According to a report in China Daily on February 7, 2026
China’s gold output increased modestly in 2025, even as overall consumption declined, reflecting a clear shift from jewelry toward investment-oriented products, according to the China Gold Association (CGA).
Data released Thursday showed that domestic gold production reached 381.34 metric tons, up 1.09% from the previous year. Output from imported raw materials rose 8.81% to 170.68 tons, as exploration, development, and technological initiatives achieved notable progress.
While total gold consumption fell 3.57% to 950.10 tons, the drop was driven by a sharp decline in jewelry demand. In contrast, demand for investment products such as gold bars and coins surged, marking the first year that annual investment gold purchases exceeded jewelry consumption in China.
Trading activity on domestic exchanges reflected this shift. Both the Shanghai Gold Exchange and Shanghai Futures Exchange reported robust turnover, highlighting elevated participation amid rising prices.
The investment trend extended to financial markets. Gold-backed exchange-traded funds (ETFs) in China recorded inflows of 133.12 tons in 2025, a 149.9% increase compared with 2024, boosting total ETF holdings to 247.85 tons by year-end.
Analysts say the data signals a growing appetite among Chinese investors to use gold as a safe-haven asset, driven by macroeconomic uncertainty and rising global gold prices. The trend also positions China’s gold market as a key driver of liquidity and investment flows in the region.
“The surge in investment demand indicates a structural shift in China’s gold market,” said a CGA spokesperson. “Investors are increasingly prioritizing bullion and ETFs over traditional jewelry, reflecting broader trends in wealth management and financial asset diversification.”
With domestic production stable and investment demand accelerating, China’s gold market is expected to maintain its pivotal role in both physical and financial markets, influencing global pricing and trading patterns in the years ahead.