The price of gold fell sharply when gold and silver investment

Since mid-April, gold prices have plummeted by more than 200 US dollars in two consecutive trading days. The sudden and significant drop in the price of gold has triggered an upsurge of gold buying in the Asian region. Before and after the May 1st Festival, coastal cities such as “Northern Guangshen” and “Hong Kong” have been triggered. The jewellery, jade and gold jewelry counters were crowded with people. The upsurge of gold buying represented by the middle-aged and elderly women in the country once caused Goldman Sachs and other Wall Street investment banks to withdraw their gold bearish reports, creating the myth of “Chinese Auntie” and rapidly becoming a popular word for the public.

According to the “April 2013 Consumer Goods Market Situation” released by the National Bureau of Statistics, China’s total retail sales of consumer goods in April was 1.76 trillion yuan, a nominal increase of 12.8% year-on-year. Among them, the biggest increase in sales of goods is gold and silver jewelry, the monthly sales of 30.3 billion yuan, an increase of 72.2%. According to the statistics from January to April, the sales volume of gold and silver jewellery was 106.5 billion yuan, a year-on-year increase of 29.5%. This growth rate was second only to commercial housing. The increase in sales of gold, silver and jewellery in April was markedly unusual, which is undoubtedly due to the strong sweeping action of “China Auntie”. It can be seen that whether it is the preference for gold and silver jewelry, or the purchase of gold bars from the perspective of investment, the value of gold in people’s hearts is already deeply entrenched. The investment gold and silver market is the time.

However, since May 9th, international gold prices have returned to the downtrend channel, setting a rare “7 consecutive yin yang”. It is difficult for the Chinese mothers’ buying rush to reverse the major trend of falling gold prices. The underlying reasons for the recent sluggishness of the gold and silver market are as follows: 1. A series of economic data released recently by the United States shows that the US job market, real estate market, retail sales and manufacturing markets have shown signs of sustained recovery, causing the US stock market to Both the US dollar index continued to strengthen, and market liquidity flows into high-yield stocks such as the stock market and the US dollar. Gold's expected rate of return fell, its position in the portfolio of assets declined, and precious metals priced in US dollars were severely weighed down; 2. Global inflation expectations declined The anti-inflationary effect of gold has not been shown; 3. The Fed's recent release of signals from the Fed officials that will reduce the scale of QE has a direct impact on the price of gold.

In the future, the U.S. economy is expected to enter a faster growth channel. The long-term trend of gold and silver is still unsatisfactory. How can the quilted aunts avoid the risk of falling gold and silver prices? In addition to the diversification of asset allocation, it is recommended to select an investment product that can hedge against gold and silver, such as the Tiantong silver product of the Tianjin Precious Metals Exchange. When gold and silver prices fall, investors can hedge against short gold and silver. Physical risk of gold and silver losses.

In order to let investors familiarize themselves with the advantages of short products in Tianjin Precious Metals Exchange, and to accumulate rich investment experience, Tianjin Golden Star Precious Metals Trading Co., Ltd. will soon launch the “Golden Star Cup” solid silver competition to seek out technical masters. Contest prizes are generous: Mercedes-Benz cars, gold bars, silver bars, cash, etc. are welcome to register.