grow in the future

Asian countries are voracious consumers of the yellow metal. Last year Indians were the world’s biggest buyers of gold jewellery, their combined purchases of 560 tonnes outpacing even China’s 510 tonnes. Indians also bought 240 tonnes of gold bars and coins, and Chinese a whopping 345 tonnes. In Thailand, demand for bullion jumped 17% in 2024 to 40 tonnes, owing to the growing popularity of apps that sell physical gold online.

Add in other major markets such as Indonesia and Vietnam, and Asia accounted for 64.5% of global demand for gold jewellery and bullion last year, not including central-bank purchases. America bought just 6.5%.Asia’s love of gold is partly to do with its role in important life events, especially weddings. Kalyan Jewellers, a big retailer, estimates that “India is a market of approximately 10m marriages annually, and this market alone is estimated to cater to 300 to 400 tonnes of gold.” Many Hindus also buy gold on auspicious days, such as during the festive season that culminates with Diwali in the autumn, or on Akshaya Tritiya, a spring festival which this year falls on April 30th.

According to the World Gold Council, a trade association, Indians are still buying “need-based” gold jewellery, such as for weddings and other occasions. They are taking advantage of high prices to embrace offers such as Tanishq’s. And loans against gold are soaring, too.