China Gold Association: Gold consumption up almost 50% in 9 months
02 Nov 2021
New data from the China Gold Association shows that consumer demand in China for gold is up by 48.44% in the past nine months.
Economic recovery, vaccine rollout, and a reduction in overall Covid cases has helped return a degree of normality to society. Industrial demand is beginning to return, but with threats still present the evidence is clear that many consumers are opting for gold bullion or jewellery in the face of uncertainty.
The numbers show 813.59 tonnes of gold purchased in between January and September this year, with growth in bullion demand of 50.25% (up to 214.13 tonnes) and of jewellery purchasing of 54.21% (up to 529.06 tonnes). Industry was a much steadier gain of 12.66% increased demand (up to 70.4 tonnes)
Gold production was severely hampered in 2020 due to the pandemic but surprisingly China's output dropped in 2021, with 236.75 tonnes of gold being produced between Q1 and Q3 compared to 262.93 tonnes last year in the same nine month period.
The expectation now is that gold production will stay diminished, but demand should carry on through Q4 and into early next year – especially when considering the winter risk of aiding the spread of Covid.