Chinese demand for gold bars has risen sharply

Demand for gold bars in China increased by more than half in the first half of this year. Increased, according to the latest figures released today by the China Gold Association. In the first six months of this year, a total of 158.4 metric tonnes of gold was sold on the Chinese gold market. Gold bars an increase of 51% compared to the same period last year.

Total demand for physical gold in the first six months of this year amounted to 545.2 tonnes, an increase of ten percent compared to a year ago. The demand for gold for the production of jewellery also remains significant, as with a volume of 330.8 tonnes in the first half of this year, the jewellery industry is still the largest buyer of the precious metal within China.

"Physical gold is playing an increasingly important role in the investment portfolio of Chinese people. The precious metal is seen as a safe haven by a large group of investors, as the vulnerability of financial markets due to geopolitical tensions and interest rate hikes by the Federal Reserve has increased."  - China Gold Association

Chinese gold market

According to Zhang Yongtao of the China Gold Association, Chinese demand for physical gold could exceed 1,000 metric tons again this year. The last time this happened was in 2013, when demand for the precious metal skyrocketed due to a sudden price drop of more than ten percent.

That the Chinese today have almost as much Buy gold als toen shows that there is still a lot of interest in the precious metal. There are various explanations for this, such as the volatility of the Chinese yuan, rising geopolitical tensions and capital restrictions that make it more difficult for Chinese to invest abroad .

The latest figures from the China Gold Association also show that the production of China's gold mining sector has fallen somewhat. In the first half of this year, 241.5 tonnes of gold came from Chinese soil, six percent less than in the same period last year. This decline is attributed to stricter environmental requirements and depletion of the underground gold reserves that are currently known.

Chinese buy more gold again