JB Insights
A strategic shift in China’s gold market:insurance capital as a catalyst for industry evolution
Entry of US$25 bn in Chinese insurance funds into the gold market
China’s gold market is poised for a transformative phase following a groundbreaking policy allowing insurance funds to enter the gold investment and leasing space. As detailed in Liang Weizhang’s in-depth analysis, the “Pilot Notice on Insurance Fund Investment in Gold Business”, issued on February 7, 2025, marks a significant shift in the country’s financial and commodity landscape. Ten leading Chinese insurance firms are now permitted to engage in gold transactions through the Shanghai Gold Exchange, potentially mobilizing up to US$25 billion in capital.
While international markets such as the US, UK, and EU already allow regulated insurance investment in gold, China’s move represents a new frontier in leveraging institutional capital to strengthen domestic market liquidity and sophistication. Despite concerns that large capital inflows might inflate gold prices and impact jewellery consumption, the policy imposes strict caps—limiting investment to 1% of total insurance assets—thus mitigating inflationary risks. Instead, this structured participation is seen as a stabilising force that could renew consumer confidence in pricing and support market resilience.
A major highlight of the reform is the expansion of gold leasing, an efficient financing model that reduces operating costs for jewellery manufacturers and retailers. Insurance funds, through financial intermediaries, will provide greater liquidity to this segment, which is already gaining traction in China’s gold economy.
Beyond the financial implications, the policy also underscores the need for continuous innovation in China’s gold and jewellery industry. With high gold prices suppressing traditional demand, firms are increasingly turning to advanced technologies such as 3D and 5D hard gold to create lighter, trend-driven designs. This is especially relevant as younger consumers and e-commerce platforms drive market shifts.
Strategically, the entry of insurance funds is viewed not just as a policy experiment but as a signal of China’s broader ambitions—integrating gold more deeply into financial markets and asset portfolios. It reflects a maturing regulatory mindset, growing global integration, and a push towards diversifying financial instruments tied to gold.
Ultimately, this initiative is catalyzing a “gradual revolution” in the gold industry, transforming how gold is viewed—from ornamental asset to financial instrument. Enterprises that embrace this transition, foster innovation, and leverage global opportunities are likely to emerge as the long-term beneficiaries in an evolving gold economy.
JB Insights
IAGES is a pioneering framework to ensure transparency, trust and sustainability in the gold sector
Indian Association for Gold Excellence and Standards (IAGES) is a Self Regulatory Organisation (SRO) created by the Indian gold industry, for the Indian gold industry, and supported by prominent gold sector industry associations. IAGES stands as an independent body revolutionizing the gold industry in India, aims to brings a pioneering framework to ensure transparency, trust, and sustainability in the gold sector. Kaushlendra Sinha, CEO -IAGES speaking to JewelBuzz, underscores how IAGES will enhance compliance and build trust in the gold sector and dwells on the pan – India roll-out of IAGES.
We are at GJS Diwali edition-What’s your impression of this year’s event?
The energy here is palpable. There’s a renewed sense of optimism, and I must commend the GJC for orchestrating such a seamless show. Events like this are invaluable—they allow us to connect with stakeholders across the ecosystem.
Tell us about IAGES’s relationship with trade organizations.
We maintain a close partnership with the GJC, which is a primary shareholder of IAGES. Our collaboration extends across multiple initiatives, ensuring alignment with industry standards. In essence, we are an industry-led, self-regulatory organization—the first of its kind globally in the gold sector.
What’s the mission behind IAGES?
Our goal is to enhance compliance across the gold industry, thereby strengthening consumer trust throughout the value chain. By creating transparency and standardization, we aim to give consumers confidence when engaging with gold businesses, particularly in high-value, emotional transactions.
How has IAGES evolved since inception?
The initiative began in collaboration with the World Gold Council. By August 2025, IAGES became an independent entity and now operates as a fully industry-led initiative. Our shareholder base includes the GJC and IAGES partners, with more joining progressively.
How are you engaging with the industry across India?
Currently, our accreditation program is live in Mumbai. However, we’ve received significant inquiries from other regions, and we’re actively expanding our assessor network nationwide. Our long-term objective is Pan-India coverage, enabling businesses to access our services regardless of location.
And on the consumer side, what’s the strategy?
Consumer engagement is central to our initiative. IAGES accreditation provides a seal of trust, signifying that a business has undergone third-party assessment, not self-certification. This ensures consumers interact with entities that demonstrate integrity, compliance, and best practices. Our marketing campaign will roll out within the next month, directly targeting consumer awareness and trust.
Can you share some numbers?
We’ve seen a strong response, with over 200 expressions of interest to date. Our panel of 10 trained assessors is currently onboarding, with rigorous training on our code of conduct. Accreditation isn’t instantaneous—it’s a structured, methodical process, ensuring credibility and consistency.
Any final thoughts as you expand this initiative?
Our vision is clear: drive the gold industry towards organization, transparency, and consumer confidence. With government encouragement for the organized sector, initiatives like IAGES are critical in enhancing credibility and reputation.
Thank you for your insights. Wishing you and your team continued success.
Thank you, Steve. We thank JewelBuzz for providing this platform to share our vision and look forward to connecting further with both industry and consumers.
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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.