The price of gold has made history again!
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On Monday (April 1) in the Asian market, the international spot gold price rose sharply, and the gold price continued to refresh its historical high, hitting a record high of $2259.63 per ounce on the same day.
Recently, the price of gold has continued to rise, refreshing record highs every day, and the price of domestic brand gold stores has approached 700 yuan/gram. Among them, the gold price of Chow Tai Fook has reached 688 yuan/gram (as of 2024/03/31).
2024/4/1Real-time gold price
What is it that makes the price of gold take the rocket?Is crazy gold still worth continuing to invest?Today, Mr. Xiaopai will talk to you about it~
Why gold prices continue to rise
As a safe-haven asset, the rise in gold prices has been affected by many factors. There are two important factors that have driven the strength of the international gold price in the near future:
First, the Fed's interest rate cut expectations have risen.
After an epic rate hike cycle of the previous two years, the Fed's last rate hike stopped in July 2023. With U.S. inflation coming down from its highs, the consensus is that the Fed's rate hike cycle may be coming to an end, after which it will move to rate cuts.
In general, a weaker U.S. dollar usually leads to an increase in the purchasing power of investors who hold other currencies.
Second, risk aversion has heated up due to international geopolitical tensions.
Last year's Russia-Ukraine conflict, the United States forcibly froze Russia's foreign exchange reserves of 600 billion US dollars, which hit everyone's confidence in dollar assets, and everyone was worried: Will it be me next?
Therefore, gold has become a reliable choice for central banks around the world due to its diversity of value preservation.
Source: The main considerations for central banks to hold gold
In addition, this wave of gold price rise, Chinese aunts have also contributed a lot.
According to the World Gold Council, China's gold consumption increased by 9% in 2023, with bar and coin consumption increasing by 16% year-on-year.
Last year, China's stock market was sluggish, housing prices continued to fall, and bank deposit rates hit record lows, and for most investors, gold seemed to be the only investment source to be trusted. Many investors have joined the team of buying gold beans and saving gold.
Due to the combination of multiple factors, a perfect storm was set off, and the price of gold repeatedly hit record highs, ushering in a golden age for gold.
Can you still buy gold now?
Seeing this, many investors who are still waiting and waiting want to ask: Is it still suitable to invest in gold now? Will it chase high?
London gold is the benchmark price of the global gold market, we can first take a look at the price trend of London gold in the past 20 years:
Source: Sina Finance
It is not difficult to see that we are at the highest price level in the history of gold in the last 20 years.
In addition, the pace of the Fed's rate cuts is fraught with uncertainty. If the actual rate cut in the United States falls short of market expectations, the excessively high gold price may usher in a sharp correction.
Although gold is naturally a currency, at this juncture, many people who bought gold in the early days want to sell it at a high price for a profit. Therefore, it is really difficult to judge whether buying gold at this time is a high-level order or a bottom-copy.
If you don't buy gold, what's better to buy?
Chinese, who love to save money all their lives, never admit defeat, and in the past few years, the amount of deposits in the mainland has repeatedly reached new highs.
Before 2018, the new deposits of mainland residents remained at about 4-5 trillion yuan per year.
In 2020, new deposits reached 11 trillion yuan.
In 2022, it will reach nearly 18 trillion yuan, and in 2023, it will reach nearly 17 trillion yuan.
Although people's deposits are increasing day by day, risk appetite continues to decrease, and many people prefer to keep their funds in a safe place, just as most people buy gold not to pursue income, but to buy peace of mind, which is also the essence of our financial management.
Source: People's Bank of China
Therefore, for most people, financial management is nothing more than two needs:
· Money that may be used in the short term: low risk, high flexibility, some interest, anti-inflation;
· Money that cannot be used for a long time: the income is relatively stable, and strive to maintain and increase the value.
In addition to gold, there are many wealth management products that can meet the above two needs of most investors:
IMF funds
The most common money market funds are Yu'e Bao and WeChat's change pass, as well as the flexible financial management options in the bank APP, with an annualized return of about 2%.
The advantage of money market funds is that they have high liquidity, they can be deposited and withdrawn at any time, and they can be received immediately, and it is very convenient to buy money market funds for short-term use.
Certificates of deposit, treasury bonds
The money that cannot be used in the short term can be placed in treasury bonds and large certificates of deposit, and the interest rate is about 2%~3%.
The advantage of this type of wealth management product is that the interest is determined, the centimium is not bad, and the money can also be withdrawn by giving up the interest or transferring it to others.
Savings insurance
If you have a little money in hand and want to make long-term plans, such as pension, children's schooling, etc., you can actually consider savings insurance with stronger security and good long-term returns.
This product writes the income into the contract and is protected by law, and according to the contract, it can have a compound interest income of nearly 3.0% in the long term, which is considerable.
That's all for today's sharing.
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