​Design-heavy Jewelry Shines in H1

A report from chinadaily on July. 29th, 2025:

Rising gold prices dampened gold jewelry consumption in China during the first half of this year, although lightweight, well-designed jewelry with high added value remained popular, the China Gold Association said.

According to the association, China’s gold consumption fell 3.54 percent to 505.21 metric tons in the first half, as high prices deterred jewelry purchases.

According to CGA data, gold jewelry consumption dropped 26 percent year-on-year to 199.83 tons in the January-June period, while demand for gold bars and coins, often seen as an investment, surged 23.69 percent to 264.24 tons.

Industrial gold consumption also increased by 2.59 percent to 41.137 tons, driven by a recovery in demand for gold salt, it said.

On the supply side, China’s domestic gold production edged down 0.31 percent year-on-year to 179.08 tons in the first half of 2025, as major Chinese gold mining enterprises adjusted their short-term production plans to focus on long-term, high-quality development, increasing investment in infrastructure and technological upgrades for large-scale mining projects.

However, the overseas operations of Chinese gold mining companies saw significant growth, with output rising 16.17 percent to 39.61 tons in the first six months of the year, reflecting their global development strategy.

Market activity on the Shanghai Gold Exchange also remained robust.

According to Zhao, the SGE made progress in its international expansion, further enhancing China’s influence on the global gold trading and delivery supply chain, and significantly boosting the country’s bid for gold pricing power.

“For long, China has been the world’s largest gold producer and consumer, with the central bank continuously increasing its gold reserves, and domestic gold mining enterprises actively involved in global exploration and mining resource development,” said Zhao.

“From mining to delivery, trading, and even gold financial derivatives, China’s gold market has established a comprehensive, multidimensional system.”

Chinese gold exchange-traded funds saw substantial inflows during the first six months, adding 84.77 tons, a 173.73 percent increase compared to the 30.70 tons added in the same period of 2024. By the end of June, domestic gold ETF holdings reached 199.51 tons.

Meanwhile, China’s central bank continued to bolster its gold reserves, adding 18.97 tons in the first half of 2025. As of the end of June, China’s total gold reserves stood at 2,298.55 tons, it said.