China News Network, September 9 (Zhongxin Financial Reporter Xie Yiguan) 13 yuan, 500 yuan, 550 yuan... Under the "climbing" of gold prices, behind every pair of eyes staring at gold quotes, there is a heart that is about to move.

Is now still a good time to buy gold?

Exceeded 600 yuan, domestic gold price "climbed"

"The gram price of gold jewellery was 605 yuan in the first two days, but it has fallen in the past two days, and today it is 599 yuan." On the 11th, a teller at a Zhou Taifu store in Beijing told reporters.

Not only Zhou Tai Fook, according to the reporter, at present, the retail price of Zhou Shengsheng, Lao Fengxiang and other brands of full gold jewelry is floating around 600 yuan, and the price of Caibai's full gold jewelry is relatively low, with a quotation of 12 yuan on the 572th.

This wave of gold price rise, from the data point of view is more intuitive. According to the Au99.99 market chart of the Shanghai Gold Exchange, gold prices began to climb in July 2022, reaching 7.11 yuan on September 400 after breaking through the 9 yuan mark in November last year, up about 11% from the same period last year.

Screenshot of the gold price of the Shanghai Gold Exchange.

In the first half of the year, the risk aversion triggered by the US banking crisis and the US government debt ceiling crisis drove investors into the gold market, and international gold prices rose sharply.

Recently, under the influence of the US dollar, the international gold price measured by the US dollar has fallen, why will the domestic gold price come out of the opposite trend and continue to rise?

According to Wang Youxin, a senior researcher at the Bank of China Research Institute, this reflects the strong domestic demand for gold.

Wang Youxin mentioned to Zhongxin Financial Reporter that due to the balance of value preservation and wearing attributes, gold has gradually become an investment variety favored by consumers under the background of pressure on other investment channels and product prices such as domestic real estate, stock markets, and funds. With the increasing sophistication of gold jewelry, the recognition of gold products by young consumers is also increasing.

In addition, factors such as the previous decline in the RMB, driven by risk aversion, and early purchase of gold in anticipation of higher international gold prices in the future have all contributed to the recent rise in domestic gold prices.

"The higher the rise, the more you buy", the people set off a "gold buying fever"

The strong demand for gold is most obvious to salespeople. "There are indeed many people buying gold this year, and the low interest rate of banks coupled with the mentality of 'buying up, not buying down' has spawned people's enthusiasm for buying gold." The aforementioned Chow Tai Fook teller said.

This "gold purchase" boom also led to the growth of gold sales.

According to statistics from the China Gold Association, in the first half of this year, the national gold consumption was 554.88 tons, an increase of 2022.16% compared to the same period in 37. Specific to the category, gold jewelry was 368.26 tons, a year-on-year increase of 14.82%; Bars and coins were 146.31t, up 30.12% y-o-y.

The growth rate of gold bars and coins is much higher than that of gold jewellery, reflecting the fact that people value gold investment more today.

Data map: Customers scan the code on site to buy ice and snow sports gold bars. Photo by China News Agency reporter Cui Nan

Previously, Ms. Zhang, who was in Beijing, bought 20 grams of gold bars from Caibai out of the need for risk avoidance and investment, and now (12th) the investment gold price has risen to 468.5 yuan, Ms. Zhang also regretted recently, "I bought too little before."

For young people who want to invest and are cash-strapped for cash, the popular "little golden beans" have become the choice of many people.

At the end of August, consumer Xiao Li bought the first "Little Golden Bean" at a price of 8 yuan. "My friends around me started saving gold and buying gold jewelry very early, and I awakened my awareness of gold late." She said, "Seeing that the gold price has been rising this year, it is inevitable to be itchy, but I feel that the premium of gold jewellery of major brands is higher, or gold beans are more cost-effective, and I started after comparing the prices from many parties." ”

"There are a lot of people coming to buy little golden beans." The aforementioned Chow Tai Fook teller also took out a golden bean to show the reporter, "This golden bean is currently 536 yuan, no cost of work, and the investment gold price is the same." ”

"Since the beginning of this year, the emergence of hot-selling products such as 1g golden melon seeds, golden beans and gold ingots fully reflects the strong demand of investors for gold investment and wealth management products." Wang Youxin said.

Will the price of gold go up?

In addition to the retail price of gold jewellery exceeding $600 per gram, two other pieces of news have recently attracted attention.

On the 7th, People's Bank of China released data, as of the end of August, People's Bank of China gold reserves reported 8.6962 million ounces, up 93,10 ounces from the previous month, the 8th consecutive month of increase; On the 7th, the World Gold Council released a report that global official gold reserves continued to increase in July, and global central banks purchased 55 tons of net gold.

Central banks have increased their reserves of gold, which has also strengthened people's confidence in buying gold. But is the price of gold firm?

Infographic: People buy gold jewelry. Photo by Luo Yunfei

Wang Youxin said that from the follow-up trend, the short-term domestic gold price may continue to remain high, approaching the "November" golden holiday, domestic gold consumer demand is still strong. "At present, the return on investment of other investment products has not improved significantly, and gold is still a better investment and safe-haven asset choice."

However, Wang Youxin also mentioned that around the end of the year, the RMB exchange rate may rebound, which will inhibit the rise of domestic gold prices. On the whole, there is still a possibility of a rise in the short term, but there is limited room for continued sharp upside.

Many people are optimistic about the future market of gold and buy gold beans and gold coins significantly. However, the aforementioned Chow Tai Fook teller told reporters that the recovery price of gold beans and gold coins is much lower than the purchase price. "Now the golden beans bought for 536 yuan, the recycling price is only more than 400. If you start now, the gold price will have to rise to more than 600 yuan to return the capital. (End)