close
close

Rising prices cool gold purchases in China, consumption falls 11%

Posted on by L. Dreeye
Rising prices cool gold purchases in China, consumption falls 11%

(Reuters) – China’s gold consumption fell significantly in the first nine months of 2024, falling 11.18% to 741,732 metric tons from the same period last year, according to the China Gold Association. The decline is primarily due to reduced jewelry purchases as record high prices discourage buyers in the world’s largest gold market.

The jewelery sector, which accounts for 53.9% of total gold consumption, witnessed a sharp decline of 27.53% year-on-year, with purchases falling to 400,038 tonnes between January and September. The association attributes the decline to persistently high gold prices, although it notes that the emergence of new sales channels has provided some relief.

“Gold prices rose during the first three quarters, impacting jewelry purchases, although the rapid development of new e-commerce models such as live streaming and instant retail led to increased consumption of small gram gold jewelry,” the association said. . .

The price of the precious metal surged on the Shanghai Futures Exchange, rising 23.5% year-to-date to reach 596.72 yuan ($83.69) per gram by the end of September. The upward trajectory continued into October, with prices reaching an unprecedented level of 630.44 yuan per gram on October 23, driven by escalating tensions in the Middle East.

However, not all segments of the gold market showed a decline. Investment demand, especially for gold bars and coins, showed strong growth, increasing by 27.14% to 282,721 tons. The association attributed the rise to “relatively low premium rates,” suggesting investors view gold as a safe-haven asset despite high prices.

On the production side, China’s domestic gold production has shown mixed results. Production from local raw materials in the first three quarters decreased slightly by 1.17% to 268,068 tons. The association attributed the decline to a transitional phase: “The domestic industry is in the process of converting old capacity to new, and recently built large mines have not yet developed new production capacity, so production volume has not shown the expected growth.”

Despite this temporary setback, the association maintains an optimistic long-term outlook for domestic production. At the same time, gold production from imported raw materials showed strong growth, increasing by 15.51% year on year to 111,207 tons. This boost helped boost China’s total gold production over the period to 379,275 tonnes, an annual increase of 3.2%.

Contrasting trends between consumer and investment demand highlight challenging dynamics in the Chinese gold market as high prices continue to reshape purchasing patterns across sectors.

Recommended investment companies in gold and silver (Announcement)

“Best Overall” by Money Magazine, award-winning for 6 years, thousands of 5-star ratings

Expand Details

Known for its exceptional customer service and commitment to transparency, Augusta Precious Metals has received numerous awards, including “Best Overall” from Money Magazine and “Most Transparent” from Investopedia. The company’s commitment to educating and supporting its customers has earned it top ratings from organizations such as A+ from the BBB and AAA from the BCA.

Industry leader with over $2 billion in gold and silver holdings. Best Precious Metals Company with Buy Back Guarantee

Expand Details

From precious metals to direct purchases of gold and silver, Goldco has helped thousands of Americans place over $2 billion in gold and silver. The top-rated precious metals company has an A+ rating from the Better Business Bureau and a Triple rating from the Consumer Business Alliance. Earned over 6,000+ 5-star customer ratings. Money.Com 2024 Best Customer Service 2024 Inc. 5,000 Regional Representatives: #17 Pacific, 2024 Stevie Gold Award, Inc.’s Fastest Growing Company. 5000 award winner, 8+ years

American Hartford Gold, Inc.’s No. 1 ranked Gold Company. 5,000, boasts thousands of A+ BBB ratings and 5-star reviews endorsed by Bill O’Reilly and Rick Harrison.

Expand Details

With over $2 billion in precious metals traded, American Hartford Gold helps individuals and families diversify and protect their wealth. Their team of experts provides investors with the latest market information and historical perspective, ensuring informed decisions. Trusted by public figures and praised for its exceptional customer service, the company offers competitive prices on top-tier gold and silver coins backed by a 100% customer satisfaction guarantee.

This article is for informational purposes only. The opinions and analysis expressed herein are those of the author and do not constitute financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment objectives and risk tolerance before making any decisions. It is recommended that you consult with a qualified financial advisor. JPost.com is not responsible for any investment losses resulting from the use of this information. The information provided is for educational purposes only and should not be construed as trading or investment advice.