China’s Gold Consumption Continues to Surge, Driving Global Demand
The Latest Trends in China’s Gold Market
According to the China Gold Association (CGA), China’s gold consumption saw a significant increase of 5.94% in the first quarter of 2024 compared to the same period in 2023. This growth was fueled by a surge in demand for safe-haven assets among Chinese citizens.
Breaking Down the Numbers
During the first three months of the year, Chinese buyers purchased a total of 308.91 metric tons of gold. Gold bars and coins accounted for 34% of the total, with a notable 26.77% increase to 106.32 tons in Q1.
However, the rise in gold prices also had its downsides. High prices made gold jewelry less affordable for many consumers, leading to a 3% decline in purchases to 183.92 tons. This segment still represented 59.5% of total consumption, but operational risks for gold processing and sales companies increased due to escalating prices.
Domestic Production and Imports
China’s domestic gold production grew by 1.16% to 85.96 tons in Q1, while production from imported raw materials spiked by 78% to 53.23 tons. This brought total gold production in the country to 139.18 tons, marking a 21.16% increase from the previous year’s first quarter.
In a separate report by the Hong Kong Census and Statistics Department, it was revealed that China’s net gold imports via Hong Kong surged by 40% in March. The top gold consumer imported a net 55.836 metric tons of gold, up from 39.826 tons in February. Total gold imports from Hong Kong rose by 40.2% to 63.499 metric tons.
Conclusion
China’s strong appetite for gold continues to have a significant impact on global demand and production trends. As prices reach new highs, the country remains a key player in the gold market, influencing both consumption patterns and supply chains.