China's Gold Consumption Fell 13% Last Year Due to Rising Prices and Declining Births and Marriages

[Asia Economy Reporter Jeong Hyunjin] China's gold consumption, the world's largest gold consumer market, decreased by 13% year-on-year last year. This decline is attributed to rising international gold prices and a reduction in marriages and births, leading to an overall decrease in gold consumption.

According to the South China Morning Post (SCMP) in Hong Kong on the 23rd, the China Gold Association reported that China's gold consumption last year was 1002.78t, down 13% compared to the previous year. This marks the first annual decline since 3016 and the lowest gold consumption volume in three years.

The sharp drop in China's gold consumption is mainly attributed to the surge in international gold prices and the decrease in marriages and births. According to the World Gold Council, international gold prices last year reached their highest level since 2010.

By sector, gold consumption for jewelry, which accounts for about two-thirds of the total, decreased by 8.2% year-on-year to 676.23t. Consumption of gold bars and gold coins, considered alternative investment instruments, plummeted by 27% last year to 225.8t. Additionally, industrial gold consumption in China last year remained at 100.75t, down 4.9% from the previous year.