Chinese gold consumption rebounded within 2021, rising by thirty six. 53% year on 12 months as the market continues to recover after taking a hard hit during the coronavirus pandemic.
More significantly, gold demand was up 11. 78% compared with intake in 2019, before the pandemic.
China rates as the world’s number one precious metal consumer.
Chinese language gold demand came in from 1, 120. 9 a lot, according to data released by the China Gold Association.
“ Within 2021, under the remarkable results of China’s overall economic advancement and epidemic prevention and control, domestic gold intake generally maintained a recuperation trend and achieved quick growth compared with the same time period (in 2020). ”
A come back in gold jewelry sales helped drive overall requirement higher. Gold jewelry sales were up 44. 99% to 711. 29 loads last year.
Chinese investors place money into gold ETFs as well. According to World Gold Council data, Chinese gold-backed funds hit record holdings of 75. 3 a lot worth $4. 4 billion dollars at the end of 2021. On the season, China’s gold ETFs recorded net inflows of fourteen. 4 tons.
ETFs are backed by physical gold held by the company and are traded on the market like stocks. They allow traders to play gold without having to purchase full ounces of precious metal at the spot price.
Meanwhile, on the supply side, the world’s biggest gold producer reported a drop in mine result. Gold production at Chinese mines declined by 9. 95% year-on-year to 328. 98 tons.
According to the World Gold Council, inflation concerns, low possibility cost and seasonal need could support further growth in gold demand moving forward.
According to the Global Times , the Chinese government applied macroeconomic policies aimed at bolstering domestic gold consumption.
Last spring, China gave the green light for the import associated with 150 tons of gold . The report notes that China’s returning appetite intended for gold could potentially “ support global prices. ” Reuters called the size of the anticipated Chinese gold imports a “ dramatic return to the global bullion market. ”