Gold demand soaring in China – report

5 Feb, 2024 05:49 / Updated 10 months ago
Households have been snapping up bullion despite record prices

Chinese investors and households were major gold consumers in 2023 amid strong global demand for the safe-haven metal, the World Gold Council’s quarterly report has shown. 

According to the publication, Chinese investment demand for gold – spanning bars and coins – jumped 28% last year to 280 tons. Jewelry consumption was also up 10% to 630 tons. Overall, gold purchases reached nearly 960 tons in 2023.

“China was key to a lot of what was happening last year,” said Louise Street, senior market analyst at the WGC. “When you look at the consumer sector, China is not the price-setting factor but it is providing a floor.” 

The world’s second-biggest consumer, India, saw total gold purchases slide to 748 tons in 2023. It was followed by the US (249 tons), Türkiye (201.6 tons), and Iran (71.8 tons). The top ten also included Russia, Germany, Egypt, Vietnam, and Saudi Arabia.

The report indicated that together with “blistering” demand from global central banks, Chinese consumer demand helped push the yellow metal’s price to record highs in December and keep it above $2,000 per troy ounce this year.

According to the WGC, total worldwide gold demand in 2023 was the highest on record at 4,899 tons, with annual bar and coin investment seeing a mild contraction and annual jewelry consumption holding steady at 2,093 tons.

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