Gold demand in Vietnam slid 5.0% to 15 tons in the third quarter of this year.
The country’s total bar and coin demand dropped 13% year-on-year but increased 6.5% quarter-on-quarter to 11.5 tons in Q3/2015, according to a report of the World Gold Council (WGC).
The fall in Vietnamese demand for gold bars and coins “may on the face of it seem surprising: the price dip offered an attractive buying opportunity and the premium on Saigon Jewelry Company gold tael bars was halved (from $200/oz to $100/oz).
However, Vietnamese consumers continue to use 24K gold chi rings as a quasi-investment vehicle and this was reflected in the strong growth in demand for these products in the jewelry sector,” said the report.
The country’s gold jewelry consumption jumped 31% year-on-year to 3.5 tons, the highest growth rate in Asia, excluding the Middle East. The double-digit rise in jewelry demand in Vietnam was assisted by the falling price, confirmation of accelerating economic growth and a relatively benign inflation, the WGC said.
Global gold demand climbed 8% to 1,120.9 tons, above a five-year average of 1,106.1 tons, as bar and coin demand drove gains.