Gold output, consumption to stay robust in 2024

2024-01-30 09:43:00China Daily Editor : Li Yan ECNS App Download

Consumers select gold jewelry at a store in Shenyang, Liaoning province, in December. (PHOTO/CHINA DAILY)

Gold output and consumption are expected to remain in positive territory this year, experts said, after the yellow metal's off-take rose significantly in China last year, fueled by economic recovery and sustained purchases by the central bank.

China consumed 1,089.7 metric tons of gold last year, up 8.78 percent year-on-year, according to data released by the China Gold Association.

Growing risk-aversion by investors due to a volatile global financial environment has contributed to the "gold rush", said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

Zhao said consumption will further grow in China this year, driven by investors' appetite for safe-haven assets.

"The rise in gold prices has been supported by geopolitical tensions and frequent unforeseen events in recent years. The tense geopolitical situation and unexpected prospects of the US elections later this year are likely to provide a solid foundation for gold output and consumption growth, as gold is known for its strong safe-haven appeal," he said.

"The market anticipates positive consumer sentiment, stimulated by expectations that gold prices will reach new highs. China's gold industry has increased its investment in new technologies and capital in recent years, which will further boost gold output and consumption."

Consumption of gold jewelry in China last year expanded 7.97 percent year-on-year to 706.48 tons, while that of gold bars and coins surged 15.7 percent to 299.6 tons.

Consumption of gold for industrial and other use fell 5.5 percent to 83.61 tons, said the association.

Wang Lixin, CEO of the World Gold Council (China), said previously that the introduction of various economic stimulus measures with a focus on consumption has also contributed to the growth in purchases of gold jewelry.

According to the association, boosted by a series of policies aimed at stimulating consumption, the national consumer market has recovered steadily, with gold and silver jewelry emerging as the fastest-growing categories among various retail segments throughout the year.

Retail enterprises engaged in the processing and sale of gold jewelry have consistently introduced innovative designs in their products.

Fashionable and lightweight gold jewelry have gained significant favor among consumers, contributing to the overall increase in gold jewelry consumption, it said.

Gold-backed exchange-traded funds (ETFs) in the Chinese market saw stable growth in 2023, according to the association.

Holdings of gold ETFs totaled about 61.47 tons by the end of 2023, up 10.04 tons, or 19.53 percent year-on-year, it said.

In 2023, the People's Bank of China, the country's central bank, accumulated a total of 224.88 tons of gold, bringing the country's gold reserves to 2,235.41 tons by the end of 2023.

From November 2022 to December 2023, the central bank consistently increased its gold holdings.

Related news


Most popular in 24h

MoreTop news


Back to top About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2024 All rights reserved.
Reproduction in whole or in part without permission is prohibited.
[网上传播视听节目许可证(0106168)] [京ICP证040655号]
[京公网安备 11010202009201号] [京ICP备05004340号-1]