Gold Prices Fall To Test China'S Aunt Gold Investment Needs To Wait And See

The near future,

Once the weak rebound pattern was reversed, the price fell from 241 yuan / gram for several days. Then, the international gold price dropped to $1131.85 / ounce, and it quickly hit a new low since October 2010. At the same time, the price of gold ornaments and investment bars in the domestic market has also been lowered.

As a result, the "Chinese mother" who swept the gold last year once again encountered "deep set".

In the industry view, the trend of gold prices in the medium and long term continued to decline is inevitable. If the investors are still trying to solve the problem, then what should Chinese mothers do?

A minimum of 290 yuan per gram a year ago.

The purchase of physical gold bars, at some gold shops or pawnshops, has only bought a repurchase price of 200 yuan per gram. Now, the gold bars in the hands of "Chinese mother" have already seen a significant loss.

In November 11th, reporters visited several gold stores in Taiyuan, found that almost all the gold shops including China gold, Lao Fengxiang, Zhou Dafu and so on. The price of thousands of gold ornaments was hovering around 300 yuan per gram. Most ornaments did not need to calculate the work cost when buying, and some gold ornaments also had a certain discount on the basis of the original price.

In some small gold shops, the price of gold jewelry has even been reduced to around 260 yuan.

"When the price was the highest last month, the price of 1000 feet was still around 360 yuan per gram, and only about 60 yuan per gram in a month."

In a Chinese gold store in Liu Xiang, a shop assistant told reporters that the price of the thousand foot gold in the store was now adjusted almost every day, and once fell to less than 300 yuan per gram, although the price had risen slightly in recent days, the rising trend was still uncertain.

At this point, many buyers seem more willing to wait for the gold price trend. Therefore, there are not many gold buyers in Jindian.

At the same time, the price of most gold shops' gold bars has been adjusted to around 250 yuan per gram. In many banks' financial counters, the price of gold products has also been affected, and the price of some gold bars in banks is even less than 230 yuan.

In this regard, a gold shop official told reporters that gold prices fell mainly for two reasons. On the one hand, the US economy and employment continued to warm up, coupled with the Federal Reserve's announcement of the end of monetary easing at the end of October, and expected to raise interest rates next year, the continued appreciation of the dollar, resulting in the gold hedging role has been abandoned, on the other hand, the Bank of Japan decided to overweight quantitative easing monetary policy, and then push the strong rise in the dollar index, bringing gold prices continued to decline in recent days.

According to the analysis, in mid 2013, the price of gold dropped from $more than 1900 to $1700-1800 an ounce, triggering the "Chinese aunt" grab gold tide. At that time, the price of gold in China was around 290 yuan per gram. According to the price in April 2013, the value of gold bars and gold ornaments had dropped by nearly 20%.

Many gold rush investors can not make profits, or even break even.

It takes time for the "Chinese mother" to be undone.

In the past two days, the performance of the US economic data has been mixed. This has made the US dollar index down slightly after a slight rush, and thus supported the gold price rally overnight. The international gold price once hovered around the US dollar / ounce, but in the view of the industry, the continued low price of gold in the medium and long term will be an indisputable fact. During the next two months, the gold price will continue to oscillate between 1180 US dollars and 1200 US dollars / ounce.

There is a futures industry analysis, gold hit a new low in 2010, has gradually opened up further downward space, with the continued strength of the dollar, dollar denominated gold for other currencies, the formation of a potential price increase, which hindered other investors to buy gold; in addition, because gold does not pay interest, as interest rates rise, compared with bonds, the attractiveness of gold is also declining.

Some people in the industry even expect that gold investors are not a reverse investor or a cannon fodder. Therefore, the current investment strategy is quite critical.

However, there are also people in the industry who believe that "China's aunt" is only a Book loss. Most of the gold in their hands is not for short-term speculation, but for family asset allocation. "As long as they do not purchase leverage, there will be no real losses, and they can be recovered slowly with time."

"Chinese mothers" are usually unwilling to be indebted, have a special preference for gold, and are willing to pass gold, especially gold jewelry to future generations.

For the problem faced by "China's mother", the futures industry said that it would take some time for some investors to solve the problem. It would take 5 to 10 years. According to the analysis, gold prices still have room to fall in the medium and long term, but investors can hedge risks through other pactions, such as spot silver.

In the next 10 years, the price of gold will probably be bottomed up and rising. The time of the Federal Reserve's monetary policy will be the key point.

At present, the physical gold market is still weak, therefore, "do not pick up the flying cutter" has become the consensus of the market.

It can be seen that the vast majority of gold investors are now very cautious, therefore, the industry suggested that at present is not a good time to bargain, investors can consider other investment varieties.