Gold buying frenzy grips Vietnam and Thailand as economic fears mount

“If you don’t have much money in life, and all the goods that you buy and sell are ultimately priced in US dollars, and your local currency is going down, that doesn’t feel good. You have got inflation working against you, plus you’ve got currency depreciation. You are getting hit twice.”

Southeast Asia’s rush for gold has pushed prices up over the last six to 12 months, said Langford, who is executive director of corporate consultancy Airguide International.

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Chinese consumers sell off old jewellery amid record high gold prices

Gold prices have soared to new heights this year, peaking at an all-time high of US$2,450 an ounce in May.

In China too, waning confidence in property and stock markets has seen investors chase gold as a safe haven.

Anxiety over economic turmoil, geopolitical insecurity and currency devaluations is fuelling a flight to gold, a traditional safe-haven investment.

Currency depreciation bites hardest for small-time investors, eroding their savings and inflating costs.

And it’s not just these everyday investors who are seeking a safe haven – central banks are also buying gold at a “blistering rate”, according to the World Gold Council.

More than 80 per cent of central banks expect their reserve managers to increase their gold holdings over the next 12 months, a survey published by the council on June 18 revealed – stockpiling the precious metal as a bulwark against heightened geopolitical risks and mounting macroeconomic uncertainties.

“Extraordinary market pressure, unprecedented economic uncertainty and political upheavals around the world have kept gold front of mind for central banks,” said Shaokai Fan, the council’s central banks and Asia-Pacific head.

“What has been remarkable is that despite record