[Explanation] Recently, the price of gold has fluctuated significantly. After a continuous surge and a record high, the international gold futures and spot prices both fell back on July 28. What are the effects of gold price fluctuations on consumers and investors? On July 29, the reporter came to Beijing Caibai Jewelry Headquarters and found that the real-time base price of investment gold on that day was 428.50 yuan/g, and the price of 999 jewelry gold was 510 yuan/g. Consumers' enthusiasm for buying gold jewelry is unabated, and there are also many people who choose to buy back to realize cash and invest in gold bullion coins.
[Concurrent period] Consumers
Haven't gold bars increased their money now? I give it to mean realization.
[Concurrent period] Consumers
Gold bullion investment is more appropriate at this time. Indeed, rising gold (price) is a good long-term investment and can be passed on to future generations.
[Concurrent period] Consumers
(Bought) Rings, necklaces, and earrings. The price is still going up, maybe I didn't consider (price), just decorate it.
[Explanation] Li Yang, a gold investment analyst at Beijing Caibai Company, said that due to the impact of rising international gold prices, store gold prices have increased. Compared with the past, consumers have recently preferred to buy heavy gold products, and the sales of physical investment products such as gold bars have also increased.
[Concurrent] Li Yang, Gold Investment Analyst, Beijing Caibai Company
This time the adjustment is (up) about 12 to 15 yuan (per gram). From March onwards, it is obvious that sales and passenger flow are gradually increasing. Judging from the monthly sales of investment gold bars, there has been a certain increase year-on-year (2019). There is still a lot of information to buy, for example, 3 kg to 5 kg (gold products). The more rigid demand for jewelry may not have much impact on it due to short-term price adjustments.
[Explanation] Experts pointed out that the demand for gold has increased due to factors such as the demand for capital market funds for hedging caused by the spread of the epidemic and inflation concerns caused by loose monetary policies, which in turn pushed up gold prices.
[Concurrent] Wan Zhe, Member of the Academic Committee of Pangu Think Tank
The driving factor for gold's soaring still comes from risk aversion and anti-inflation sentiment. One aspect is that because the global epidemic in the first half of the year caused a major global shutdown, the economy actually experienced a cliff-like decline, which has a great relationship with the global monetary easing (policy) after the epidemic. The uncertainty of the global political and economic outlook has also led to an ever-increasing risk aversion. When people's expectations for future inflation are rising, they often think that gold is a more valuable product to use their asset allocation more balanced.
[Explanation] Recently, many banks have announced the suspension of opening trading of precious metals in their accounts. Wan Zhe said that the purpose of this move is to prevent potential risks caused by price fluctuations. In the short term, gold prices may enter a period of consolidation, but the overall rise is solid. It is expected that China's gold investment and consumer markets will remain hot in the second half of the year. She suggested that investors should choose carefully, and buying gold blindly chasing high is not advisable.
[Concurrent] Wan Zhe, Member of the Academic Committee of Pangu Think Tank
When it rises to a high level, I think it is right to give everyone a risk warning or risk prevention and control measures. But on the other hand, inflation expectations and risk aversion may not disappear in the short term. So I think gold is still supportive at high levels, and the consumption and investment situation in China's gold market is still hot in the second half of the year. It will also be a process of continuous consolidation at high positions, and investors still need to be very cautious in investing. You must invest in formal channels. What kind of product are you buying? What is its nature? What are its risk control measures? You have to look at your own asset allocation needs, the size of your assets and the length of time you hold wealth.
Lang Jiahui reports from Beijing
Editor in charge: [Lu Yan]