Recently, the international gold price has risen significantly, and the price of the domestic gold retail market has also risen, but the enthusiasm of consumers remains undiminished.
    This year, the price of gold rose more or less after the Spring Festival, and the price of gold ornaments fluctuated in 580 yuan/gram. In a department store in Yuexiu District, Guangzhou, the gold price of jewelry is listed at 603 yuan/gram, and the investment is 466.9 yuan/gram. There are still many customers in the store.    
    Guangzhou, Guangdong: Now the price of gold is at a high level, but you must buy gold when you get married. The budget is 20,000 to 30,000 yuan.    
    The sales manager of the shopping mall said that compared with the same period of last year, gold sales increased by 20% in the two months since July this year; As the price of gold has been rising all the way, preferential activities have also been launched to reduce 30 yuan per gram to attract more guests. In addition, many people have come to sell gold at high prices recently.    
    At present, the price difference between buying jewelry gold and investing gold is more than 100 yuan per gram, and the repurchase price is around 450 yuan/gram.  
   The rise of gold price is influenced by many factors.  There may still be the possibility of shock and strength in the future.   
    Recently, the domestic gold price can be described as "rising steadily". From the data point of view, since August, the international gold price has been adjusted back, while the domestic gold price has continued to fluctuate at a high level. Wind data shows that the closing price of COMEX gold futures (continuously) was last reported at $1,922.5 per ounce on September 8, down 1.06% from $1,943.0 per ounce at the beginning of August. In the same period, the price of SHFE gold rose by 2.26%. On September 10th, the basic gold price in China was 467.10 yuan/gram, which has also increased by about 2.17% since August.    
    Li Mingjin, a senior investment consultant of Jufeng Investment, said in an interview that the reasons for the continuous rise of domestic gold prices are not only affected by the relationship between supply and demand, but also by market expectations and other factors. At present, the market expects the Fed to raise interest rates to come to an end, and it is unlikely that the US dollar index will continue to strengthen in the future, which will help the gold price to rise in the afternoon, thus affecting the domestic gold price.    
    Liu Siyuan believes that the safe-haven nature of gold is also one of the main reasons for the rise of gold price, and the anti-risk demand has also caused the domestic spot price of gold to remain high. In addition, the recent depreciation of the RMB exchange rate has also made the domestic gold price slightly higher than the international market.
    "The demand for gold is becoming more diversified, mainly composed of gold jewelry demand, investment demand, technology gold demand and central bank gold purchase demand." Rui Qiang, chief market strategist in Europe and Asia of the World Gold Council, said at the 2023 International Gold Industry Development Conference and the 16th Gold Festival in Zhaoyuan City that the demand for gold ornaments and technology gold benefiting from economic expansion is very important, accounting for 37% and 7% respectively; Investment demand accounts for 38%; The central bank’s demand for gold purchase is the growing theme of gold demand in the past few years, which is also one of the major changes taking place in the gold market.    
    On September 7th, the data of China People’s Bank showed that by the end of August, the gold reserves of China People’s Bank reported 69.62 million ounces, up 930,000 ounces from the previous month, which was the 10th consecutive month. According to the report released by the World Gold Council on September 8, in July, the global central bank’s net purchase of gold reached 55 tons, and the momentum of long-term gold purchase remained firm, and the global central bank’s "gold purchase fever" continued to heat up.    
    Looking forward to the trend of gold price during the year, Li Mingjin said that the important factors affecting the price of gold are the relationship between supply and demand, the financial environment and the US dollar index. At present, among the external factors, the Fed’s interest rate hike has come to an end, and it is unlikely that the US dollar index will continue to strengthen in the market, which is conducive to the price of gold. Next, it is more likely that the price of gold will remain volatile and strong.    
    At the aforementioned meeting, Rui Qiang also believed that gold has potential growth space in 2023. Under the general forecast that the US economy will experience a mild recession, the US economic growth will slow down and will turn into a technical recession at the end of this year. In this context, it is expected that gold will continue to be supported by bond yields dominated by range volatility and a weak dollar to some extent in the future. If the US economy deteriorates further, the demand for gold investment will be stronger, whereas if the US economy makes a soft landing or monetary policy becomes more radical, it will weaken.
   Small gram heavy gold products are popular   What risks need to be guarded against?    
    Recently, many gold jewelry brands have begun to launch small weight products such as "mini gold", "Jin Doudou" and "golden melon seeds". So, why are young people keen on saving "Jin Doudou"? What risks do you need to guard against when buying such goods?    
    When the reporter searched social platforms, he found that many netizens took photos or shared their own small grams of heavy gold, namely "Jin Doudou", and some people saved "Jin Doudou" which was already full of transparent glass bottles. The comments in the comment area that "it is better to save money than to save gold beans" and "it is better to buy gold beans than to buy funds" are highly praised, and saving "Jin Doudou" has become a popular financial management method for young people.  
    According to the White Paper of China Gold and Jewelry Consumption Survey in 2021, customers aged 25-35 account for more than 70% of the consumers in gold shops. Among them, e-commerce platforms have become an important channel for young people to buy gold. After the popularity of Xiaokezhong gold products, many jewelry platforms have launched "Jin Doudou" and "Golden Melon Seeds" in official flagship stores opened by major e-commerce platforms. According to the data of the National Bureau of Statistics, from the product category of gold jewelry consumption, consumers are more inclined to buy light weight products, and the sales volume of products priced by weight is significantly higher than that of products priced by pieces, and the investment and consumption of physical gold continues to grow rapidly.    
    Whether it’s a 1-gram "Jin Doudou" or a large-gram-weight gold bar or brick, if consumers buy it for investment purposes, they need to pay attention to avoid risks. Dong Ximiao, chief researcher of Zhaolian, said that the price of gold fluctuates greatly due to many factors, so it should have certain risk avoidance ability.    
    Dong Ximiao said: "Young people like to invest in gold and buy small gold ornaments, which is of course possible. However, we should pay attention to the price of gold, which is influenced by some factors in the international market and fluctuates obviously. Chinese often thinks that gold is an unchangeable product for preserving value, but it is not necessarily so. The gold price market will fluctuate, and the fluctuation is still relatively large. We should pay attention to avoiding such risks. That is, the investment environment, you have to understand some characteristics of price fluctuations in the environmental market and the risks it has to invest. "    
    So, how to avoid the risks in investment? Dong Ximiao suggested that first of all, you should have basic knowledge of investment and financial management, and it is best to find a suitable investment method.    
    "Investment and financial management is based on personal risk preference, investment ability, investment experience and other factors. Everyone should do their own asset allocation, and no investment method is suitable for all people. Have basic knowledge of investment and financial management, especially precious metals investment. When we invest, we must buy products that we know, and if others buy them, you also buy them. This is very undesirable. Buying gold at home is actually inconvenient for you as an investment, and there are still problems in preservation. Nowadays, young people’s investment is easy to have a’ herd effect’. It is not particularly desirable for everyone to buy what they buy. We must choose the way that suits us. "    
    Source: CCTV Finance, Securities Daily, Yangguang.com.