At the end of the year, the price of gold continued to rise, and the gold market was in full swing.
In early December, the international gold price once stood above the $2,150 per ounce mark, hitting a record high. At the same time, the gram price of gold jewelry exceeded 600 yuan, and even reached 630 yuan.
In the past period, the capital market has fluctuated and adjusted, and gold has also become a "conspicuous bag" for investment.
The World Gold Council pointed out that in the first ten months of 2023, it rose by 16%, outperforming investment categories including the S&P 500 and crude oil, compared with the loss-making CSI 300 index and ChiNext index.
Ankai, head of global research at the World Gold Council, said gold is a reserve asset with the advantages of safety, liquidity and profitability. Strong demand from central banks is also an important structural shift in the global gold market. According to the World Gold Council, gold accounts for 15% of the total reserves of central banks surveyed, and more than 70% of central banks surveyed expect global gold reserves to increase over the next 12 months. Inflation, geopolitical risks, sanctions risks, and the multipolarity of the global reserve currency system are the main drivers of central bank purchases. This trend is likely to continue for many years and is expected to further support gold's performance on a traditionally driven basis.
Since the second half of 2019, the global gold price has entered an upward channel. What will be the future of gold prices?
Guohai Securities Research Report pointed out that the turbulence of the world pattern highlights the value preservation attribute + process innovation, and gold consumption continues to be high. The high prosperity of gold is driven by both internal and external factors, the external epidemic and the turbulent world pattern of the international situation stimulate gold investment and consumption demand, the internal gold process is upgraded, and the volume and price of ancient gold and hard gold products are driven by the rise, and the superimposed gold price continues to rise, gold jewelry is a rare consumer goods category that has grown against the trend in the past three years.
In addition to the expectation of a pause in interest rate hikes by the Federal Reserve and the impact of geopolitical conflicts, the continued buying by central banks is also one of the factors driving gold prices higher.
It is worth mentioning that the mainland's official gold reserves have increased for 13 consecutive months. According to data released on the official website of the State Administration of Foreign Exchange, as of the end of November, among the mainland's official reserve assets, gold reserves were reported at 71.58 million ounces, an increase of 380,000 ounces from the previous month.
According to the report "Insights into the Gold Investment Needs of China's High-net-Worth Individuals", in the past few years, after experiencing tail risk events including the Sino-US trade war, the stock market decline, and the Russia-Ukraine conflict, the mentality of "seeking stability" of mainland high-net-worth individuals has become more and more obvious. Since the beginning of this year, the outbreak of systemic risk events in the banking sector in Europe and the United States and the outbreak of the Palestinian-Israeli conflict have made investors increasingly worried about the stability of their portfolios. "Value preservation" and "security" have become the primary wealth management goals of high-net-worth individuals in mainland China. As an asset with stable and long-term value, gold ranks among the top three wealth inheritance options among high-net-worth individuals.