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Since April, gold prices have soared, renewing their biggest gain in 12 months. The LBMA gold price in London witnessed this feat again in early trading, and on April 19, spot gold stood at $2,400 an ounce again, up as much as 0.94% on the day. At the same time, spot silver also rose more than 1% during the day and is now trading at $28.51 an ounce.
Affected by the international gold price, in September last year, the gold price of domestic brand jewelry exceeded 600 yuan/gram, and now it has soared to around 730 yuan/gram, which can be described as a rapid advance.
The People's Bank of China's strong buying streak continues. China's official gold reserves rose for the 17th consecutive month, rising by 5t to 2,262t in March.
Financial analyst and statistician Jim Wiley believes that defaults on US government debt and US Treasury bonds, as well as strong price inflation, are the reason for gold to continue to rise.
The World Gold Council believes that strong global investment demand for gold, heightened geopolitical risks and rising investor futures market positions are all drivers of gold's strength.
Against this backdrop, the upward momentum in gold prices remains strong. For investors, changes in the gold market will undoubtedly bring new investment opportunities.
As an important precious metal, gold plays an important role in the financial market. It is not only a safe-haven asset, but also an investment tool. The price of gold is affected by a variety of factors, including the global economic situation, geopolitical risks, monetary policy, and investor sentiment. As a result, changes in the gold market often reflect global economic and political developments, making them the focus of attention for investors and policymakers. At the same time, gold is also regarded as an asset with the potential to preserve and appreciate its value, attracting the attention of investors and capital inflows.
The Nevada gold mine is the world's largest gold mine
In 2022, the world's top 10 gold mines produced a total of 340.71 tonnes of gold, accounting for about 9.39% of global gold production. These mines are located in a number of countries, with the Nevada Gold Mine being the world's largest single gold producing complex and comprising the mining operations of Carlin, Cortez, Turguoise, Long Canyon and Phoenix, which account for 2.37% of global production. The Grasberg mine in Indonesia and the Muruntau mine in Uzbekistan account for 1.41% and 1.33% of the global mine supply respectively, and the three major mines together account for 5.1% of the global gold supply. The 4th to 10th ranked gold mines together accounted for 4.29% of the total production.
Consumer demand for gold coins and bars is growing rapidly
In terms of gold investment demand, between 2019 and 2022, consumer demand in mainland China showed a trend of first increasing and then declining. In 2021, China's consumption of gold coins and bars reached 312.86 tonnes, close to the peak of recent years, but in 2022, the overall demand for gold coins and bars fell to 258.94 tonnes due to factors such as the continued high domestic gold price and exchange rate fluctuations.
In the first three quarters of 2023, the high volatility of gold prices attracted high attention to physical gold investment, with bar and coin consumption at 222.37t, up 15.98% year-on-year.
Guangdong gold enterprises are mainly registered in Shenzhen and Guangzhou
As of December 7, 2023, there were 48,493 gold enterprises in Shenzhen and 20,183 in Guangzhou.
Goldman Sachs predicted that gold prices would continue to rise, saying gold was in an "unshakable bull market" and raised its year-end price target to $2,700 an ounce. They noted that the main reason for gold's rally since mid-2022 is new physical supply factors, in particular accelerated purchases by emerging market central banks and an increase in retail buyers in Asia. In addition, the US election cycle and fiscal risks will also continue to support gold prices.
Note: This article is for content purposes only and does not constitute any investment advice.
Prospective Economist APP Information Group
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