China Gold Association (CGA) released its annual report, revealing that China’s domestic gold production reached 381.339 tonnes in 2025—a 1.09% increase year-on-year.
While the domestic output growth was steady, the report highlighted a much more aggressive expansion in overseas mining and a historic shift in how Chinese citizens are consuming the precious metal.
1. Domestic vs. Global Output
China remains the world’s largest gold producer, but its mining companies are increasingly looking beyond its borders to secure supply.
- Domestic Production: Rose to 381.34 tonnes. The CGA attributed this to “phased breakthroughs” in deep-earth exploration and new mining technologies implemented throughout 2025.
- Imported Raw Materials: Gold produced within China using imported ores jumped 8.81% to 170.681 tonnes.
- Overseas Surge: Major Chinese mining conglomerates (like Zijin Mining and Shandong Gold) saw their overseas production skyrocket by 25%, reaching approximately 90 tonnes in 2025.
2. The “Investment Flip”: Bars Over Jewelry
The most striking revelation of the 2026 report was a structural “megatrend” in consumer behavior. For the first time in history, investment gold demand has overtaken jewelry demand in China.
| Segment | 2025 Consumption | Change (YoY) | Reasoning |
| Gold Bars & Coins | 504.24 Tonnes | ↑ 35.14% | Surge in safe-haven seeking amid global volatility. |
| Gold Jewelry | 363.84 Tonnes | ↓ 31.61% | High prices (reaching $5,000/oz) deterred casual buyers. |
| Industrial Use | 82.02 Tonnes | ↑ 2.32% | Growing demand in green energy and high-end electronics. |
- Total Consumption: Despite the spike in investment, total gold consumption in China actually fell 3.57% to 950.1 tonnes, as the massive drop in jewelry sales outweighed the gains in bar and coin purchases.
3. The ETF and Central Bank Factor
Financial institutions and the central bank (PBOC) played a massive role in the 2025 gold story:
- ETF Explosion: Inflows into gold-backed Exchange-Traded Funds (ETFs) surged by 150%, adding 133.12 tonnes in 2025 alone. Total domestic ETF holdings hit a record 247.85 tonnes by December.
- Reserves Expansion: China increased its official gold reserves for 14 consecutive months through December 2025, adding 26.75 tonnes to bring its total reported holdings to 2,306.32 tonnes.
4. 2026 Outlook: The Road to $5,000
As of early February 2026, market sentiment remains “extremely bullish” for the remainder of the year.
- Price Targets: J.P. Morgan and other major analysts are projecting gold to test the $5,000 to $5,400/oz range by the fourth quarter of 2026.
- Production Guidance: Large firms like China Gold International have issued guidance for “steady progress” in 2026, focusing on enhancing underground resource utilization at major sites like the CSH Mine in Inner Mongolia and the Jiama Mine in Tibet.
Conclusion: Gold as a “Strategic Anchor”
China’s 2026 gold landscape is defined by Resilience and Reallocation. While domestic mines are working harder to find gold, the real action is in the hands of Chinese investors who are abandoning jewelry in favor of bars and ETFs. In an era of $5,000 gold and trade uncertainty, China is treating the metal less as an ornament and more as an essential strategic anchor for its economy.
