Our reporter Huang Shiqiang
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In the eyes of the outside world, the rising gold price should be good news for jewelry companies, but it has caused a lot of "sighs" in the industry. Industry experts suggest that regardless of whether the price of gold rises or falls, investors need to calmly respond. Really understand the characteristics of gold investment and maintain a cautious and rational investment attitude.
"How much is the price of gold now per gram?" "Is this necklace pure gold?" "Will the price of gold fall?" At the end of August, several consumers surrounded the many gold shops in the Jiugongmiao business district in Dadukou District, Chongqing. Discuss the trend of gold prices together.
Right now, gold has once again become the focus of the financial market.
Since March of this year, the price of gold has continued to rise. As of early August, the spot gold price has risen to US$2049.9 per ounce, which is the highest price in gold that has been maintained for 9 years.
The price of gold continues to rise. How will this affect jewelry companies and the entire consumer market?
To this end, the reporter launched an investigation.
The skyrocketing makes it difficult for companies
"This wave of gains really surprised us." Facing the reporter's question, Weng Dequan, the head of the Chongqing brand operation center of the jewelry brand Yuanyangjinlou, said frankly, "I didn't expect it to be so fierce."
Weng Dequan, who has been in the business for many years, talked about the current situation of the industry this year. He said that the sudden epidemic at the beginning of the year made the entire market miss the "Golden Week" of the Spring Festival. Big shock.
However, in the eyes of the outside world, the rising price of gold should be good news for jewelry companies. How can it attract "a lament" in the industry?
Is the continued rise in gold prices a good thing for jewelry companies?
Zeng Lingwei, secretary general of the Chongqing Gold, Silver and Jewellery Industry Association, explained, “The increase in gold prices is good news for jewelry companies with large inventories. This means that even if there is no sales profit, the overall inventory value is increasing, but the price of gold continues to rise. , It will also reduce the shopping desire of many consumers, leading to a sharp decline in sales year-on-year, making jewelry companies only earn a premium, without good sales, there will be no substantial profit."
The reporter noted that in June this year, jewelry company Chow Tai Fook mentioned in its financial report that “the company’s turnover was affected by the epidemic, the surge in international gold prices and other factors, which suppressed the retail demand for gold products.” The China Gold Association released the statement. "China Gold Yearbook 2020" also pointed out that the average gold price is expected to rise 22% year-on-year in 2020.
"Sales will definitely be restricted." Weng Dequan said that the Spring Festival and National Day are two fixed sales "golden nodes" for jewelry companies every year, but the situation this year is extremely special. "Will the coming National Day improve? As practitioners, we can only wait for opportunities."
Not long ago, Yuanyang Jinlou launched the "Caibao Series" products to try to discover new product attributes and open up new marketing paths.
"Through differentiated products to increase market consumption points." Weng Dequan told reporters that the company has also increased sales promotion activities, and everything is done to reduce the adverse impact of the soaring gold price on the company.
Retail frustrated but investment is heating up
However, in the face of the situation of "precious metals represented by gold rising", many industry insiders said that "it was not only unexpected but also reasonable."
Li Peng, the person in charge of a gold store in the Guanyinqiao business district in Chongqing Jiangbei, told reporters that since April this year, the price of gold has been surging all the way, and the price is unexpected, but considering various factors, this is also reasonable.
"Compared with the same period last year, the price of gold this year, whether it is jewelry gold or gold bullion investment, has increased by about 100 to 110 yuan per gram year-on-year." In Li Peng's view, the impact on the retail market is investment. The market has been "finished".
"In the past, many people tended to invest in online products such as stocks and funds, but now many people think that some value-preserving items are needed to deal with sudden crises."
Dong Wei, who has worked in the financial industry for more than ten years, believes that this year's epidemic and the international economic environment and other comprehensive factors are important factors that have caused gold prices to rise.
Risk aversion in the market is high. As a safe-haven asset, gold will naturally be welcomed by investors. In addition, in recent years, the performance of gold prices has not been outstanding, and there are factors such as large valuation "depressions", which makes gold a large category. Over-allocation varieties in asset allocation.
"Qianjing in the second half" caused controversy
"The price of gold will definitely go up and you can't lose money." On the afternoon of August 23, a middle-aged couple bought a pure gold medal at a gold shop in the Yangjiaping business district in Chongqing.
The reporter learned that not only in Chongqing, but also similar scenes can be seen in gold shops in many domestic cities. There will still be consumers with a mentality of "buying up, not buying down", and their investment attitude is very optimistic, but there are also some People are worried about the "money scene" of gold prices.
Li Peng believes that global risk aversion will further rise, and more funds will flow into the gold and silver markets in the later period. However, the current gold price is already at a high level, and the global economic growth rate may continue to decline. This determines the future gold price. The upside space is not particularly large.
In fact, many institutions have issued risk warnings in the face of "crazy rising" gold.
On July 28, when the price of gold reached the highest level in history, the Shanghai Gold Exchange issued a risk alert to remind investors to do a good job in risk prevention, raise risk awareness, reasonably control positions, and invest rationally.
Industry experts suggest that regardless of whether the price of gold is rising or falling, investors need to calmly deal with it. They need to truly understand the characteristics of gold investment. In particular, they must avoid some investment misunderstandings, such as buying related products at the price of gold jewelry as an investment, and be cautious. , Rational investment attitude.