New Financial Horizons for 2025:
How gold fosters economic growth and prosperity for all Thais
The role of gold in enabling financial inclusion in Thailand
By Andrew Naylor
Head of Middle East and Public Policy, World Gold Council
As we move into 2025, gold offers a unique opportunity to provide stability amidst geopolitical uncertainties. Traditionally, gold is a symbol of prosperity and wealth in Thai culture, often used to celebrate major family milestones such as weddings, birthdays, and the arrival of newborns. As society evolves, gold remains deeply ingrained in Thai life, fuelling resilient consumer demand market that recorded the highest growth among ASEAN countries for two consecutive quarters in 2024.
Gold can also boost a country’s financial inclusion, which has become a major policy objective for governments, NGOs and international organisations across the world. Financial inclusion is often defined as allowing people to access savings products, credit, insurance, and payments systems, all which are keys for economic growth. When individuals and households are financially secure, they are more likely to invest or start businesses, further supporting economic development.
Financial inclusion in Thailand
The latest World Bank Global Fidex Report from 2021 said average bank account penetration rate in emerging markets was 71%, while 77% globally have access to a bank account. This is a significant improvement on the 51% that had access to banking services in 2011. Thailand has consistently excelled in this area with 82% of Thais having bank accounts since 2017. By 2021, the number had risen to 95.6%, with 67.1% having savings and 92% making digital payments — well above the APEC averages of 82.1%, 61.4%, and 78.1%, respectively.
Whilst access to bank accounts is high, there are still opportunities to broaden the range of financial services that are offered. Access to credit services remains low at 30.4%, below the APEC average of 38.2%, due to limited understanding of credit products and fear of rejection. In 2024, informal lending surged to 30%, raising concerns as borrowers often face interest rates exceeding the legal limit of 15%.
Financial inclusion – building steam though innovations
Across the world there is a rapid embrace of initiatives assisting the drive for financial inclusion. Part of this is innovative financial products. In many markets including China, Singapore, UAE, and Malaysia retail banks are offering gold investment accounts. Turkish retail banks now also offer buy-back schemes, gold bonds, and gold cheques, amongst others.
The Thai government has shown a forward-thinking approach to digitalising gold by allowing gold bullion traders to offer gold online saving and trading in ‘Pao Tang’ mobile application through Krungthai Bank, allowing real-time trading of 99.99% gold at global market prices. This initiative enables more Thais to participate in gold trading and modernising the gold market. By Q1 2023, the value of gold savings online rose by 60-70% y/y, with YLG Bullion International reported 70% growth in new trading accounts on the Pao Tang app. Apps such as these demonstrate how the retail banking sector can complement the services provided by traditional bullion dealers, through a network effect and an expansion of access to gold.
Can gold break down the barriers to financial inclusion?
Where financial access is low, gold can fill the gap, particularly with under-served rural populations. Gold has helped rural Thais who traditionally use pawnshops to access credit to cover the cost of agricultural activities and unexpected needs. In 2023, Thailand’s Office of Government Pawnshops (OGP) reported that loans totalled over 20 billion baht, with gold accounting for as much as 88% of the 1.1 million pawned items.
Gold also serves as a vital safety net for Thais. During the pandemic outbreak in 2020, the gold bullion market recorded net sales of 81.5 tonnes, as households sold their gold holdings to secure much-needed financial relief.
Gold meets both financial and cultural needs, serving as a long-term store of value, an asset that is easy to buy and sell, and a protection against uncertainty. It can also directly and indirectly help governments achieve public policy objectives of maximising financial inclusion.
Meeting the objectives of financial inclusion
| Financial inclusion parameter | Role of gold |
| Access to savings products | Long-term store of value, protecting wealth. Easily bought and sold. |
| Access to credit | Used as collateral for micro or enterprise lending. |
| Access to payment systems | Used for P2P payments particularly in digital form. |
| Access to insurance | A strategic component of investment portfolios and can help maximise risk-adjusted returns including for pension and insurance funds.
At an individual level, gold has been used to meet unexpected financial needs. |
Strengthening the banking system
In our global retail market insights research, 61% of consumers across the countries we studied trust gold more than currencies. 65% believe gold will never lose its value over the long term, and 67% view gold as being a good safeguard against inflation and currency fluctuations. By offering gold products retail banks could expand their appeal and help strengthen the bank-to-consumer relationship. Central banks have long recognised gold as key to strengthening proprietary balance sheets, further enhancing the attractiveness of the banking system.
Driving financial inclusion and resilience in 2025
Gold’s enduring appeal and notable returns are particularly prominent around the New Year. Data from 1971- 2023 showed an average return of 1.79% in January alone — almost three times of Gold long-term monthly average.
As we begin 2025, a year anticipated to be marked by uncertainties, gold can offer governments and individuals a financial tool that not only provides security and delivers potential returns but also contributing to a more resilient and inclusive economy for all Thais.
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For further information please contact:
Maetavarin Maneekulpan, TQPR Thailand, T:02 260 5820 E: mae@tqpr.com
World Gold Council
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