BANGKOK, Thailand – Thailand’s gold trade association expects Lunar New Year sales to drop by approximately 10% this year, as record-high prices weaken consumer purchasing power.
Jitti Tangsithpakdee, President of the Gold Traders Association, stated that the festive trading atmosphere is significantly quieter than in previous decades. On Feb 16, domestic gold bars were quoted at 73,700 baht per baht-weight ($2,140 approx.), while gold jewelry reached 74,500 baht.
“The sharp price increase has led to a visible decline in jewelry sales,” Jitti said. “Consumers are shifting toward bullion for gifts but in much smaller quantities. We no longer see the midnight queues typical of 10 or 20 years ago.”
The association noted a shift in gifting traditions, with many families opting for cash over gold for “Ang Pao” (red envelopes). To adapt to the high prices, shoppers are increasingly purchasing micro-gold products, such as 0.3-gram pieces, instead of the traditional 1-gram or larger denominations.
Jitti warned that this slowdown in spending is likely to persist through the upcoming Songkran festival in April as high volatility continues to weigh on the market. -819 (TNA)
