The bank's gold recycling business has reached a peak, and the recent volatility of gold prices has brought challenges to the investment market

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China Research Network

Gold prices have indeed fluctuated recently, and there has been a pullback on the basis of the previous rally. This price movement has not only affected the sales of gold jewellery stores, but also triggered a boom in the gold recycling business of banks.

In a gold jewelry store in Nantong, Jiangsu, Zhao Jing, a salesperson, said that the current gold market is not bad, and the price has risen compared with the previous year, and the price per gram is basically a little more than 700 yuan. This price change attracted a large number of customers to buy gold jewelry, and some even took old gold jewelry to inquire about buyback business.

At the same time, the bank's gold recycling business also ushered in a peak. A citizen in Nantong, Jiangsu Province, made a profit of nearly 140,000 yuan by selling 250 grams of gold, with a yield of more than 30%. This high yield has attracted more people to choose to monetize their gold.

In response to the surge in customers, some bank branches have already taken measures. For example, the Nantong branch of the Bank of China has set up a special gold repurchase point and increased the number of staff dedicated to the gold repurchase business. The business department of Bank of Communications Beijing Branch has also increased the flexible window and consultation telephone number for gold repurchase to avoid customer waiting and facilitate customer consultation.

Overall, the recent fluctuations in gold prices have brought certain opportunities and challenges to the investment market. For investors, it is necessary to pay close attention to market dynamics and rationally analyze price trends to make reasonable investment decisions. At the same time, market players such as banks and gold jewellery stores should also strengthen service innovation and improve customer experience to cope with new opportunities brought about by market changes.

Note that while gold, as a safe-haven asset, may be favored by investors during times of economic uncertainty, its price is still affected by a variety of factors, including the global economic situation, monetary policy, geopolitics, and more. Therefore, investors should fully consider these factors when deciding to invest in gold and carefully assess their risk tolerance.

According to the display released by the China Research Institute of Puhua Industry Research Institute:

The future direction of gold prices is a complex issue that is influenced by a variety of factors, including the global economic situation, monetary policy, geopolitical events, market supply and demand, and investor sentiment. Therefore, it is quite difficult to accurately predict the future direction of the gold price.

However, we can analyze the possible changes in the price of gold based on some current market dynamics and trends. First of all, the global economic situation is one of the important factors affecting the price of gold. If global economic growth slows or there is a recession, then gold as a safe-haven asset may be favored by investors and the price may rise. Conversely, if global economic growth is strong, then investors may be more inclined to invest in other riskier assets, and gold prices may come under pressure.

Secondly, monetary policy is also an important factor affecting the price of gold. If the central bank implements an accommodative monetary policy, lowers interest rates or increases the money supply, it could lead to higher inflation, which in turn will drive up the price of gold. Conversely, if central banks tighten monetary policy, raise interest rates or reduce the money supply, then this could put pressure on gold prices.

In addition, geopolitical events can also have a significant impact on the price of gold. For example, a war, terrorist attack, or other political crisis can trigger panic in the market, causing investors to shift their money to safe-haven assets such as gold, which can push the price of gold higher.

Finally, market supply and demand are also one of the key factors that determine the price of gold. If the supply of gold decreases and the demand increases, then the price of gold is likely to rise. Conversely, if supply increases or demand decreases, then the price of gold may fall.

In summary, the future trend of gold prices is affected by a variety of factors and is difficult to predict accurately. Investors should pay close attention to market dynamics and trends, and make reasonable investment decisions based on their own risk tolerance and investment objectives. At the same time, it is also necessary to pay attention to the risks of investing in gold, including price fluctuations, market risks and liquidity risks. When making investment decisions, it is advisable to consult a professional investment advisor or financial institution for more detailed and accurate market analysis and advice.

Statistics from the China Gold Association show that in the first three quarters of 2023, the domestic raw gold output will be 271.248 tons, an increase of 1.261 tons compared with the same period in 2022, a year-on-year increase of 0.47%, of which 214.866 tons of gold from gold minerals and 56.382 tons of non-ferrous by-product gold will be completed. In addition, in the first three quarters of 2023, the gold output of imported raw materials was 96.277 tons, a year-on-year increase of 11.48%, and if this part of the imported raw materials was added, the country produced a total of 367.525 tons of gold, a year-on-year increase of 3.14%.

In the first three quarters, the national gold consumption was 835.07 tons, an increase of 7.32% compared to the same period in 2022. Among them: 552.04 tons of gold jewelry, a year-on-year increase of 5.72%; 222.37 tonnes of gold bars and coins, up 15.98% year-on-year; industrial and other gold was 60.66 tons, down 5.53% year-on-year.

In terms of gold prices, which investors are more concerned about, in the first three quarters, the downward pressure on the global economy continued to accumulate, geopolitical conflicts continued, and international gold prices fluctuated at high levels. At the end of September, as the market's expectations for the Fed to maintain high interest rates increased, the international gold price retreated sharply to the level at the beginning of the year, but remained at a historical high. At the end of September, the London spot gold fixing price was $1,870.50 per ounce, up 1.48% from the beginning of the year; Shanghai Gold Exchange Au9999 gold closed at 447.10 yuan / gram at the end of September, up 8.78% from the beginning of the year.

Recently, as international gold futures and spot prices hit a record high, domestic gold consumption has also been rising. New York gold futures soared to $2,152.3 per ounce, London spot gold hit an intraday high of $2,144.68 per ounce, and the price of some domestic brand gold jewellery was as high as 630 yuan per gram.

The rise in gold prices is affected by the Federal Reserve's monetary policy, the trend of the US dollar and other factors. According to the World Gold Council, global central banks bought around 800 tonnes of gold in the first three quarters, an increase of 14% compared to the same period last year, which was also one of the factors driving gold prices higher.

According to the report "Insights into the Gold Investment Needs of China's High-net-worth Individuals" released by the World Gold Council, "value preservation" and "safety" have become the primary goals of wealth management for high-net-worth individuals in mainland China. "For investors who have already allocated to gold, the potential future appreciation of gold, portfolio diversification and safe-haven functions are the top three factors driving their purchases. ”

Looking ahead to 2024, the World Gold Council believes that the possible intensification of geopolitical conflicts in some regions and the increase in gold purchases by many central banks will support the future trend of international gold prices.

As for the distribution trend of reserve assets in the next five years, most of the central banks interviewed at the forum believe that US dollar assets will decline, and the proportion of assets such as RMB and gold will increase.

The gold industry research report aims to start from the strategy of national economic and industrial development, analyze the future policy trend of gold and the development trend of the regulatory system, tap the market potential of the gold industry, and provide a vivid description of market changes from multiple perspectives such as industrial scale, industrial structure, regional structure, market competition, and industrial profitability based on in-depth research on key market segments, and clear development direction. Predict the future market outlook of the gold business to help clients clear the policy fog and find investment opportunities in the gold industry.

In the fierce market competition, whether enterprises and investors can make timely and effective market decisions is the key to success. The report accurately grasps the unmet market demand and trends of the industry, effectively avoids the investment risks of the industry, consolidates or expands the corresponding strategic target markets more efficiently, and firmly grasps the initiative of industry competition.

If you want to know more about the industry, please click on the release of the China Research Institute of Puhua Industry Research Institute

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