Gold prices hit a nine-year high! Gold recycling, do you sell gold jewelry at the bottom of the closet？

　　Beijing, China, July 10 (Peng Jingru) Stocks rose, gold also rose, and I don’t know who stole the limelight.

　　Seeing the news that "the price of spot gold exceeds the $1,800 mark per ounce", investor Mr. Sun is in a dilemma: "Recently, the stock market has been singing all the way, and I don’t know if I should take out some test gold."

　　Break through 1800 dollars! Gold prices hit a nine-year high.

　　On July 9, the price of gold opened higher and went lower. The spot opening price of gold in London was $1,808.17 per ounce, and it closed at $1,803.1 per ounce, a decrease of 0.3%.

　　The gold price that embarrassed Mr. Sun, the spot price of gold in London just broke through the $1,800 mark on the 8th, with the highest price of $1,818.14 per ounce, the highest since September 2011, and finally closed at $1,808.50 per ounce.

　　Data Map: Gold bars displayed in a gold shop in Taiyuan, Shanxi. Photo by Zhang Yun

　　"In March, gold rose once, but its performance was unstable." Mr. Sun explained that he was not familiar with the gold market, so he hesitated, but the recent momentum of gold made him feel itchy.

　　"The trend of gold in March-April basically copied the market in 2008." Liu Dongbo, a senior researcher at SDIC Anxin Precious Metals, believes that after the US dollar liquidity crisis in March, the "V-shaped" reversal of gold prices was mainly guided by the global easing policy. The Federal Reserve cut interest rates to zero and started unlimited quantitative easing. The nominal interest rate was extremely low, and the dollar liquidity concerns were gradually removed.

　　Faced with the performance of international gold prices this week, Liu Dongbo told Zhongxin.com that there are many factors that can affect the price of gold. Apart from risk aversion, the price of gold is mainly dominated by the real interest rate in the United States (nominal interest rate-inflation expectation) and the exchange rate of the US dollar. "Recently, both the real interest rate in the United States and the US dollar index are falling, which has formed a substantial positive for gold."

　　Gold stocks staged a daily limit, and gold ETFs became fragrant.

　　With the rapid development of gold, gold ETF (transactional open index fund) also ushered in its own highlight moment.

　　The World Gold Council released a report on the 7th, saying that as of the end of June, the global gold ETF had seen a net inflow for seven consecutive months, setting a historical record. In June, the total amount of global gold ETFs increased by 104 tons (about 5.5 billion US dollars), and the total positions reached a record high of 3,621 tons.

　　What is the relationship between gold ETF and gold price?

　　Liu Dongbo explained that the domestic gold ETF investment target is mainly the AU9999 gold spot contract listed on the Shanghai Gold Exchange. The ETF trend is highly consistent with the domestic gold price, and it is a relatively low-cost, transparent and efficient gold investment tool.

　　"I have been trading stocks. I don’t understand the gold ETF. Can gold stocks always follow?" Some investors asked.

　　Affected by the upward price of gold, the gold concept stocks in the A-share market rose sharply on the 9th. More than ten stocks including Zijin Mining, Chifeng Gold, Yuyuan Shares and Yuancheng Gold have daily limit.

　　"However, gold stocks are different from physical gold assets!" Liu Dongbo suggested, "Although the rise of gold stocks often benefits from the strength of gold prices, it has a low correlation with gold prices, and it is necessary to track the fundamentals of various gold companies, making trading more difficult and price elasticity higher."

　　If you don’t buy and sell, will the gold recycling business be hot?

　　"There are thresholds for stocks and gold ETFs. Can’t I save some gold jewelry?" Miss Liu wanted to buy some physical gold in March, but because gold was at a high price at that time, she didn’t buy it. "I regret it now and want to buy a gold bracelet, but now the price of gold is higher."

　　On the 9th, the data of China Gold showed that the price of investment gold bars was 417.8 yuan/gram, craft gold bars were 427.8 yuan/gram, and high-end craft gold bars were 498 yuan/gram.

　　The gold price of jewelry brands is higher, and Chow Tai Fook’s quotation is 529 yuan/gram as of 13: 41 on the 9th. The gold price of Lukfook Jewelry on the 9 th was also 529 yuan/gram; The staff in Zhou Shengsheng said that the price of pure gold jewelry was 431 yuan/gram, and that of pure gold tablets was 512 yuan/gram.

　　Data Map: In a gold shop in Taiyuan, Shanxi, employees display gold ornaments. China News Service reporter Zhang Yunshe

　　"Looking at the newly paid salary, it suddenly doesn’t smell good. Now this price is not as good as selling jewelry that was not often worn before. " Miss Liu said.

　　The gold recycling business is really likely to heat up. Some media reported that "the price of gold has risen, and the business volume of gold recycling has increased significantly." Zhongxin. com called a number of gold shops and jewelry stores and got a reply that the number of people consulting gold recycling business online and offline has indeed increased to a certain extent.

　　"Now gold recycling can give 390 yuan/gram, which is the highest in nine years." A person in charge of a gold shop said that the recovery price of 99.9% of Au at the beginning of the year was 320 yuan/gram, and last year it was 280 yuan/gram. Customers who started gold earlier are selling it now, and basically they can make money.

　　The next target of gold price: 2000 USD/oz?

　　"Everything just started, and gold is the real bull market." Some investors think it is not a wise choice to throw gold now.

　　Liu Dongbo believes that gold is one of the best performing assets in the mainstream assets this year. When the price of gold hits a new high, it is a reasonable choice for investors to take profits. "However, it is expected that there is still room for the gold price to rise, and investors can choose to sell it in batches."

　　"The next goal of gold is $2,000 per ounce!" At present, many mainstream investment banks predict that the price of gold will hit a record high in the coming months.

　　A few days ago, Goldman Sachs raised its gold price forecast for the next three months, six months and 12 months to $1,800/ounce, $1,900/ounce and $2,000/ounce respectively, compared with $1,600/ounce, $1,650/ounce and $1,800/ounce respectively.

　　In addition, Citigroup analysts recently raised the gold price forecast for the next three months to $1,825 per ounce, and predicted that it would break through the $2,000 per ounce mark in early 2021.

　　Data map: RMB and USD. Zhongxin. com reporter Li Jinlei

　　Liu Dongbo said that the international gold price hit a record high of $1,921 per ounce in 2011, and then hit the $1,800 per ounce mark three times in 2011-2012. At present, after the gold price breaks through the important point of $1,800/oz, there is hardly much resistance above. If the gold price can consolidate and stand firm at $1,800/oz, it may be only a matter of time before it hits a record high in the future.

　　"As for how high it can be achieved in the future, it depends on the strength of the Fed’s follow-up policies and the impact of global uncertainties."

　　So, do you choose to sell the gold jewelry at the bottom of the closet or not? (End)