Thai Gem & Jewellery Exports Sparkle Amidst US Tariff Fears, Gold Shines

Thailand's precious goods sector saw a dramatic surge in April, driven by robust US demand and a record-breaking gold price, though geopolitical risks and a strong baht pose future challenges

 

Thailand's gem and jewellery exports experienced a significant uplift in April 2025, with figures released by the Gem and Jewelry Institute of Thailand (GIT) revealing a continued upward trend.

 

The sector's performance, particularly in the US market, appears to be influenced by efforts to pre-empt potential new tariffs.

 

According to Sumed Prasongpongchai, Director of GIT, total gem and jewellery exports, excluding gold, reached $714.90 million in April, marking an impressive 39.62% increase.

 

This represents the sixth consecutive month of positive growth for the industry. When gold is included, the export value for the month soared by 115.65% to $1,726.67 million.

 

For the first four months of 2025 (January-April), the cumulative figures are equally striking. Excluding gold, exports totalled $5,801.30 million, an increase of 91.76%. Including gold, the figure reached $10,362.53 million, up 110.82%.

 

A substantial contributor to this growth was gold exports, which alone amounted to $1,011.76 million in April, a staggering 250.52% jump. This surge is attributed to speculative trading and a heightened demand for safe-haven assets.
  

Sumed highlighted global concerns over impending US tax measures and retaliatory actions from various trading partners, which pushed gold prices to an unprecedented $3,500 per ounce on 22nd April 2025.

 

Overall gold exports for the four-month period stood at $4,561.22 million, an increase of 141.33%. Monthly gold export figures for early 2025 demonstrate strong fluctuations: January saw $1,167.87 million (up 148.95%), February $933.63 million (up 26.395%), and March $1,447.95 million (up 269.55%).

 

Key export markets showed diverse performance.

 

The United States remained a significant growth driver, with exports increasing by 24.83%, largely due to accelerated imports ahead of tariff changes.

 

Other notable increases were observed in Hong Kong (up 12.03%), Germany (up 8.11%), Italy (up 1.72%), the United Kingdom (up 29.37%), the United Arab Emirates (up 14.24%), and Japan (up 44.37%).

 

Conversely, exports to Switzerland declined by 2.81%, and to Belgium by 24.09%.
  

Product-wise, platinum exports saw an extraordinary leap of 135,096.38%, almost exclusively to India.

 



 

 

Silver jewellery exports rose by 20.19%, gold jewellery by 8.16%, platinum jewellery by 106.43%, cut hard gemstones by 25.26%, cut soft gemstones by 10.89%, and imitation jewellery by a modest 0.02%.

 

However, exports of rough gemstones, rough diamonds, and cut diamonds experienced contractions due to reduced demand from key markets including Hong Kong, Belgium, India, the US, and Israel.

 

Looking ahead, Sumed anticipates continued strong export performance into May 2025, particularly to the US.

 

Despite a 90-day delay in new US retaliatory tariffs (now effective from 8th July 2025), he expects accelerated imports to persist as businesses hedge against uncertain future rates, even with the current 10% levy.

 

He underscored the importance of monitoring ongoing negotiations between the Thai government and the US, as a positive outcome would benefit future exports.

 

However, he also cautioned against persistent risks, including unpredictable US trade policies, geopolitical conflicts impacting global economic growth, and the appreciating Thai baht, which could erode export competitiveness.

 

The GIT director urged businesses to embrace new technologies to boost production, reform services to enhance competitiveness, and foster international and inter-organisational collaborations.

 

This approach aims to uplift the industry through innovation, technology, and market-responsive services, while also upskilling the workforce to adapt to the evolving global economy in these turbulent times.

(2025/06/09-00:00)