China’s Gold Consumption Declines in Q1 2025

Shanghai: According to the China Gold Association, gold consumption in China experienced a year-on-year decrease of 5.96%, totaling 290.492 tons in the first quarter of 2025. This downturn is primarily attributed to elevated gold prices, which have continued to dampen demand for gold jewelry.

Consumer Behavior Shifts

The surge in gold prices has prompted a change in consumer preferences. Traditional gold items, such as jewelry and ornaments, are being replaced by gold bars and coins as favored investment options.

Consumption Breakdown
  • Gold jewelry consumption saw a substantial decline of 26.85% year-on-year, reaching 134.531 tons during the quarter.
  • Conversely, the consumption of gold bars and coins witnessed a significant increase of 29.81%, climbing to 138.018 tons. This surge reflects investors’ pursuit of secure assets amidst global economic instability and geopolitical tensions.
Impact of Geopolitical Uncertainty

Investors are increasingly turning to gold as a safe-haven asset in response to economic volatility and geopolitical uncertainty.

Domestic Gold Production Increases

China’s domestic gold production edged up by 1.49% year-on-year to reach 87.243 tons in the first quarter of 2025.

When incorporating gold derived from imported materials, which amounted to 53.587 tons, China’s overall gold output reached 140.830 tons during the quarter, marking a 1.18% increase compared to the previous year.