A Dramatic Shift in Gold Consumption Structure: Behind The 26% Decline in Jewelry, The Social Gold Of Generation Z And The Purchasing Spree Of Central Banks Are Dancing Together.

The latest data from the China Gold Association shows that in the first half of the year, the gold consumption was 505.205 tons, a year-on-year decrease of 3.54%. However, the consumption in different sectors presented a "dual landscape": the consumption of gold jewelry decreased sharply by 26%, while gold bars and gold coins increased by 23.69% against the trend. Behind this transformation lies the deep collision of geopolitical factors, generational consumption preferences, and the global "de-dollarization" trend.
Consumer Segmentation: A Cognitive Shift from "Decorative Items" to "Investment Goods"
The "winter" of traditional gold jewelry is caused by the high gold price squeezing non-essential consumption. In the first half of 2025, the average price of Au9999 on the Shanghai Gold Exchange reached 725.28 yuan per gram, up by 41.07% year-on-year and setting a new record high. Despite the high price, consumers turned to "lightweight, high value-added" products - such as the "Cloud Brocade Weaving" pendant jointly launched by Zhongda Sheng and national treasures, and the "Gold Filigree" bracelet from Laopu Gold, which feature innovative craftsmanship. Through cultural premium and aesthetic value, they offset some of the cost pressure.
In sharp contrast to this, gold bars and gold coins have become "hard currency". Geopolitical conflicts and Trump's tariff threats have driven up the demand for safe-haven assets, and private investment demand has soared. According to statistics from CFT Securities, in the first half of 2025, the increase in the holdings of domestic gold ETFs saw a year-on-year surge of 173.73%, with the holdings reaching 199.5 tons. Institutions and individual investors are "hoarding gold" through financial tools to hedge risks.
Generational Shift: The "Social Gold" of Generation Z Reconstructs Market Logic
The rise of the young consumer group has injected new impetus into the gold market. According to Yiren Data, the Z Generation regards gold as a "social currency". The topic "Gold Layering" on Xiaohongshu received over 30 million views, and the interaction volume of "Painful Gold" accessories (fusing with anime IP) reached 1.58 million times. Old Shop Gold, with its intangible cultural heritage craftsmanship and high-end experience (top commercial district stores, exclusive tea rooms for members), saw its net profit increase by 67% year-on-year in 2024 and ranked among the top in the industry in terms of market value.
Behind this trend lies the psychological shift of young people towards "consumption-based savings". Compared to traditional financial products, low-threshold investment items such as 50-gram gold coins and gold beans not only offer liquidity but also possess emotional value, making them a new choice for the "00s" to combat inflation.
Policy and Geopolitics: The Battle Between Central Banks' "Purchasing" and the Fed's Rate Cut
The global central banks' "de-dollarization" initiative has accelerated the strategic return of gold's value. In the first half of 2025, global central banks' gold purchases reached 617 tons (up 23% year-on-year). The People's Bank of China has continuously increased its holdings for eight consecutive months, raising its reserves to 2,298 tons. This trend resonates with the expectation of the Federal Reserve's interest rate cuts - the market predicts a 59% probability of a rate cut in September. The downward movement of real interest rates reduces the cost of holding gold, driving the international gold price to rise by 24.31% in the first half of the year.
However, short-term fluctuations still remain uncertain. On July 24th, COMEX gold futures dropped by 1.66% due to expectations of a relaxation of Trump's tariff policies. As a result, the domestic gold jewelry prices fell below the thousand-yuan mark. Institutions warned that if the geopolitical conflicts ease or the Fed's policies fluctuate, the gold price may face a 10%-15% correction, but most institutions still favor the long-term "super cycle".