China's gold demand plummets 49% since 2013 peak, but value spending surges

China's appetite for gold has contracted sharply over the past decade, even as the nation's consumers are paradoxically spending more money on it. The volume of gold consumed in the country fell by nearly half between 2013 and 2024—from 938.80 tonnes to 479.14 tonnes—a decline that reflects both the rising price of the metal and the country's broader economic slowdown, according to analysis from the World Gold Council.

The story of China's gold market divides neatly into two eras. From 2001 to 2013, demand surged by 362 percent, driven by market liberalisation, growing wealth, and rapid urbanisation. That 2013 peak represented the height of bargain-hunting fervor. But the years that followed told a different story. Ray Jia, the WGC's China research head, attributes the subsequent decline to multiple overlapping pressures: slowing economic growth, a generational shift in how younger consumers view gold, and most acutely, the sharp rise in gold prices, particularly after 2022. The transition has been longer and more stubborn than previous cycles—China's economy has been caught between passive destocking and active restocking since the second half of 2023, a period that extends well beyond the typical three to four-year inventory cycle that usually governs such shifts.

Beyond the cyclical forces lie deeper structural changes reshaping the market. China's demographics have shifted dramatically. Birth rates and marriage rates have both declined, which matters because gold jewellery has traditionally been gifted for weddings and births. The number of jewellery retailers has also contracted, a symptom of weakening demand that reinforces itself. Post-pandemic consumer spending remains subdued, the real estate sector has struggled, and trade tensions with the United States add another layer of economic uncertainty.

Yet the headline numbers obscure a more nuanced reality. While tonnage demand has collapsed, spending on gold jewellery in value terms has actually risen. In the first quarter of 2025, Chinese consumers spent 84 billion yuan on gold jewellery, a 29 percent increase from the previous quarter and the third-highest quarterly figure on record. The apparent contradiction resolves itself when you consider what drives the spending: consumers are buying less gold, but they are paying more for it, and they are doing so deliberately. Many view gold jewellery as a store of value—an investment that has delivered solid returns in recent years. Others are drawn to it for aesthetic reasons or as an everyday accessory.

A 2024 WGC survey revealed a striking shift in who is buying. Among consumers aged 18 to 24, 62 percent now own gold jewellery, up sharply from 37 percent in 2019. This younger cohort is purchasing gold for themselves rather than receiving it as a gift—79 percent of all gold jewellery purchases are for personal use, while 41 percent are gifts. The data suggests that gold has gained ground relative to other types of jewellery, even as the overall market has contracted. Yet Jia notes that gold jewellery, despite its investment appeal and growing ownership among young people, does not stand out as a product that delivers the emotional satisfaction consumers increasingly seek—joy, confidence, a sense of personal expression.

The outlook remains clouded. Structural headwinds—fewer births, fewer marriages, demographic aging—point toward prolonged consolidation in the market measured by weight. The cyclical forces that have kept demand depressed show no immediate sign of reversing. Yet the willingness of Chinese consumers to spend more money on gold jewellery, even at historically high prices, suggests that the market has not lost its appeal entirely. What has changed is the nature of the demand: smaller in volume, more concentrated among self-purchasers, and driven increasingly by the perception of gold as a hedge against economic uncertainty rather than as a traditional luxury or ceremonial good.