World Gold Council: Gold Returns Approximately 5% Annually, Driven by Demand for Wealth Preservation

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The World Gold Council reported a bearish trend in China’s gold jewelry market, with consumption declining 30% year-over-year to 136 tons in H1 2026. Despite a bullish trend in spending, which increased 5% to RMB 14.37 billion, the “price-up, volume-down” dynamic persists. Gold’s long-term annualized return has averaged approximately 5%, driven by demand for wealth preservation.

Huo Xing Finance reports that on September 7, the World Gold Council released "Insights into China’s Gold Jewelry Retail Trends 2026" and responded to media questions regarding the evolution of hard gold products and the transformation of gold jewelry consumption patterns. Wang Lixin, Chief Executive Officer of the World Gold Council in China, stated: “Hard gold remains the ‘sun at eight or nine in the morning’—it will undoubtedly be the future, with enormous potential remaining.” The Chinese gold jewelry market is experiencing a typical “price up, volume down” trend. According to council data, gold jewelry consumption volume declined by 30% year-over-year to 136 tons in the first half of 2026, while total consumption value increased by 5% to RMB 143.7 billion. Retail stores continue to consolidate, and demand for self-wear and self-reward has risen for three consecutive years, shifting consumption from “special occasions” to “everyday moments.” The report’s outlook on gold investment trends is as follows: in the short term, watch the tug-of-war between the “hawkish” Federal Reserve and the “dovish” U.S. Treasury; in the medium term, central bank gold buying provides support; in the long term, economic growth will drive consumption and wealth storage demand. Historical data shows that gold has delivered a stable average annual return of approximately 5% over the long term. (21st Century Business Herald)

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