BEIJING – Gold consumption in China grew by 9.41% from the previous year to 1 089 t in 2017, state television CCTV reported on Thursday, citing figures from the China Gold Association.
Sales of gold jewellery in China were up 10.35% to 696.5 t, while those of gold bars – bought as a safe-haven investment in times of geopolitical uncertainty – were up by 7.28% to 276.39 t, CCTV said on its website.
Gold output in China, the world's largest producer of the metal, fell by 6.03% from 2016 to 426.14 t last year, CCTV said.
This was despite the country's biggest producer, China National Gold – which accounts for around 10% for China's overall production – last month reporting record-high output for 2017.
CCTV said the overall drop was the first "big" one since 2000 and came as the result of production cuts and mine closures that followed the introduction of environmental and resource tax policies in China, as well as the withdrawal of mining rights in some environmentally sensitive areas.
Still, the trade volume for gold products on the Shanghai Gold Exchange, the world's largest physical gold exchange, jumped by 11.5% last year to 54,292 tonnes, the bourse said in January, with turnover increasing by 14.8% from the previous year to 14.98-trillion yuan ($2.38-trillion).
Spot gold prices rose by more than 13% during 2017, peaking at $1 357.54 an ounce. Spot gold has continued to rise this year, up more than 3% for 2018 so far.