China National Gold Group Gold Jewelry Association: China's gold production in the first half of the year was 179.634 tons, an increase of 0.58% year-on-year.

On July 28th, according to authoritative data disclosed at the 2024 China International Gold Conference, in the first half of 2024, the domestic raw gold production was 179.634 tons, an increase of 1.036 tons compared to the same period in 2023, a year-on-year growth of 0.58%. Among them, gold mining production was 141.496 tons, and by-product gold from non-ferrous metals was 38.138 tons. In addition, in the first half of 2024, the imported raw material gold production was 72.026 tons, a year-on-year increase of 10.14%. If this imported raw material production is added, the total gold production in the country was 251.660 tons, an increase of 3.14% year-on-year. In the first half of 2024, gold mining enterprises and large-scale gold smelting enterprises seized the favorable opportunity of high gold prices, adjusted their production capacity structure, optimized their production layout, and made full use of gold mineral resources, achieving significant results. Major gold mines such as Sanshandao in Shandong, Zhaizigou in Gansu, Bilihuer in Inner Mongolia, Duobaoshan in Heilongjiang, and others saw a year-on-year increase in gold production of over 10%. Shandong Humon Smelting Co., Ltd. accelerated the implementation of a comprehensive recovery project for complex gold concentrate elements, resulting in a significant increase in smelted gold production (including imported raw material gold) compared to the same period last year. In the first half of 2024, although the price of gold performed well, the gold production in China did not increase as expected, mainly due to the gradual depletion of easily exploitable resources in old mines, the difficulty in constructing new mines, and the increasing requirements of safety and environmental protection policies. Some gold mining companies reduced production, shut down for rectification, or could not continue production. Large gold enterprises (groups) are the backbone of China's gold industry. In the first half of 2024, domestic mining production accounted for 67.851 tons, or 47.95% of the national total. Companies such as Zijin Mining Group (02899), SD GOLD (01787), and Chifeng Jilong Gold Mining (600988.SH) had significant results in their "going global" strategies. In the first half of 2024, the overseas mining production of the Chinese gold industry reached 34.399 tons, a year-on-year increase of 19.00%. In the first half of 2024, the national gold consumption was 523.753 tons, a decrease of 5.61% compared to the same period in 2023. Jewelry consumption was 270.021 tons, a year-on-year decrease of 26.68%; gold bar and gold coin consumption was 213.635 tons, a year-on-year increase of 46.02%; industrial and other gold use was 40.097 tons, a year-on-year decrease of 0.53%. The high and fluctuating gold price increased the operational risks for gold processing and sales enterprises, leading to a significant decrease in the processing volume by jewelry companies as wholesale and retail enterprises reduced their purchases. In the first half of 2024, the total trading volume of all gold varieties on the Shanghai Gold Exchange reached 29,800 tons (14,900 tons on one side), a year-on-year increase of 39.77%, with a total turnover of 15.49 trillion yuan (7.74 trillion yuan on one side), a year-on-year increase of 68.48%. The total trading volume of all gold varieties on the Shanghai Futures Exchange reached 80,100 tons (40,100 tons on one side), a year-on-year increase of 34.74%, with a total turnover of 35.67 trillion yuan (17.84 trillion yuan on one side), a year-on-year increase of 58.58%. In the first half of 2024, especially after March, the price of gold rose rapidly, leading to a sharp increase in trading volume. Therefore, domestic gold exchanges implemented market risk control measures. The Shanghai Gold Exchange issued a notice to increase the margin ratio and price limits for gold deferred contracts, while the Shanghai Futures Exchange imposed trading limits on gold futures and raised the fees for main gold contracts. In the first half of 2024, buoyed by the rising gold price, the holding amount of domestic gold ETFs increased to 92.44 tons, an increase of 30.97 tons from the end of 2023, with a growth rate of 50.38%, reaching the highest level since the listing of domestic gold ETFs in July 2013. In a forum held in Shanghai, at the Shanghai Lujiazui Finance & Trade Zone Development forum in June, the China Banking and Insurance Regulatory Commission expressed its intention to actively explore the pilot investment of insurance funds in gold contracts and related products on the Shanghai Gold Exchange, sending a positive signal for the entry of insurance funds into the gold investment market. In the first half of 2024, ongoing geopolitical conflicts, weak global economic recovery, high inflation, increasing unilateralism and protectionism have led to a renewed focus on the hedging and value-preserving functions of gold, resulting in a strong increase in gold prices and consistently breaking new historical highs. At the end of June, the London spot gold closing price was $2,330.90 per ounce, a 12.34% increase from the beginning of the year at $2,074.90 per ounce, with an average price of $2,202.91 per ounce for the first half of the year, a 14.05% increase from the same period last year at $1,931.54 per ounce. The closing price for Au9999 gold on the Shanghai Gold Exchange at the end of June was 549.88 yuan per gram, a 14.37% increase from the opening price of 480.80 yuan per gram at the beginning of the year, with a weighted average price of 514.12 yuan per gram for the first half of the year, an 18.98% increase from the same period last year at 432.09 yuan per gram. In the first half of 2024, central banks around the world continued to increase their gold holdings, steadily increasing the share of gold in their foreign exchange reserves. China has accumulated an additional 28.93 tons of gold holdings, bringing the total gold reserves in the country to 2,264.33 tons by the end of June.