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Informist, Saturday, Oct. 18, 2025

NEW DELHI – Although retail demand for gold jewellery in China remained weak in the first half of 2025, consumer spending on gold jewellery reached $19 billion, on a par with last year's spending, the World Gold Council said in its annual Chinese jewellery retailer report Wednesday. For the second half of the year, the tonnage demand for gold jewellery is expected to improve owing to seasonality. However, the on-year physical volume is expected to decline, although consumer expenditure on gold jewellery is expected to remain at the previous year's level, the report said.

As per the report, the surge in the price of the yellow metal has depressed sales of gold jewellery this year compared to the first half of 2024. However, the surge in price has boosted demand for gold as investment with a rise in the sales of gold bars and coins contributing to retailer sales. Though the on-year sales of gold jewellery declined, gold still held the largest market share, capturing 62% of China's jewellery sector, as per the report.  

Nearly one in three retailers, or about 32%, reported robust growth in sales of hard pure gold jewellery products owing to affordability, innovative design, and smart combination with other materials, according to the report. Similar strength was seen in the sales of gold bars and coins, driven by gold's robust performance and the heightened tendency of Chinese households towards savings.

The surge in gold prices also saw retailers promoting lighter versions of gold jewellery, according to the report. "Products made of 24 karat gold braided into wristbands have become an essential source of revenue for many retailers," the report said. The appeal of these products is that they are typically small and light, which makes them more attractive to young consumers, as per the report.

"We believe China's gold jewellery products are transitioning from 'plain gold' to 'gold+other materials'," WGC said in the report. As per retailers, the combination of gold and other materials like 24 karat gold+braided rope, 24-karat gold+enamel, and 24-karat gold+diamond is adding value to gold products by boosting profit margins for retailers and attracting young consumers. They believe this trend is "here to stay", WGC said. 

In terms of profitability, heritage gold products and hard pure gold items contributed the most to retailer profit in the first half of 2025. However, the profitability in most gold product categories has been lowered from 2023 owing to industry involution, according to the report. Despite the rise in sales of gold bars and coins, their profit contribution has remained muted as consumers typically favour low-cost products for investment. 

Further, the rise in sales of lightweight gold products has been attributed to their popularity amid the surge in gold prices. "Gold products under 10 grams accounted for 45% of their gold jewellery sales in H1 (first half of) 2025," the report quoted retailers as saying. Further, the sales of chunky gold items above 20 grams also fell owing to the price increase. Sales of products weighted between 10 and 20 grams remained stable.

As per the report, consumer spending on gold jewellery for 2025 is rising as compared to 2023. "In value terms, the market is expanding rather than shrinking," according to the report. In consumer jewellery, purchases of self-wear gold products increased to 37% compared with last year's 27%. The sale of self-wear gold products contributed the most to jewellery retailer revenues. "Self-wear is seen as the engine that will drive future jewellery sales," WGC said in the report.

The share of wedding-related gold jewellery purchases shrank to 19% from last year's 24%, owing to a long-term trend of declining marriages, WGC noted in the report. According to the consumer age-group division, middle-aged consumers between the ages of 35 and 55 years were the most vital source of revenue for gold jewellery retailers. Although sales contributions by consumers aged between 18 and 34 years declined from 2024, they still contributed more than a third to jewellery retailer sales in 2025, WGC noted. 

Retailers remain confident about the sale of gold products in the next 1-2 years with 47% of the retailers surveyed anticipating a growth in sales, according to the report. However, they remain cautious on their gold inventory strategy with the number of retailers planning to reduce their gold inventory surpassing those preparing to increase it for the second year. A majority of retailers plan a modest reduction in their gold inventories, as per the report. The reduction comes on the back of uncertainty in China's economic growth and rising fund costs amid surging prices of the yellow metal.  End

US$1 = INR 87.97

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Devanshi Verma

Edited by Rajeev Pai

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