China has overtaken India as the world’s No. 1 consumer of gold jewellery, and gold is gaining popularity as a safe investment amid a depressed real estate market and volatile stocks that have wiped out large amounts of wealth. ing.
Gold jewelry consumption in China reached 630 tonnes last year, an annual increase of 10 percent, according to the World Gold Council’s 2023 report released on Wednesday.
“According to a survey by the People’s Bank of China (Central Bank), household savings intentions in 2023 are hovering near an all-time high, and given gold’s long-held status as a store of value, this is This has benefited gold,” the report said.
As asset volatility increases due to a downturn in China’s real estate and stock markets, a weakening renminbi, and an unstable political environment, more Chinese are turning to gold, seeing it as the best means of preserving their wealth. I started paying attention.
Despite the global decline, annual investment in gold bars and coins in China soared to 280 tonnes in 2023, up 28% year-on-year, according to the report.
The report said “lack of alternatives and continued purchases by the People’s Bank of China, as well as hedging against currency fluctuations” were significant factors in China’s demand recovery.
The People’s Bank of China again led as the single largest gold buyer last year, reporting a total increase of 225 tonnes of gold reserves over the year, the highest annual increase since at least 1977, according to the report. It is said that it became
The report said this new addition would help prevent increased asset volatility during the crisis, adding that the People’s Bank of China’s total gold reserves have increased to 2,235 tonnes, but this stockpile is a huge culprit in China’s vast international reserves. Only 4%.
However, demand for global central banks declined slightly last year, the report added.
Looking ahead, the report notes that China’s gold jewelery demand may face headwinds in 2024 after the traditional Lunar New Year first quarter sales increase.
Rising gold prices and a potential slowdown in economic growth could constrain household gold budgets, and the report explores how this could put pressure on gold jewelery demand for the rest of the year. It pointed out.
“Furthermore, 2024 will not be a very auspicious year for marriages, which could have a negative impact on the demand for wedding jewellery,” the report said, adding that consumers will be motivated by “value preservation” in asset acquisitions. It added that this is expected.
According to Chinese customs statistics, gold imports for non-monetary purposes (including gold jewelry) rose to 1,447 tonnes last year, breaking the previous record of 1,427 tonnes in 2018.
China’s society maintains wealth as record imports increase demand for gold
China’s society maintains wealth as record imports increase demand for gold
Last year’s total weight increased seven times compared to 2020, and its value amounted to US$90 billion, an increase of almost nine times over the same period.
According to state media, young people in lower-tier cities and less affluent counties have particularly contributed to the gold hoarding, seeing unfinished apartments and houses not selling despite the sharp drop in prices. It is said that there is
Despite price increases and additional processing fees when purchasing bar and jewelry at retail stores, the annual per capita consumption level of gold jewelry in third-tier cities and below has increased from 460.70 yuan (US$64) in 2017. In 2022, it will increase to 617.50 yuan. According to a report by state broadcaster CCTV, the average annual growth rate is 6 percent.
This was higher than its metropolitan peers and the national average.