China regained the lead as the country with the highest level of gold jewelry consumption, with a year-on-year increase of 10% to 630 tons in 2023.

In contrast, India‘s corresponding consumption fell 6% to 562.3 tons.

Together, these two nations account for 57% of global gold jewelry demand in 2023, up slightly from 56% in the previous year.

Historically, jewelry demand has represented the largest component of total gold demand. At the end of 2017, total estimated above-ground gold holdings totaled 6.1 billion ounces, and approximately half of the estimated total has been used in jewelry.

VanEck Merk Gold Trust explains that the motivation behind the demand for gold jewelry differs in different regions of the world. 

In developed countries, gold jewelry is purchased primarily for adornment purposes, while in the developing world, gold jewelry has also been used as a store of value. 

India, East Asia (excluding Japan) and the Middle East are the major gold jewelry markets by volume in the developing world. 

Gold jewelry is generally more heavily trafficked and the price more closely reflects the value of gold in these regions compared to developed countries.

Gold jewelry

Global jewelry consumption increased modestly in 2023, and the increase was led by a 10% growth in Chinese consumption following the removal of Covid-19 restrictions in the country. 

This was partially offset by a reduction in Indian consumption that was impacted by a weakening local currency. 

According to the World Gold Council, total world gold jewelry consumption amounted to 2,092.6 tons in 2023.

On the other hand, gold demand for technology, electronics and other industrial uses fell 3% in 2023 due in part to a challenging economic environment.

Historically, jewelry demand has represented the largest component of total gold demand. 

At the end of 2017, total estimated above-ground gold stocks totaled 6.1 billion ounces, and approximately half of the estimated total has been used in jewelry.