China’s gold output hits 381.34 metric tons as investment demand surges 35 percent to record highs

China’s gold sector demonstrated robust resilience and a strategic pivot toward investment-grade assets in 2025, as domestic production climbed and investor appetite for bullion reached record heights, according to the latest data from the China Gold Association (CGA). China saw its domestic raw material gold output rise to 381.34 metric tons in 2025, a steady 1.09 percent increase from the previous year. This growth was partly bolstered by aggressive global expansion strategies from the nation’s leading mining conglomerates. Overseas production by major Chinese gold groups surged to approximately 90 tons, signaling a remarkable 25 percent year-on-year increase, it said.

Shifting consumer behavior

The 2025 data reveals a significant evolution in Chinese consumer behavior. While traditional jewelry consumption adjusted to 363.84 tons, down 31.61 percent year-on-year, the market saw an extraordinary surge in demand for physical investment products. Demand for gold bars and coins skyrocketed by 35.14 percent to 504.24 tons, reflecting a powerful trend among investors to prioritize gold as a premier safe-haven asset. High-tech and industrial usage also maintained an upward trajectory, growing 2.32 percent to 82.02 tons, fueled by the nation’s expanding electronics and green energy sectors.

Unprecedented financial inflows

The most striking growth occurred in the financial sector. China’s gold-backed Exchange-Traded Funds (ETFs) witnessed an unprecedented inflow of 133.12 tons in 2025—a staggering 149.91 percent increase compared to the 53.27 tons added in 2024. By the end of December 2025, total domestic gold ETF holdings reached a record 247.85 tons, it said.

Read more: China’s central bank extends gold buying streak to 14 months as reserves surpass $319 billion

China’s strategic gold evolution

This momentum carried directly into the new year, with the People’s Bank of China (PBOC) reporting its 14th consecutive month of gold purchases as of January 2026, bringing its total official reserves to 2,306.30 tonnes (74.15 million ounces) to further bolster currency sovereignty and de-dollarization efforts. While the sector enjoyed record turnover on the Shanghai Gold Exchange in January, the market experienced a brief but dramatic volatility event in early February 2026; after local prices surged to record highs, a 19% price correction led to nearly $1 billion in profit-taking outflows from Chinese gold ETFs in a single day, though institutional analysts at Goldman Sachs and J.P. Morgan maintain that the long-term bull cycle remains intact with price targets nearing $5,000 per ounce by late 2026. 

Looking ahead, the Chinese government is currently drafting a five-year gold industry development plan for the 2026–2030 period, which focuses on accelerating deep-mining technologies beyond 2,000 meters and expanding the use of nano-gold in high-tech manufacturing to ensure future resource security. 

Moreover, to manage heightened retail interest, major lenders like the Industrial and Commercial Bank of China (ICBC) introduced new risk assessment requirements for gold accumulation products on January 12, 2026, ensuring that the surge in “safe-haven” buying remains within stable regulatory boundaries.