Chinanews client, Beijing, August 6th (Peng Jingru) "I just watched "Drunk Golden Fan" a few days ago, the real version will be staged?
Recently, gold has ushered in the "golden age", and prices have repeatedly exceeded historical highs. On August 4, local time, both the London gold spot and COMEX gold futures exceeded $2,000 per ounce, setting a new record high again.
London spot gold chart.
The price of gold hits a record high, the post-90s generation is busy buying gold
On August 5, during Asian market trading hours, the London gold spot opened at $2018.36 per ounce, after which the price continued to rise. As of press time, the highest reported US$2039.9/ounce; COMEX gold futures reported a highest reported US$2055.4/ounce.
"With the help of factors such as the new crown pneumonia epidemic, low interest rates, global central bank stimulus measures, the sharp depreciation of the U.S. dollar, geopolitics and other factors, the price of gold has soared by more than 30% this year, becoming one of the best performing major assets in 2020." SDIC Essence Futures Liu Dongbo, a senior researcher in the Nonferrous Metals Group of the Academy, told Chinanews.com.
As of August 4, since 2020, London spot gold has risen by 32.98%, and COMEX futures gold has risen by 34.02%.
Gold ETFs have become the main force in buying gold this year. As of Monday (August 3), the global gold ETF holdings with physical support have increased by 30.5% this year to 3365.6 tons, which is several tons higher than Germany's reserves and second only to the United States' gold reserves.
The main force to buy gold is not only gold ETFs, but also "post-80s" and "post-90s" who have quietly entered the market.
Independent Speculator chief analyst Lobo Tiggre told the media that young investors who used to avoid investing in gold have shown unprecedented interest in gold. He pointed out that on the Robinhood platform of the US stock internet broker, which attracts a large number of young retail investors, the trading activities of gold ETFs have increased significantly.
"Because of work, I will pay attention to all kinds of financial management. I used to buy gold bars or coins on a regular basis. Later, I changed it to deposit gold." After 90s working in a bank, Miss Li said that in order to avoid risks, she paid $1,980 on the gold station. There was a redemption at the high point per ounce, but the yield was still nearly 40%.
Ms. Li said that there are no shortage of "back wavers" who invest in gold. "My sister who is still in graduate school listened to the teacher's analysis of the gold market in class, and tried a small investment on Alipay. Some of my colleagues and customers have the habit of investing in gold, just like me."
Strange phenomenon: gold investment is hot, no one buys gold jewelry
"The one dollar gold I bought by Alipay is going up!" "I bought gold at the bank 3 years ago. I went to the bank to open an account and apply for a card. The lady at the counter recommended it, so I made a muddled investment." "It is flexible to make spot gold. , You can buy up and buy down, and you can make a stable profit of 5%-10% every month and you can still guarantee the capital." Many netizens shared their investment experience.
Unlike when Chinese aunts bought physical gold, many people now invest in gold ETFs through stock accounts or platforms such as Alipay.
Liu Dongbo said that domestic gold ETF investment targets are mainly AU9999 gold spot contracts listed and traded on the Shanghai Gold Exchange. The trend of ETF is highly consistent with domestic gold prices. It is a relatively low-cost, transparent, efficient, and liquid gold investment tool. Favored by investors.
“Investors with higher risk appetite can use domestic Shanghai Futures Exchange’s gold futures, options and Shanghai Gold Exchange’s gold T+D for leveraged trading investments. Leveraged trading is relatively risky and requires strong professionalism. It is recommended that ordinary investors participate cautiously ." Liu Dongbo reminded.
Although the popularity of gold as an investment product is on the rise, physical gold is a bit cold in real life. “There are people who look at gold jewelry, but many people want to wait for the price of gold to drop slightly before starting. After all, jewelry is not just needed, so you don’t have to buy it in a hurry.” A staff member from Chow Tai Fook, Xicheng District, Beijing told China News. Most of the clients who buy gold jewelry are married."
Data map: Gold bars displayed in a gold shop in Taiyuan, Shanxi. Zhang Yunshe
According to data released by the China Gold Association a few days ago, in the first half of 2020, the actual consumption of gold in the country was 323.29 tons, a decrease of 38.25% compared with the same period in 2019. Among them, gold jewelry was 207.87 tons, a year-on-year decrease of 42.06%; gold bars and gold coins were 76.98 tons, a year-on-year decrease of 32.12%.
Data from the World Gold Council also verified this point. Due to the impact of the epidemic, the global demand for gold jewellery in the first half of the year nearly halved year-on-year to 572 tons. The impact of the epidemic in the second quarter was still severe. The consumption of gold jewellery fell to 251 tons in the quarter, a record low.
Gold price, the next stop target is 3000 USD/ounce?
"After all, jewelry can't be realized, I'll go to the bank to open an account and invest." The news that gold prices have been rising all the way made some consumers eager to try. However, many banks have suspended the opening of precious metals trading in advance.
On July 28, the Agricultural Bank of China issued a notice to stop opening trading services for platinum and palladium accounts from 8 am on August 10; ICBC also notified that the account of platinum and palladium will be suspended from 0:00 on July 31. Open positions for all products of account palladium and account precious metal index. In addition, the Bank of Communications and Minsheng Bank etc. have suspended trading of account precious metals.
Liu Dongbo said that investors who have bought are not affected and can continue to hold or take profits. "Recently, the price of precious metals has fluctuated greatly, and the requirements for risk control are increasing. There is a lesson from the'crude oil treasure' incident. At present, many banks have announced the suspension of opening transactions of gold, platinum, palladium and other precious metal-related products."
Data map: Bank staff are serving customers. Photo by Zhao Ding
Last week, gold experienced a sharp dive of nearly $70 per ounce. Liu Dongbo believes that it is mainly due to the technical adjustments triggered by the bulls' profit settlement after the recent gold price has risen too fast, which does not affect the continuation of the strong pattern of gold.
Previously, Citigroup and many other institutions expected the price of gold to reach US$2,000 per ounce within the year. Now the target point has been completed ahead of schedule. Is there any further upside for gold next? The agency also updated its views.
Goldman Sachs predicts that gold may climb to $2,300 per ounce because investors are "looking for a new reserve currency." RBC Capital Markets predicts that there is a 40% probability that the price of gold will rise to $3,000 per ounce.
"In the medium term, the strong pattern of gold has not changed, and the bull market has not yet finished. In the short term, after the rapid rise of gold, this week will usher in the release of heavy US non-agricultural data. There is a risk of large two-way fluctuations in the price of gold." Liu Dongbo said .
Have you bought gold recently? How much money did you make? (Finish)