Industry Overview

China Gold Market Overview

In 2002, after nearly 20 years of state-controlled jewelry production, the manufacturing of gold jewelry opened to private ownership within China.

Currently, there is an estimated 9,000+ manufacturers (highly fragmented)

Industry is in a state of consolidation, with smaller companies being overtaken by larger, more efficient competitors.

Demand Drivers

Gold is embedded in Chinese culture: store of wealth, symbol of social status.
Rising disposable consumer income in China.

Emerging middle class uses gold as both investment and inflation hedge.

Migration of Chinese population from rural to urban areas.

Increasing number of women in China's workforce and strong demand from weddings.

China's top 4 manufacturers were responsible for only 10% of industry revenue in a sector worth $6 billion in 2008.