Since March this year, gold prices have hit new highs. As of Friday's close, COMEX gold rose 1.76% to $2,349.1 an ounce, London spot gold rose 1.77% to $2,329.57 an ounce, and the domestic gold price AU9999 on the Shanghai Gold Exchange also closed at 537.50 yuan a gram. At present, the retail price of pure gold jewelry of many domestic brands has exceeded 700 yuan per gram.
As the price of gold continues to rise, the repurchase of large quantities of gold raw materials offline has become the "highlight", and many "big gold hoarders" have chosen to sell at the high price of gold.
While offline gold raw material repurchase is hot, many gold stores have also opened an online repurchase model. The person in charge of an online gold repurchase business said that consumers will be able to realize the rapid realization of gold by using subsidized coupons, free mailing, and preferential handling fees, among which the maximum amount of online gold recovered in a single day has reached more than 3,000 grams.
"Now it's really one price a day. A seller in a gold store said, "The price of gold has risen too high, and they are all waiting and seeing." Some netizens also said: It has risen to the point that people can't understand it.
As the gold market continues to be hot, the performance of listed companies is also very encouraging.
On March 30, Sichuan Gold released its 2023 annual performance report. The company achieved operating income of 629 million yuan, a year-on-year increase of 33.13%, net profit attributable to the parent company of 211 million yuan, a year-on-year increase of 6.16%, net cash flow from operating activities of 306 million yuan, a year-on-year decrease of 20.00%, and an asset-liability ratio of 26.72%, a year-on-year decrease of 11.41 percentage points.
In the first half of 2024 results report released by Chow Tai Fook, revenue increased by 6.4% year-on-year to HK$49,526 million, and principal operating profit increased by 37.7% year-on-year to HK$5,989 million due to improved staff movement and retail activities in key markets. Among them, Chinese mainland turnover increased by 4.9% year-on-year at the same exchange rate, and mainland business accounted for 82.1% of the Group's turnover.
As of March 2024, 18 listed companies in the gold industry have disclosed their 2023 performance forecasts, and 12 companies have reported good results, accounting for 66.67%. Among them, Chaohongji expects that the net profit attributable to shareholders of listed companies will be 320 million yuan to 400 million yuan in 2023, a year-on-year increase of 60.7% to 100.88%.
According to the World Gold Council's Global Gold Demand Trends Report, China's domestic jewellery consumption reached a record high of RMB282 billion in 2023 and is forecast to remain strong in 2024.
In the view of some public fund people, the Fed's expectation of interest rate cuts, global central bank gold purchase demand exceeded expectations, geopolitical risks and other factors superimposed, resulting in gold prices hitting new highs. Gold reflects long-term inflation and over-issuance of credit money, and from the perspective of medium-term rhythm and cyclical fluctuations, the general rhythm of gold trends tends to be synchronized with the entire commodity cycle, acting as a "leader" in each round of commodity cycle.
They generally believe that the recent rise in gold prices does have a dual pricing factor of both capital and fundamentals. Gold more fully reflects the market's recent optimistic expectations for fundamentals. Under the continued influence of the above factors, there may still be room for gold prices to rise in the future.
In addition, public fund people also said that although gold is also facing risk factors such as speculative fund profit-taking, and the Fed's continued delay in interest rate cuts, it is difficult to reverse the long-term upward logic of gold. In the context of a clear medium- and long-term trend, it may be a safer choice to intervene in the event of an adjustment.
Author: Fang Ruoyuan
Editor: Li Ang
Producer: Wang Junji
Source: China Fund News, etc