SHANGHAI: According to the China Gold Association, gold consumption in China registered a fall of about 5.96 per cent during the first quarter of 2025, with a year-on-year estimation of only 290.492 metric tons.
This is primarily because of the increasing prices of gold, which reduced the buyers to purchase the regular gold ornaments. Most consumers are going after investment gold bars and coins in light of the global scrambling.
The data would show how buying behavior has changed. Consumption of jewellery has fallen by 26.85% to 134.531 tons, with the high prices taking the sheen off gold ornaments for the average buyer.
On the other hand, demand for gold bars and coins fetched an increase of 29.81% at 138.018 tons, depicting a growing preference for gold with respect to the store of value. This phenomenon has been further reinforced by geopolitical tensions and economic volatility, as the investors are driven now more than ever to seek safety in tangible assets.
Despite a drop in overall demand, China's gold production continues to grow. Domestic gold production rose by 1.49% to reach a total of 87.243 tons, while including also gold refined from imported materials, the total amounted to 140.830 tons-an overall rise of 1.18% compared to the same in the preceding year.
In the case of China, and to a greater degree, the world, the changing gold market illustrates the effects of global economics on consumer preferences. Suffice it to say, as prices remain high for gold and the horizon of the economic picture remains cloudy with uncertainty, there should be nothing stopping investment-driven demand for gold. The jewellery segment, however, might continue to ginger up until a price correction becomes significant or conditions generally stabilize within the economy.
[Source Credit: Business Recorder]
