China’s gold consumption in the first three quarters of 2024 fell by 11.18% year-on-year to 741.732 metric tons, according to the China Gold Association. The decline is primarily attributed to high prices dampening demand for jewelry, which constitutes 53.9% of total consumption. Gold jewelry purchases decreased significantly, dropping 27.53% to 400.038 tons compared to the same period last year.
The association noted that while rising gold prices have negatively impacted jewelry sales, innovative e-commerce models, including live streaming and instant retail, have spurred growth in the consumption of smaller gram gold jewelry. As of September 30, the most-active gold contract on the Shanghai Futures Exchange surged by 23.5% since the year’s beginning, reaching 596.72 yuan ($83.69) per gram.
The price continued to climb, surpassing 600 yuan per gram to hit a record high of 630.44 yuan on October 23, driven by escalating tensions in the Middle East. In contrast, demand for gold bars and coins—often seen as a safe-haven investment—increased by 27.14%, totaling 282.721 tons, attributed to relatively low premiums.
In terms of production, China’s gold output from domestic sources slightly declined by 1.17% to 268.068 tons in the first three quarters. The association explained that the industry is undergoing a transition, with new large mines yet to reach full production capacity. However, they remain optimistic about future output growth despite the current temporary dip. Conversely, gold production from imported raw materials rose by 15.51% to 111.207 tons, resulting in a total output of 379.275 tons for the period—a 3.2% annual increase.
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