At the World Gold Council (WGC) press conference held on the morning of February 2, 2026, Mr. Shaokai Fan emphasized that in a world undergoing profound disruptions and structural shifts, gold is not merely a tool for profit-seeking, but more importantly a strategic asset that brings balance and stability to investment portfolios.
Mr. Shaokai Fan — Head of Asia-Pacific (excluding China) and Global Head of Central Banks at the World Gold Council — highlighted that 2025 was truly a volatile and fascinating year for the gold market, especially given the extraordinary developments in the final weeks of the year and the opening weeks of 2026.
Unprecedented Records in the 2025 Gold Market
According to Mr. Fan, 2025 was a year that shattered records across multiple dimensions. For the first time in history, total global gold demand surpassed 5,000 tonnes in a single year. In value terms, the market reached an all-time high of USD 555 billion, representing a remarkable 45% year-on-year increase. This surge in demand drove gold prices up nearly 70% over the year, repeatedly setting new record highs.
The primary force behind the market’s momentum was investment demand, encompassing both exchange-traded funds (ETFs) and physical gold. Global gold holdings in ETFs climbed to a record 4,025 tonnes, with inflows totaling USD 89 billion. Mr. Fan noted that ETF inflows were strong worldwide, but particularly pronounced in North America and the United States, where investors returned decisively after a prolonged period on the sidelines. In addition, two major Asian markets — China and India — recorded significant growth, supported by the launch of a broader range of gold-related financial products.
Alongside ETFs, demand for gold bars and coins also surged, especially in the fourth quarter of 2025, when consumption reached 420 tonnes — the highest level in 12 years. For the full year, this segment grew by 33%. China and India continued to dominate as the two largest consumer markets, accounting for roughly half of global demand, while rising interest in gold bars was also observed across many other countries.
In contrast to the vibrancy of investment demand, the jewelry market faced substantial pressure from persistently high gold prices. Total jewelry consumption fell to a five-year low of 1,542 tonnes. Paradoxically, despite the decline in volume, total spending on jewelry increased compared to the previous year. This indicates that underlying demand for jewelry remains strong, but consumers have adjusted their purchasing behavior by opting for lighter pieces or products with lower gold content to stay within budget.
Vietnam — An Exception Within the ASEAN Landscape
In Southeast Asia, Mr. Fan described ASEAN as a bright spot for gold demand, with Vietnam standing out as an exception due to divergent trends. In the fourth quarter of 2025, investment demand for gold bars and coins in Vietnam fell to its lowest level since Q4 2021. The main原因 was supply constraints, particularly the scarcity of SJC gold bars, coupled with an excessively wide price gap between domestic and international markets. This shortage prompted investors to shift toward alternative products such as plain 24K gold rings.
In the jewelry segment, Vietnam mirrored global trends, with demand declining 29% year-on-year to just 2.4 tonnes in the final quarter of the year.
Multiple Factors Supporting the Gold Market in 2026
Central banks continued to play a crucial role in supporting the gold market, with total purchases in 2025 reaching 863 tonnes. Although this figure was lower than the more than 1,000 tonnes recorded in each of the previous three years, net buying remained robust, particularly in the fourth quarter, when central banks added 230 tonnes to their reserves.
Mr. Fan highlighted major buyers such as the National Bank of Poland, which has been a strong net buyer for two consecutive years and has recently announced further purchase plans. Particularly notable was Kazakhstan, a gold-producing country that typically sells when prices are high, but which has now become an active buyer amid concerns over the instability seen in 2025. The market also witnessed the return of central banks that had previously been absent, including those of Brazil, Indonesia, and Guatemala.
Looking ahead to 2026, Mr. Fan stated that although gold prices have corrected after surpassing USD 5,000 per ounce earlier in the year, the fundamental drivers supporting gold remain firmly intact. Geopolitical tensions, security threats, trade risks, and especially speculation surrounding the independence and interest-rate policy of the U.S. Federal Reserve are expected to continue acting as key catalysts. He forecast continued volatility due to speculative capital flows, but noted that short-term price corrections are often viewed by institutional investors and central banks as opportunities to accumulate more gold.
Responding to questions about disparities in investment opportunities — where global capital is flowing strongly into ETFs and physical gold while Vietnamese investors lack diversified channels, particularly due to shortages of gold bars — Mr. Fan stressed that diversifying access to gold is always beneficial. Vietnam is in the process of gradually liberalizing its gold market. Drawing on international experience, development typically begins with physical gold, followed by financial products such as gold savings accounts at commercial banks, and eventually more advanced instruments like ETFs or tokenized gold. He recommended that Vietnam conduct deeper research into these financial products to provide investors with more choices and reduce pressure on physical gold demand.
Addressing comparisons between the current price volatility and the gold price crash of 2012, Mr. Fan recalled that the 2012 collapse occurred because fears of inflation stemming from quantitative easing (QE) failed to materialize, stripping investors of the rationale for holding gold. However, he emphasized that the context in 2026 is fundamentally different.
First, current risks — including geopolitical tensions, falling interest rates, and concerns over central bank independence — are real, ongoing, and unlikely to dissipate soon. Second, today’s gold market is far more globalized than in 2012, when it was largely dominated by Western investors. The rise of emerging-market central banks and Asian investors has created a more diversified and resilient demand base, providing stronger structural support for gold during periods of volatility.
Mr. Shaokai Fan concluded that as the world undergoes major disruptions and transitions, gold is no longer merely a profit-seeking instrument, but a strategic asset that delivers balance and stability to investment portfolios.
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