GOLD: THE FUTURE IS ASIAN

By MARISSA SALIM, Senior Research Lead, APAC, World Gold Council

For centuries, gold has captured imaginations and anchored economies. From coins exchanged in the marketplaces of ancient empires to bullion held in the vaults of modern central banks, gold has served as both a store of value and a symbol of enduring wealth. Its appeal has outlasted regimes, crises, and currencies and has been a source of wealth-building and preservation.

While gold’s legacy is global, its future is becoming distinctly regional. The epicentre of gold demand has been shifting to the East. Today, gold is increasingly an Asian story. Asia Pacific is home to some 4 billion people spanning large geographies from China to Australasia. Southeast Asia itself is home to some 700 million people. Despite the apparent diversity in culture and customs, gold is the thread that binds Asia.

Asia is home to the world’s largest gold consumers and some of its most dynamic, evolving gold markets. From household savers in Vietnam and China to the wedding season in India, Asia is at the forefront of shaping how gold is bought, held, and understood. What was once a commodity of kings and merchants has become a modern financial asset embedded in the fabric of Asian society.

Geopolitical Undercurrent Buoys Gold Performance in 2025

Gold reached several all-time highs in 2025 – with a peak all-time intra-day high at USD 3,500/oz – its momentum buoyed by the recent uncertainty surrounding US politics and trade wars between the US and the rest of the world.

According to World Gold Council data, Asia now accounts for roughly 70% of annual consumer gold demand. India and China alone represent over half of the world’s gold consumption and investment demand. While their appetite for gold is not new, it is rapidly modernising as access to the gold market improves, whether through retail or financial institutions.

Bar and coin investment for India has also picked up pace, growing 30% year-on-year, with demand second only to China.

In India, gold is a deeply ingrained cultural and religious asset. Beyond its role as adornment, it serves as a hedge against uncertainty, especially at the household level, with over 300 million households relying on it as a store of value. Rural households often use gold as a hedge against rising prices and income volatility, storing wealth in wearable form. In recent times, India’s relationship with gold has been evolving – digital gold savings platforms, jewellery hallmarking reforms, and efforts like the Sovereign Gold Bond (SGB) scheme are changing how Indians access and invest in gold. In 2024, demand for Indian jewellery reached 563 tonnes, trailing close to the 10-year average of 560 tonnes. Bar and coin investment for India has also picked up pace, growing 30% year-on-year, with demand second only to China.

Meanwhile, China has rapidly institutionalised its gold market. The Shanghai Gold Exchange (SGE), launched in 2002, is now the world’s largest physical bullion exchange. Chinese banks offer gold-linked savings products, and retail investment channels have expanded via fintech apps and mini-programmes. In February 2025, the Chinese government launched a pilot programme that allows insurers to buy gold for the first time. PICC Property & Casualty and China Life Insurance, two of China’s largest insurers, will be able to invest up to 1% of their assets into gold, potentially injecting as much as 200 billion yuan (US$28 billion) into the market.

But this is not just limited to a China and India story.

Across Southeast Asia, gold is also embedded in local economies:

In Indonesia, gold-backed shariah-compliant products are gaining traction, with gold accumulation programmes such as the Sukuk Saving Gold Program by Bank Syariah Indonesia (BSI) and the Pegadaian Tabungan Emas by Pegadaian.

In Thailand and Malaysia, household ownership of physical gold is high, often passed down through generations. Demand for bar and coin investment in Thailand and Malaysia increased by double digits year-on-year – about 20% from end-2023. Price-sensitive consumers across most ASEAN countries – as well as in China and India – have been shifting away from jewellery, opting instead for gold bars and coins as a form of investment.

Central Banks in the East are Buying

Gold is not just an Asian story; it is increasingly becoming a sovereign story too. Gold is also being steadily absorbed into official reserves – quietly and consistently.

Central bank appetite doubled since the start of the Russia-Ukraine war in 2022, as the freezing of USD-denominated assets led to a frenzy of central bankers building up their gold holdings as part of strategic reserve management.

The official sector, too, is leaning East. Over the past decade, emerging markets’ central banks have steadily increased their gold reserves. Central bank appetite doubled since the start of the Russia-Ukraine war in 2022, as the freezing of USD-denominated assets led to a frenzy of central bankers building up their gold holdings as part of strategic reserve management.

For example, China’s central bank resumed reporting gold purchases in late 2022 after a multi-year pause, and has since added over 300 tonnes to its reserves. India, Turkey, and Poland have also been active buyers since 2022, with Poland reporting net purchases of 90 tonnes in 2024 alone. While these purchases are relatively modest compared to total Western holdings, their symbolic weight is significant. In an era of shifting geopolitical alignments and questions about the future of the US dollar, many Asian nations are seeking to diversify their reserves. Gold provides an apolitical and liquid anchor that fits this need, signalling a strategic approach to reserve management.

The Geopolitical Undercurrent

Asia’s growing affinity for gold goes beyond cultural and historical roots – it is deeply strategic. This renewed interest is unfolding amidst sweeping structural shifts in the global economy and the tide of geopolitical uncertainty. As tensions between major powers mount and financial systems become increasingly politicised, global trust and reserve management boundaries are being redrawn.

One of the most consequential developments has been the weaponisation of currencies. From sanctions on central bank reserves to the growing use of financial infrastructure as geopolitical leverage, Asian countries are rethinking their exposure to Western economic systems. In this context, gold – an asset with no default risk, no issuer, and universal recognition – offers insulation. It serves not only as a store of value but also as a form of monetary sovereignty.

Central banks in the region are taking note. Countries like China, India, and Singapore have steadily increased their official gold holdings, while others, like Thailand and the Philippines, have made notable purchases in recent years. The motivation is clear: to hedge against external shocks and reduce dependency on reserve currencies like the US dollar.

Meanwhile, intra-Asia trade is accelerating, and with it, the development of regional financial infrastructure. This is fostering the growth of gold-related ecosystems, spanning refining, vaulting, lending, and trading.

In tandem, the rise of local payment systems and digital currencies, such as India’s Unified Payments Interface (UPI) and China’s digital yuan, could reflect a broader ambition. As these systems mature and interconnect, gold could emerge as a neutral reserve asset, bridging financial systems that are diverging in architecture and alignment. In this evolving landscape, gold is no longer just a safe-haven – it is a strategic asset in a shifting global financial landscape where Asia plays a larger role. It offers protection against currency risk, stability during crises, and could become a key component of a more diversified monetary system.

MARISSA SALIM joined the World Gold Council in 2024 and works in the Research team as senior research lead, APAC. She previously held position with Preqin where she led the development and implementation of research initiatives for private market investments for the APAC region. Previously, she worked for Thomson Reuters and Mizuho Financial Group.

Marissa has a Bachelor’s degree in Economics from the National University of Singapore.