PHNOM PENH, Oct 3 — Lao consumers bought 230 kilogrammes of gold worth US$33 million (RM135 million) in just three days, defying softer global demand and rising prices – a clear signal that price-sensitive Asian buyers are not shying away from the precious metal.
The Lao Gold Festival 2026 attracted over 50,000 visitors, driving strong sales and deposit transactions and reinforcing the government’s goal of establishing Laos as ASEAN’s gold hub.
“People in Laos believe gold is a safe investment. They hedge against risks such as currency depreciation, inflation or economic stress.
“There is a growing awareness of the importance of gold. Consumers buy for investment purposes and traditionally they buy gold for weddings and festivals,” Laos Gold and Jewelry Association Vice President Chanthavong Phamisith told Bernama from Vientiane, which hosted the event from Sept 4 to 6.
Gold hit an all-time high of more than US$5,500 (RM22,467) an ounce in January 2026, before declining sharply to US$4,000 (RM16,340) by June, said the London Bullion Market Association’s second-quarter market report released in July.
Prices have since stabilised between US$4,000 (RM16,340) and US$4,200 (RM17,157) an ounce, still 16 per cent higher than a year ago.
The surge was driven by the West Asia conflict, which erupted in late February, pushing investors towards gold as a safe haven.
The World Gold Council in its July report said global gold jewellery demand fell 17 per cent drop year-on-year to 278 tonnes in the second quarter this year.
Major buyers like China and India, known for their gold-buying traditions, faced a significant decline in sales. Jewellery demand in China fell by 28 per cent, while the Indian market shrunk 15 per cent, according to the council.
But in Laos, the appetite for gold is not fading. Consumers are still investing in small gold bars, bullion and designer jewellery.
“People have more trust in physical assets rather than having a bank balance or stocks. It is also easily convertible to cash and the best way to save their wealth. It is traditional (mindset),” said Chanthavong.
The yellow metal industry is now competing with Laos’ other key revenue-generators like tourism, coffee and electricity exports – that could drive the landlocked economy, still categorised as a Least Developed Country.
The government plans to graduate from the status later this year.
At present, 900 gold shops, 5,000 goldsmiths and about 20,000 artisans propel the sector that has bloomed rapidly over the last decade, he said.
The Laos-International Precious Metals Refinery, which began operations in March this year, has the capacity to produce 150 metric tonnes of gold annually.
The country can manufacture 20 metric tonnes of jewellery every year.
The association is confident that Laos could eventually become the ASEAN gold hub as it has the key infrastructure in place.
“This can happen because we have created a good ecosystem. We have the manpower, gold mines, manufacturers, a goldsmith school to train talent and for trading there is the Lao Bullion Bank. Everything is in place,” said Chanthavong.
Strategically located in Southeast Asia, bordering major markets – Thailand, China and Vietnam – Laos’ gold industry could emerge as a vital contributor to the national economy.
The festival’s sales figures were released on October 1 during a post-event media conference in Vientiane.
