China’s consumers dig deep amid economic concerns with splurge on gold bars, coins
- Purchases of gold bars and coins in China surged by 46 per cent in the first half of the year, but expenditure on expensive gold jewellery fell amid rising prices
Limited access to alternative investment channels and hedging tools, such as bitcoin, and concerns over China’s economic prospects led to purchases of gold bars and coins surge by 46 per cent in the first half of the year, analysts said.
Purchases increased to 213.6 metric tonnes (7.5 million ounces), the China Gold Association said on Sunday.
The figure represented 40 per cent of the national gold consumption in the first half of the year, the report added.
Overall, Chinese consumers bought 523.8 metric tonnes of gold, including bars, coins and jewellery, in the first half of the year, marking a 5.61 per cent decrease from the previous year.
Chinese consumers, though, reduced their expenditure on expensive gold jewellery with the global gold price expected to peak further, the association said.
Over half of the gold consumption in the first half of the year was in jewellery, yet the segment saw a 26.68 per cent decline year-on-year to 270 metric tonnes.
The poor consumer sentiment may negatively affect gold jewellery sales, which generally have a higher price premium