Peru's gold exports to China through June overtake all 2024

Peru's gold exports to China surged to $947 million in the first half of 2025, already surpassing the $885 million exported in all of 2024 and marking a nearly fourfold increase from the prior year's period. This significant rise, alongside a 46% year-on-year increase in Peru's overall gold exports to $8.57 billion, reflects heightened global demand for the safe-haven asset, driven by ongoing U.S.-China trade tensions. However, concerns persist regarding the increasing share of gold sourced from illegal mining operations.

Analysis

Peru's gold exports are experiencing an exponential growth trajectory, primarily driven by a surge in demand from China amidst ongoing global trade tensions. In the first half of 2025, exports to China reached $947 million, a figure that not only represents a near fourfold increase from the same period in the prior year but also surpasses the total for all of 2024, which stood at $885 million. This trend is part of a broader expansion, with Peru's total global gold exports climbing 46% year-on-year to $8.57 billion in the first six months of 2025. The data underscores gold's increasing appeal as a safe-haven asset. However, a significant ESG risk looms over this boom, as the report highlights concerns that a growing portion of this output originates from illegal mining operations, which are associated with environmental degradation and social violence. While China is currently the fourth-largest destination for Peruvian gold, behind Canada, India, and Switzerland, its rapidly increasing share signals a notable shift in global commodity flows.

Key Decisions for Investors

• Given the strong, geopolitically-driven demand for gold, investors should evaluate exposure to gold miners operating in Peru, while factoring in the rising price environment and export volumes.
• It is critical to conduct enhanced due diligence on the gold supply chain, as the noted increase in illegal mining presents a significant ESG risk that could lead to future regulatory, reputational, or operational challenges.
• Monitor the accelerating Peru-China trade axis as a key indicator of emerging market trade realignment and sustained demand for hard assets, which may signal further strength in the commodity cycle.