With the international gold price hitting a record high, can gold consumption continue to “buy, buy, buy”?

Rise, rise, rise! International gold prices hit a record high!

　　Branded gold jewelry is approaching 690 yuan per gram. Can gold consumption continue to be "buy, buy, buy"?

　　Last week, the price of gold surged again and became a trending topic on Weibo. As of the close on March 29, Shanghai gold futures closed up 2.56% at 531.3 yuan/gram, and the intraday price was 532.54 yuan/gram, a record high. Overnight, international gold prices hit a record high again, with COMEX gold futures hitting a record high of $2,256.9 per ounce.

　　The prices of domestic brand gold jewelry are also rising. Yangzi Evening News/Ziniu News reporters visited many brand gold jewelry stores in Nanjing and learned that the current price of pure gold jewelry from Chow Tai Fook has risen to 686 yuan/gram, and the price of investment gold bars is . 616 yuan/gram. Can residents continue to “buy, buy, buy” gold consumption? What should you pay attention to when investing in gold?

　　Intern Wang Wenxuan Yangzi Evening News/Ziniu News reporter Fan Xiaolin Xu Jing

Gold jewelry is close to 690 yuan per gram, and gold stores in shopping malls launch "event prices"

　　On March 31, a reporter from Yangzi Evening News visited many chain brand gold stores such as Xinjiekou and Taiping South Road and saw that each brand had launched a certain amount of weekend promotions, and some brands had a discount of 99 yuan per gram.

　　At the Chow Tai Fook counter of the Xinjiekou store in the Central Shopping Mall, the price of pure gold jewelry in the store is 686 yuan/gram, and the price of investment gold bars is 616 yuan/gram. The basic gold price of Laomiao Gold is 688 yuan/g, with a discount of 60 yuan per gram at the event price. In addition, you can enjoy a 120 yuan Meituan coupon; the basic gold price of Chow Tai Fook is 686 yuan, with a discount of 30 yuan per gram (you can also purchase Meituan coupons, which are based on the total price). The basic gold price of Lao Fengxiang is 686 yuan, and the discount price is 60 yuan per gram. In addition to the promotions launched by the store, the final discount is 99 yuan per gram. The basic price of gold at an old temple gold store on Taiping South Road is 688 yuan/gram, with a discount of 75 yuan per gram, plus labor costs.

　　At the Laomiao Gold Shop on Taiping South Road, a bride to be married in May told reporters that the price of gold has risen too fast recently, and she decided to let her husband buy gold jewelry with a lower gram, saying that he would not follow the trend. As for whether gold jewelry will continue to rise, the salesperson said: "The price of gold changes every day, and the listed prices of gold jewelry are often adjusted. We can't say this. The recent rise in gold prices is a bit confusing."

Why is the price of gold soaring? What you need to pay attention to when investing in gold

　　Why has the international gold price kept rising recently? Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, said in an interview with reporters that the main reasons are as follows: First, the expectation of a weakening US dollar. As a credit currency, the value of the U.S. dollar has a negative correlation with the price of gold. The loose monetary policy and expansionary fiscal policy in the United States have released a large amount of U.S. dollar liquidity, which may cause the U.S. dollar to weaken, thereby pushing up the price of gold. Second, central banks in many countries have begun to increase gold as reserve assets. This trend has intensified the demand for gold. , which has promoted the rise in gold prices; third, the uncertainty of the global economic and political situation has increased the market demand for gold and other safe-haven assets; fourth, the Federal Reserve's interest rate cut expectations and the decline in the US dollar index have also promoted the rise in gold prices.

　　Regarding the rising prices of gold jewelry, Bo Wenxi reminded that the price of gold jewelry usually includes higher processing and design fees, which may affect its return on investment. Therefore, personal needs and investment purposes should be considered when purchasing gold jewelry.

　　So, for ordinary people, what should we pay attention to when investing in gold bars? Guo Tao, an angel investor and a special researcher at the NetEase E-Commerce Research Center, believes that in the short term, international gold prices generally show an upward trend. In the first and second quarters, gold prices were driven by economic weakening and risk aversion factors, showing a volatile bias. A strong trend does not rule out the possibility of hitting new record highs, but even traditional safe-haven assets like gold cannot completely avoid risks. Investors should remain cautious, not blindly follow the trend, and consider long-term investments.

　　Bai Wenxi said that in addition to gold bars, other ways for ordinary people to invest in gold can consider financial derivatives such as gold ETFs (exchange-traded funds), gold futures, gold options, and gold accumulation businesses. Each method has its own characteristics and risks, and it is recommended to conduct sufficient market research and risk assessment before investing.

　　Further reading

Can gold stocks still chase the rise?

Experts warn: Risks are high after a sharp rise

　　Boosted by the rise in gold prices, the precious metals sector in the A-share market closed up collectively. As of the close on March 29, Chifeng Gold (600988.SH) rose by the daily limit, Shandong Gold (600547.SH) rose nearly 8%, and Yintai Gold (000975.SZ) ), CICC Gold (600489.SH) and Hunan Gold (002155.SZ) rose more than 6%.

　　Traders said they must be wary of the risk of a correction after gold stock prices overshoot.

　　Many listed companies in the gold sector recently disclosed their 2023 annual reports. Shandong Gold's 2023 annual report released on the evening of March 28 showed that during the reporting period, the company recorded revenue of 59.275 billion yuan, a year-on-year increase of 17.83%; net profit attributable to the parent company was 2.328 billion yuan, a year-on-year increase of 86.57%.

　　The 2023 annual report recently disclosed by Zijin Mining (601899.SH) shows that during the reporting period, it achieved operating income of 293.4 billion yuan, a year-on-year increase of 9%; it achieved net profit attributable to the parent company of approximately 21.1 billion yuan, a year-on-year increase of 5%.

　　Wells Fargo Fund pointed out that in the short term, there is a risk of shock after the sharp rise in gold prices; in the medium and long term, the logic of gold's rise is still sufficient. First, as expectations for U.S. interest rate cuts are gradually realized in 2024, the decline in real interest rates is expected to drive the price of gold upward; secondly, there is still great uncertainty in geopolitics, and the value of gold allocation as a safe-haven asset continues to be highlighted. (Yangzi Evening News)