As Chinese consumption of gold jewellery slumps 34%, sellers look to markets abroad: WGC

Mon Sep 21 2026

Chinese gold jewellers are seeking opportunities in the Middle East and India, leveraging their advanced crafting technologies as the industry struggles amid the precious metal’s price volatility, according to an international association for the sector.

At the most recent Jewellery & Gem World Hong Kong fair, buyers from the two regions accounted for most visitors, said Wang Lixin, China CEO of the World Gold Council, in a recent interview with the South China Morning Post.

The interest was driven by the increasing demand for new jewellery products as the metal’s price fluctuates rapidly and the progress of Chinese producers in so-called hard pure gold, a new product category using a crafting technique that made the jewellery thinner and harder without contributing extra weight, Wang added.

As consumers in the Middle East and India favoured inlaid jewellery, Wang expected Chinese jewellers could capitalise on their expertise to find local buyers.

“In the past, overseas buyers from these markets have traditionally sought out Chinese manufacturers primarily to find cheaper suppliers for existing designs. But now, [Chinese firms] need to add value to the products with designs and technologies,” Wang said.

China’s consumption of gold jewellery slumped 34 per cent year on year to 132 tonnes in the first half of the year, while the sales of gold coins and bars for investment increased further by 28 per cent year on year to 339 tonnes, data from the China Gold Association showed.

In the second quarter, India surpassed China to become the world’s largest gold jewellery market, accounting for 27 per cent of global demand in the April-June quarter, according to a WGC report.

“The domestic market is currently undergoing a period of adjustment and transition characterised by the interplay of macroeconomic factors and high gold prices,” Wang said. “Challenges certainly exist, and they are not likely to subside any time soon.”

To connect overseas buyers with Chinese producers, the WGC organised major Middle Eastern wholesalers to visit Shenzhen to inspect factories and showrooms and also facilitated visits by the largest retailers in India to global exhibitions to explore collaborations.

Yuehao Jewellery, a Shenzhen-based producer whose origins trace back to 1926, also noted an increase in clients from the Middle East and India, adding that they saw strong interest from Japan and South Korea, said Sharon Weng, vice president of branding and products.

To cater to the Japanese market, Yuehao launched two series featuring “black gold” last year, in which electroplating or oxidation were used to give gold a black appearance, Weng added.

Gold prices remained resilient despite the higher probability of further interest rate increases by the US Federal Reserve, as bullion was expected to be backed by the continuous buying from global central banks amid sticky geopolitical tensions.

Wang of WGC said jewellery producers should double down on improving crafting techniques and design capabilities, areas in which Chinese companies were working hard, rather than focusing on the high cost of materials.

“The manufacturing and processing capabilities of our domestic manufacturers are completely different from what they were five years ago,” Wang emphasised. “It is truly changing with each passing day.”

Source: https://www.scmp.com/