China Gold Association: China’s gold bar and gold coin consumption in the first quarter was 106.323 tons, a year-on-year increase of 26.77%

The latest statistics released by the China Gold Association on the 26th show that in the first quarter of 2024, national gold consumption was 308.905 tons, an increase of 5.94% compared with the same period in 2023. Among them: 183.922 tons of gold jewelry, a year-on-year decrease of 3.00%; 106.323 tons of gold bars and gold coins, a year-on-year increase of 26.77%; 18.660 tons of industrial and other gold, a year-on-year increase of 3.09%. In the first quarter of 2024, the impact of high gold prices on gold consumption will be polarized. Rapidly rising gold prices, coupled with factors such as gold jewelry processing fees and high brand premiums, have increased consumer wait-and-see sentiment, which has suppressed gold jewelry consumption to a certain extent and increased sales pressure on gold jewelry retailers. High gold prices and huge fluctuations have increased production and operation risks for gold processing and sales companies. Wholesale and retail companies have become cautious in purchasing goods. Jewelry processing companies have increased raw material costs and reduced shipments. Some small and medium-sized processing companies have even suspended operations and taken holidays. In contrast, due to the surge in safe-haven demand, physical gold investment has received higher attention, and the consumption of gold bars and gold coins with relatively low premiums has increased significantly.