Chinese gold demand rebounded strongly in 2021 after a slump in 2020, reports the World Gold Council. In 2021, Chinese gold consumption saw a strong upswing of 56% year on year. Demand for gold jewelry increased by as much as 63% to 675t. This demand is even higher than the 2019 figures. Demand for gold bars and coins also increased by 44% to 284t. This is 35% higher demand than in 2019.
As demand increased, premiums increased and averaged $6 per ounce. However, this was still below the premium of 2019 when the average was $10 as can be seen from the green line in the picture.
At the wholesale stage, demand increased by 45% YoY to 1,746 tonnes that showed offtakes at the Shanghai Gold Exchange.