26 July 2023
China’s gold consumption rose by 16.37% year-on-year to 554.88 tons in the first half of 2023, driven by a rise in incomes and increased risk aversion to equities and bonds, according to the China Gold Association (CGA). There was a 30.12% surge in gold bar purchases to 146 tons and a 14.82% increase in gold jewelry sales to 368 tons. However, industrial gold usage dropped by 7.65% to 40 tons.
The surge in gold consumption aligns with a recovering economy and a volatile global financial climate, marked by the US banking crisis and the US debt ceiling issue. The retail sector saw significant growth contributions from gold, silver, and jewelry in the first half of the year.
Meanwhile, China’s raw gold production increased 2.24% to 179 tons in the same period, with raw gold imports growing 17.5% year-on-year to 65 tons. The People’s Bank of China, the country’s central bank, has also been augmenting gold reserves for eight consecutive months since November 2022, bringing the total gold reserves to 2,113.48 tons by the end of June 2023.