China’s gold and silver strategy raises global stakes

The world's largest gold producer is strengthening its position in the precious-metals sector. Yet, domestic gold production is declining, while reserves are accumulating rapidly and demand from various industries is rising, indicating a growing supply problem in the global market.

Also, gold and silver are becoming instruments of economic security and geopolitical rivalry; China stands as a central figure in this new world order of gold and silver production because it is characterized by mass production, rising gold purchases, and an emphasis on domestic reserves.

Newly released data from the China Gold Association on November 4, 2026, will show a contradiction. China produced 220,935 tons of gold in the first 9 months of 2026, an 18.71% drop compared with the previous year. In addition, total production was 347.99 tons when gold produced from imported raw materials is included, indicating a 11.44% decrease.

However, China also shows a strong appetite for gold: consumption in the same period reached 684,623 tons, with investment demand up 26.26% to 444,576 tons, while jewellery consumption fell by 33.86%. More and more gold consumers in China likely treat gold as a reliable means of financial protection rather than a luxury purchase.

Furthermore, the central bank is reinforcing its position, as it raised gold reserves to 2,409.59 tons by September 2026 after purchasing 103.26 tons during the first 9 months.

Regarding silver, it also confirms its importance, as China produced around 112.8 million ounces of mined silver in 2025, ranking third in the world after Mexico and Peru. Moreover, data from the Shanghai Metals Market indicates that China’s refined silver production reached around 16,000 tons in January-October 2026, a significant increase from the previous year.

Nevertheless, the production increase does not eliminate supply vulnerability. Silver is a crucial element for solar energy technologies, electronics, and electric vehicles; meanwhile, mining and refining processes depend on copper, lead, and zinc.

In fact, the question is whether the precious metals industry can meet rising demand for strategic and industrial products without harming the environment. The Chinese experience shows that producing more and ensuring a secure supply are not the same.