Digital Gold Trading in Thailand: A New Era of Opportunities
World Gold Council CEO David Tait Aims to Transform Trading in Thailand through Cutting-Edge Innovations that Position Gold as a Mainstream Digital Asset
Thailand’s gold demand continues to soar despite a series of record-breaking prices, with the Thai gold baht weight reaching a new high of 42,000 THB on 19 April 2024. The nation recorded the highest growth in consumer demand across Southeast Asia for Q2 2024, with a remarkable 20% y/y surge to 9 tonnes, as Thai investors turned to gold for protection against the weakened local currency. This sustained robust demand underscores gold’s status as a reliable and preferred investment instrument in Thailand.
The World Gold Council (WGC) believes the Thai market could see further growth with the digitalisation and standardisation of gold. According to WGC CEO David Tait, current barriers in accessibility, transparency, and efficiency continue to obstruct gold trading’s integration into modern financial systems.
World Gold Council’s Vision of “Gold247”
WGC’s Gold247™ gold vision aims to transform gold trading by enhancing efficiency, transparency, and integrity in Thailand and worldwide. Since assuming his position at the WGC in November 2018, Mr Tait has advocated for digitalisation in both retail and wholesale transactions. “Our objective with Gold247 is to modernise the gold market and bring it into the 21st century, where gold can be traded with the same ease as other financial assets,” stated Mr Tait.
The Gold247 initiative is built on three pillars: integrity, accessibility, and fungibility, aiming to make gold as dynamic and accessible as other financial assets.
Integrity and Trust
The essential foundation of Gold247 is the integrity of the gold supply chain. The World Gold Council partnered with the London Bullion Market Association (LBMA) to pilot the Gold Bar Integrity Programme, which uses distributed ledger (commonly referred to as blockchain) technology to develop and implement a secure, confidential, digital supply chain solution. This programme aims to enhance the integrity of gold bars and improve transparency in over-the-counter gold markets.
Since the successful launch of the pilot, major players from across the gold value chain have been signing up to the Gold Bar Integrity gold ecosystem, advancing the industry wide initiative to enhance transparency from mine to market. Last September, all 31 WGC members committed to joining the platform and adding core provenance data, with significant progress already made—eleven members have been onboarded, with more to follow.
Earlier this year, the LBMA also announced that aXedras would provide the DLT database for their members and serve as a cornerstone for accurate and timely data flow, ensuring refiners and LBMA members have access to a secure and efficient database to securely share information with LBMA.
“The ability to track gold bars throughout the supply chain will ensure responsible gold sourcing and product integrity which will improve trust in the asset class. In an era where transparency is expected, this will help ensure investors and market participants have further confidence that their gold is authentic and has been responsibly produced and sourced. We are thrilled to see more players in the gold industry sign up to the GBI ecosystem with more on the way,” Mr Tait said.
Accessibility: Breaking Barriers of Gold Trading, Anywhere, Anytime
A key aspect of the Gold247 initiative is improving accessibility through digital transformation, creating a unified global standard for gold to be traded across markets and making gold become as readily available as stocks or currencies, 24/7.
Mr Tait noted that this is particularly relevant for Thailand: “We are thrilled by the pace of digital investment initiatives in Thailand, such as those from the Bank of Thailand (BOT), which is testing a retail Central Bank Digital Currency (CBDC). This direction aligns with our goal of facilitating digitalisation. It will increase accessibility, which could enhance interest in gold among the new generations of Thai investors, increasing inflows into Gold ETFs, and accelerating demand for other gold financial products in Thailand.”
Fungibility: Standardising Gold
Mr Tait observed that the fragmented global gold market prevents gold from being easily tradable. Making it easier and more cost-effective to trade will allow many more investors to access this asset and thereby fuel long-term demand. While gold markets today interact with each other, they all have different standards: Bar sizes are different, grades are different, trading modes are different.
The WGC is currently working with other industry leaders to create a standard digital gold unit, which would represent, in digital form, all gold bars in the digital ecosystem. These tokens, or ‘digital twins’, would be standardised across jurisdictions, creating a level, transparent and truly global gold market.
This would enhance demand, facilitate trade and allow gold to be used in ways that have previously been closed to it in both the investment and banking sectors. “Our goal is to establish a digital unit that allows all different, shapes, sizes and purities of gold to be represented globally in a standard fashion.” Mr Tait added.
The Future of Digital Gold Trading in Thailand
He also sees significant opportunities for the Thai gold market through incorporating these innovations. WGC believes initiatives such as Gold247 is setting the stage for a future where gold could be a key component of the Thai digital economy.
“The initiative envisions a future where gold retains its cultural significance, while propelling the Thai gold market into a larger regional role. This aligns with the country’s ‘IGNITE THAILAND’ vision of becoming a leading ASEAN financial and digital economy hub.
“Our goal is to ensure that gold continues to increase its role in portfolio allocations and integrates into modern finance as a mainstream asset in Thailand,” Mr Tait concluded.
– END –
For further information please contact:
Maetavarin Maneekulpan, TQPR Thailand, T: 02 260 5820 E: mae@tqpr.com
Note to editors
World Gold Council
We are a membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.
You can follow the World Gold Council on X (Twitter) at @goldcouncil and LinkedIn