Investment Gold Outshines Jewelry in China Amid Price Surge
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A customer buys gold jewelry at Beijing’s Caishikou Department Store on Feb. 3, 2026. Photo: Caixin
Chinese consumers bought more gold bars and coins for investment than jewelry for the first time in 2025, underscoring a structural shift in the world’s largest gold market.
Demand for gold bars and coins jumped 35.1% to 504 tons last year, while gold jewelry consumption plunged 31.6% to 364 tons, data released Thursday by the China Gold Association showed. The diverging trends pulled China’s overall gold consumption down 3.6% from a year earlier to 950 tons.
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- In 2025, Chinese investment gold demand (bars and coins) rose 35.1% to 504 tons, surpassing jewelry consumption, which fell 31.6% to 364 tons.
- London spot gold prices surged 62.9% to $4,308/oz; new tax policies favored investment-grade gold.
- Global gold demand topped 5,000 tons for the first time; China’s ETF holdings rose by 133.1 tons and official reserves reached 2,306.3 tons.
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Who’s Who
- Citic Securities Co. Ltd.
- An analyst at Citic Securities Co. Ltd. estimated that a new value-added tax policy, effective November 1, 2025, would increase costs for non-investment gold producers by over 60 yuan per gram. This burden would likely be passed on to jewelry buyers.
- Shanghai Gold Exchange
- The Shanghai Gold Exchange facilitates the trading of Au9999 gold in China. In 2025, the price of Au9999 gold on this exchange rose by 58.8% to 975 yuan ($140) per gram. A new value-added tax policy, effective November 1, 2025, largely preserved tax advantages for investment-grade gold traded through the Shanghai Gold Exchange.
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What Happened When
- 2025：
- Chinese consumers bought more gold bars and coins for investment than jewelry for the first time.
- 2025：
- Demand for gold bars and coins in China jumped 35.1% to 504 tons; gold jewelry consumption plunged 31.6% to 364 tons.
- 2025：
- Chinese gold-backed ETF holdings increased by 133.1 tons.
- 2025：
- Gold prices surged; London spot gold ended the year at $4,308 an ounce, up 62.9% from the start of the year.
- 2025：
- Price of Au9999 gold on the Shanghai Gold Exchange rose 58.8% to 975 yuan per gram.
- 2025：
- China’s central bank purchased 26.8 tons of gold for a 14th straight month of increases.
- 2025：
- Global gold demand exceeded 5,000 tons for the first time.
- 2025：
- Global net inflows into gold ETFs were 801 tons after four consecutive years of outflows.
- 2025：
- Global bar and coin purchases rose 16% to 1,374 tons, a 12-year high.
- By the end of 2025：
- Total holdings of Chinese gold-backed ETFs reached 247.9 tons.
- By the end of December 2025：
- China's official gold reserves stood at 2,306.3 tons.
- November 1, 2025：
- A new value-added tax policy took effect in China, distinguishing between investment and noninvestment gold.
- Thursday, February 6, 2026：
- China Gold Association released data on gold consumption and investment for 2025.
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