Source: Photo.com
Since March, the "gold fever" has been heating up, and the gold recycling market has also become active, with many people taking advantage of the high gold price to sell idle gold products for cash.
On April 24, the international gold price fell for two consecutive days, and the price fell by nearly 20 yuan per gram, which attracted widespread attention. According to reports, after the fall in gold prices in the past two days, the number of people who inquired about gold selling has increased significantly, but the actual trading volume has decreased.
In addition, entering April, the listing of newly released gold commodities on Xianyu increased by nearly 40% month-on-month. Data provided by another Hongbling company shows that second-hand gold trading on the platform has risen significantly in recent months, especially in March this year, with purchases increasing by 62% month-on-month and the number of items on the shelves increasing by 118% month-on-month. Overall, gold purchases increased by 59% QoQ in Q1, the number of items on shelves increased by 55% QoQ, and the average selling price of gold increased by 45% QoQ in Q1.
Mr. Huang, a gold recycler in Wuhan, said that the price of gold has risen since they recycled gold from a low price. Now that the price of gold has fallen from a high level, if there is a stockpile in hand, a gram will lose about 20 yuan, and 1 kilogram of gold will lose 20,000 yuan in two days, but in his opinion, it is normal for gold recyclers to rise and fall.
"I think this kind of loss is acceptable, there is a profit when it rises, if it falls, you have to take the risk, in the long-term rise and fall of gold prices, a small fluctuation of two or three yuan per gram per day is more common, and there are fewer large fluctuations like this, and there may only be a few times a year. He said.
Growth in China's gold consumption
In the first half of 023, the national gold consumption was 554.88 tons, a year-on-year increase of 16.37%, mainly driven by the growth of gold jewelry, gold bars and gold coins, and industrial and other gold consumption fell by 7.65% year-on-year.
Shandong Province is far ahead in terms of gold reserves
The regional distribution of gold resources in mainland China is uneven, and it has the characteristics of spatial concentrated distribution. According to the statistics of the Ministry of Natural Resources, the top 10 provinces in mainland China in terms of gold reserves in 2022 are: Shandong, Gansu, Yunnan, Jiangxi, Xinjiang, Inner Mongolia, Henan, Heilongjiang, Tibet and Guizhou, of which Shandong Province's gold reserves far exceed those of other provinces, at 967.9 tons, accounting for 31% of the country's gold reserves.
Guangdong and Beijing have the highest levels of capitalization
From the perspective of capitalization, the current enterprises of China's gold capitalization (with financing information and listing information) are mainly distributed in Guangdong, Beijing and Jiangxi. As of December 7, 2023, there were 338 existing and operating capitalized enterprises in Guangdong, 117 in Beijing and 82 in Jiangxi.
Note: The above-mentioned enterprises are existing and active enterprises.
Senior gold analyst Mark Mead Baillie said that the perfect way to put it is still that gold is very overbought in the short term, but it is still significantly undervalued in the long term. Mark said given that the recent resilience of the gold price comes from the new Middle East conflict, and that it has been proven over the years that gold's geographically induced price surge will be short-lived.
In their latest report in early April, Citi analysts predicted a price target of $3,000 for gold over the next 6-18 months. With global debt levels ballooning to $315 trillion, retail investors, family offices and the very wealthy are spurring enthusiasm for gold, analysts said.
Note: This article is for content purposes only and does not constitute any investment advice.
Prospective Economist APP Information Group
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