Gold demand across China has surged, depleting inventories at many banks and retailers as the metal climbs to fresh record highs, recently reaching $2,942.71 per ounce.
The Industrial and Commercial Bank of China (ICBC) says most sizes of its Ruyi Gold bars are sold out, with only limited stock of the 10-gram bars remaining. Other major lenders face similar shortages: Agricultural Bank of China and China Construction Bank report constrained supplies, and Bank of China has shifted some offerings to a preorder model to manage demand.
Local jewelers and gold shops are feeling the pressure as well. In Shanghai, one retailer reported selling out of its 100-gram bars ahead of the Chinese New Year, reflecting a rush by consumers and investors seeking physical bullion.
Analysts point to several factors behind the buying spree. Sustained price momentum and record levels have increased investor interest in gold as a hedge against inflation and market uncertainty. At the same time, cultural and seasonal buying patterns—particularly around major holidays—often push demand higher in China, one of the world’s largest markets for physical precious metals.
Supply-side constraints can intensify shortages. Minting and distribution capacities are limited, and when demand accelerates rapidly, available stocks at banks and retail outlets can be exhausted before resupply arrives. To cope, some institutions are prioritizing smaller denominations, offering preorders, or temporarily suspending sales of popular sizes until new shipments arrive.
For consumers, scarcity at branch outlets may steer purchases toward online channels, preorders, or alternative products such as smaller gram sizes and gold investment certificates. Buyers should be aware of premiums above spot price, which tend to rise when physical availability is tight, and consider storage, insurance, and authenticity verification when acquiring bullion.
Market watchers will be monitoring how long the supply squeeze continues and whether refiners and distributors can ramp up production to meet renewed demand. Until then, shoppers in China seeking physical gold may encounter limited selections and may need to adapt their buying strategies to secure holdings.