Author: Chen Junjun
After the price of gold continues to rise, investment products linked to gold, whether physical gold or virtual gold, have become popular in the market.
In early trading on March 12 (Tuesday), the spot price of London gold rose to 2,184.76 US dollars per ounce and then fell slightly, with an intraday decrease of about 0.08%, but the increase during the year exceeded 5%; the COMEX gold price also reached a maximum of 2,190.8 US dollars per ounce, and during the year An increase of more than 5%.
The price of gold in the domestic market is still rising slightly. As of press time, the price of gold on the Shanghai Stock Exchange was as high as 509.26 yuan/gram. The highest intraday price on the previous trading day was 511.66 yuan/gram, setting a new record high.
Against this background, the price of physical gold has been rising steadily, almost one price a day; virtual gold has also entered an upward channel, recording eye-catching gains.
With the market booming, investors' expectations for the "realization" of gold investments are high. Industry insiders remind that under the seemingly strong gold price trend, the market has divergent views on the market outlook for gold, and "gold mining" is also risky.
Physical gold is “one price a day”
China Business News reporters visited many gold stores in Shanghai last weekend and found that the price of pure gold and craft gold flakes was about 655-665 yuan per gram. The selling price of pure gold jewelry from brands such as Chow Tai Fook and Chow Sang Sang was as high as 664 yuan per gram.
Today (March 12), the price of gold continues to rise, and many brand stores have raised gold prices again. The retail price of Chow Sang Sang pure gold jewelry is 667 yuan/gram, and the retail price of pure gold jewelry from brands such as Chow Tai Fook, Tse Ruilin, and Chao Acer has reported. to 666 yuan/gram.
The manager of a certain brand of gold store told reporters that the price before the year was about 625 yuan/gram. After the year, the price of gold has been rising. "It has been almost the same price every day in the past two days" and may continue to rise in the future.
The surge in gold prices has attracted many consumers.
The reporter noticed at the gold store that there were many citizens who came to "gold pan" in front of the counter.
Zhao Yan (pseudonym), who lives in Shanghai, told reporters that she thinks the price of gold will continue to rise in the future, so she will take a look at gold jewelry and buy suitable styles.
There are many people who have similar ideas to Zhao Yan. Many consumers told reporters that they feel that the price of gold may rise again. If it does not rise, buying physical gold can also play a role in collecting and preserving value. "In the future, it can also be purchased through Gold recycling and monetization”.
In addition to branded gold stores attracting consumers, physical gold from banks is also popular.
The financial manager of a joint-stock bank told reporters that many regular customers come to inquire about buying physical gold, thinking it is more cost-effective than buying it in a gold store.
Take the physical gold sold by China Merchants Bank as an example. A gold Zhaofu Heirloom Peace bracelet weighs 12 grams and costs about 7,200 yuan. The average price is about 606 yuan/gram, which is much cheaper than the price in gold stores.
However, compared with previous days, the price of physical gold in banks has also increased.
Take the China Merchants Bank Jin Zhaofu traditional bracelet as an example. The price on Monday (March 4) was 17,091 yuan, weighing 30 grams, and the average price was 569.70 yuan/gram.
The quotation on March 10 was 17,607 yuan, and the average price rose to 586.9 yuan/g.
Financial managers from several banks told reporters that the price at which banks sell physical gold is based on the international gold price, plus a few dozen yuan in handling fees. It is much cheaper than the price of retail gold in gold stores, and the price follows market conditions. Adjustment.
Virtual gold is rising again and again
Not only physical gold is popular, but "virtual" investment products linked to gold are also popular driven by the rise in gold prices.
However, in the face of soaring gold prices, the risk of future fluctuations may not be small.
Recently, some major state-owned banks have raised the investment cost of savings funds to warn of risks.
China Construction Bank recently issued an announcement saying that starting from 9:10 on March 7, the starting point for regular accumulation of China Construction Bank's personal gold accumulation business (including average daily accumulation and optional daily accumulation) will be increased from 500 yuan to 600 yuan.
Gold accumulation means that investors open a special account in a bank and buy gold products according to a certain weight or amount. When the "gold" accumulates to a certain amount, investors can choose to exchange it for physical gold, or they can choose to accumulate personal gold. amount sold.
Industry insiders told reporters that this move has raised the investment costs of investors and can guide investors to pay attention to the potential future volatility risks of the investment products.
The reporter noticed that with the help of the surge in gold prices, many banks launched personal gold accumulation business after the holidays.
Including Industrial and Commercial Bank of China, Agricultural Bank of China, China Merchants Bank, Industrial Bank, Bank of Ningbo, etc. However, according to the reporter’s understanding, the above-mentioned banks have not yet made adjustments to their savings business.
Gold-linked ETF funds are also surging.
In the past week (March 4 to March 8), the gold stock ETF (WI.517520) has increased by 9.47%, ranking first in the entire ETF market.
Nine listed gold ETFs in the secondary market also received funding recommendations to increase their positions.
Among them, ChinaAMC Shanghai-Shenzhen-Hong Kong Gold Industry Stock Trading ETF and Everwin Securities Shanghai-Shenzhen-Hong Kong Gold Industry Stock Trading ETF both experienced weekly gains of more than 9%. During the year, ChinaAMC Shanghai-Shenzhen-Hong Kong Gold Industry Stock Trading ETF has risen cumulatively. twenty four%.
However, the gold ETF, which rose steadily in the first four trading days last week, saw a correction on Friday.
On the same day, the gold stock ETF (WI.517520) hit a new high in early trading and then fell back, down 0.82% throughout the day. Five gold ETFs including Qianhai Kaiyuan and Huaan Yifu also fell simultaneously.
The gold concept of A-shares and Hong Kong stocks also rose, driven by rising gold prices.
In the week of March 4, the gold and jewelry sector (WI.884107) rose 7.52%, ranking among the top gainers in the A-share market.
Judging from the stock holdings disclosed by the Yongying Securities Shanghai-Shenzhen-Hong Kong Gold Industry Stock Trading ETF at the end of the fourth quarter of 2023, Zijin Mining, Shandong Gold, Yintai Gold, CICC Gold, Chifeng Gold, Zhaojin Mining, and Chow Tai Fook all achieved good results increase.
Risks of “liquidating”
The rising gold price attracts investors, and behind this may be investors' expectations for the "realization" of gold.
However, industry insiders remind that whether it is physical gold or virtual gold, there are still risks in "liquidation" under the seemingly strong gold price trend.
After the price of gold continued to rise, Sunflower (pseudonym), who lives in Shenhua Street, Hangzhou, prepared to sell the gold bars, gold necklaces and gold earrings on hand, but found that their value was lower than expected when "liquidating".
She said that she spent about 365 yuan/gram to buy gold bars and gold jewelry in 2018. The price of gold has risen sharply recently, so she planned to sell part of it for cash. The staff at the recycling store said that the gold was of average quality, so she only paid 490 for the recycling price. yuan/g, and the average recycling price listed in the store is more than 500 yuan/g.
The reporter contacted a gold recycling store in Jing'an District, Shanghai. The staff of the store said that some gold jewelry is not pure enough and may be adulterated with brass, rhenium, tungsten and other impurities, or if the ingredients are detected to be poor, the price will be affected. Influence.
In addition, many gold recycling people told reporters that gold recycling prices are also affected by market fluctuations.
The reporter learned from the gold recycling platform Jiujiujin that the gold recycling price was reported at 507 yuan/gram on March 12, while the price the previous day was 505.82 yuan/gram.
A staff member of the platform told reporters that the price of recycled gold has recently reached a historical high. This has not been the case for many years in the industry. However, the price of recycled gold follows the changes in Shanghai gold quotations, and the fluctuations are obvious.
Virtual gold also has the risk of “liquidation”.
A financial management manager of a state-owned bank told reporters that if the long-term allocation of the currently attracting savings business can play a role in avoiding risks, "but its price point is already high, so it is recommended to be cautious in allocation."
Supporting the rise in gold prices are the expected interest rate cuts by the Federal Reserve this year and the intensification of geopolitical risks. Huaan Fund Index and Quantitative Investment Department issued a document stating that first, as the inflation level gradually approaches the Federal Reserve's 2% target, the Federal Reserve may enter an interest rate cut cycle in 2024.
Secondly, central banks around the world continue to purchase gold, especially the central bank of China, which has purchased gold for 14 consecutive months, providing support for gold demand.
Finally, the frequent geopolitical risks in the Middle East and overseas banking risks have also provided hedging needs for the gold market.
Industry insiders told reporters that the market has different opinions on the future performance of gold prices, and expectations for its sustainability and upside should not be too high.
According to data disclosed by the World Gold Council, in February, global physical gold ETF outflows were approximately US$2.9 billion, the ninth consecutive month of outflows. In the same month, the global gold market trading volume shrank, with an average daily trading volume of US$147 billion, a decrease of 16% month-on-month. %.