The economy of the Kingdom Of Thailand is only second to Indonesia as at present in the membership of ASEAN. Thailand is seen as an upper-middle-income country. It operates an open economy, with its gross domestic product (GDP) amounting to 503.5 billion USD
The jewelry industry of Thailand has always been an economic pillar of the country.
Thailand is a country blessed with natural resources. It possesses the world’s largest natural reserve of silver and has been a significant supplier to various countries for about fifty years. In 2019, it produced 50,000 metric tons of silver. Not surprising, Thailand is the world’s largest supplier of silver, contributing 23% to the world market.
Also, the Department of International Trade Promotion for Thailand revealed that the value of exported silver from Thailand rose from 6.46 percent from the previous year. This value is amounted to be 371.30 million USD between January to March 202. This is due to the fact that there is increasing demand for Thai silver and an increase in sale quantity.
Gemstones, gold as well jewelry manufacturing materials number among its various exports. The Thai government, in recognition of the vitality of this industry, has made policies that favor it. The duty exemption from gold and some other jewelry material, for instance, means that gold coming into Thailand would do so at a low cost.
The jewelry industry of Thailand saw a surprise increase in the export of gold, gemstones, and jewelry-related materials. The rise in export rose astonishingly by 30% in the year 2019. The Gem and Jewelry Institute Of Thailand director, Duangkamol Jiambutr, estimated that the value of exports from January to July rose to 9 billion USD( equivalent to 280 billion baht). Gold exports, in particular, rose to over 70%.
The exports in gold and jewelry rose irrespective of the fact that the Thai Baht weighed on them. The rising of the baht currency had worked against the progress of most of Thailand’s exporting industry in recent times. This has led to a decrease in export recently weighed on most of Thailand’s exporting industries as a whole.
In the fast half of 2020, the Thai Commerce Ministry announced that exports of gold, gems, and jewelry increased 33.7% to 12. billion USD(Equivalent to 376 billion baht)
With the exclusion of volatile gold, shipments resulted in $2.57 billion. It also predicted an
In the first half of 2021, Thai silver jewelry exports rose from 6% to $371.30 million. It was majorly as a result of higher demand and says volume. Through the year, the number of exports of silver jewelry and accessories mainly driven by higher demand and sales volume, the DITP informed. The reasons for the recent soar in Thai gold and Silver exports are explored in this article.
WHY THAILANDS GOLD AND JEWELRY EXPORTS ARE SOARING
The Rising Of Market Price Of Gold And Precious Stones.
Generally, the rising in the market price of gold and precious metals saw an increase in the total value of gold and jewelry exports as a whole. Earlier in 2019, the price of gold rose to over 20 percent. JEWELRY EXPORTS
The Dread Of Recession
In addition to the increase in price, the rising fears of incoming recession due to rising tension among the United States of America, China, The European Union, and Iran, made investors lean towards gold as a bulwark or comparatively safe should other assets classes depreciate. JEWELRY EXPORTS
Growing Tensions Of The US—Chinese Trade War
The growing trade tensions between the United States Of America and the People’s Republic of China have caused American eyes to turn towardI’mThai gold. The Gem and Jewellery Institute Of Thailand director, Duangkamol Jiambutr, revealed that the imposition of tariffs on Chinese goods like jewelry by America was beneficial to Thai gem and jewelry exports as it paved the way for a big US market for Thailand. The value of Thailand’s baht saw an increase of 6% against the United States of America dollar. JEWELRY EXPORTS
In addition to the United States market, Thailand exports gold and jewelry to Switzerland, gaining 56% of total export value, just before Singapore and Cambodia. The Sino-Trade war has turned several eyes to Thailand, with several Japanese companies setting up bases in Thailand. JEWELRY EXPORTS
Thailand increased its jewelry exports to other Southeast Asian countries to about 108%About 82 of that percentage goes to Singapore. The increase in demand from India reached 91% Exports to India included mostly gold and semi-finished jewelry products. One of Thailand’s major export markets is India, which exported $ 143.97 million in Q1 this year. In addition to silver jewelry and accessories, it has been noted that the Indian market is the third-largest buyer of Thai gemstones. JEWELRY EXPORTS
Increase As A Result Of Online Fairs.
Following the Covid-19 pandemic and subsequent lockdown, the Thai Commerce Ministry had announced that the world-famous. BGJE jewelry fair that draws thousands of visitors to Bangkok, Thailand, would now be held online with over six hundred exhibitors in attendance virtually showcasing their gemstones, gold, and jewelry. This move has enabled Thailand’s gold, gemstones, and jewelry export to increase irrespective of the pandemic.
While the Covid-19 pandemic and subsequent lockdown took a toll on the gems and jewelry exports of Thailand, causing them to drop to 39.89 percent in 2020, The Kingdom of Thailand still remains relevant as the world’s largest export of silver and silver jewelry. It ranks third in the exportation of gemstones just after the United States and Hong Kong.
In the first months of 2021, the gemstone and jewelry exports of The Kingdom Of Thailand rose by 1.1 percent at the value of 53.76 billion baht (equivalent to 1,611,631,795.20 USD). These exports are expected to increase by at least five percent by the end of the year.
The BGJE jewelry fair was projected to hold between the 22nd Of June to 24th. The online fair was expected to have 450 online business matching. Revenues were estimated at 500 million baht. This digital switch has presented flexibility for Thailand’s gemstone and jewelry exports.