Ordinary People Borrow Gold To Avoid The Risk Of Shrinking Assets

At 15:30 on March 24th, Shanghai

Almost at the same time, on the counter of the China Gold Group on Nanjing East Road in Shanghai, a citizen took out 1.88 yuan of cash, and bought 3 investment gold bars of 20 grams at once.

The young saleswoman said this was very common in the past few months.

This is just a microcosm of the increasing enthusiasm of domestic investors to "fry gold".

With high inflation pressure and overseas

In February, China's CPI rose 4.9% compared to the same period last year.

The Agency predicted that CPI could rise more than 5% in March, while inflation pressure would fall back in the second half.

Although the central bank has raised interest rates three times since last year, the situation of "real negative interest rates" in the short term is still difficult to change.

Under this background, gold has entered the view of more and more ordinary investors with its characteristics of maintaining value and increasing value.

In fact, there has been a sustained growth in demand for gold in the world.

Driven by hedge funds, the recent spot price of international gold has been above $1430 per ounce.

According to the prediction of Gold Fields, a well-known international gold producer, gold price will break through the $1500 / ounce mark in the year.

Yi Fang Da Fund Management Co., Ltd. experts believe that the strong earthquake led to the fall of the Japanese economy and will eventually drag on global economic growth, thus forming a gold hedging demand.

In the medium to long term, the post quake reconstruction will increase the demand for money in Japan, and the return of the yen will pressure the US dollar to form a factor that stimulates the rise of gold prices.

Higher gold prices have benefited gold securitisation investment products.

Data show that as of March 17th, the first gold fund in the mainland market, the gold fund has become the most profitable QDII product this year.

The "money making effect" of gold investment promotes the running of all kinds of capital, and ordinary people begin to pay more attention to the investment value of gold.

Zheng Shen, a citizen of Shanghai, originally planned to buy a house with a mortgage of about 1000000 yuan. However, the introduction of the "restriction order" in the property market changed his plan.

"I have been looking for a way to secure and stabilize the stock market than the stock market.

Now it seems that gold is a good choice.

Zheng Shen said.

There are many people who share similar views with Zheng Xin.

According to the news from Yi Fang Da fund management company, since the first active management gold fund in the mainland market was officially launched in April 1st, the company receives many calls every day, asking how to purchase the gold fund.

Focusing on the online sale of jewellery, the "nine drill net" has also been selling gold products in the near future.

After the lunar new year, the sales volume of gold is more than 1 kilograms. The total sales volume in March is expected to double on last month.

Nine drilling CEO Lin Yi revealed that with the help of the "physical gold futures" products purchased on the same day and 7 days later, the gold price of nine drilling would be reduced by tens of dollars more than that of general gold stores.

The obvious price advantage has attracted many "smart" investors.

It is worth noting that in the view of the world gold association, the international gold spot price, which is constantly updated, does not possess the statistical characteristics of past bubbles.

In its ten year golden bull market analysis, the World Gold Council said that gold prices are still in line with long-term average through comparison with different series of assets, such as hard currency and stock index.

In the long run, the strength of emerging markets, the fundamental pformation of central bank initiatives, and the revival of gold demand by industry will be the key factors for the stability of gold market demand.

The expectation that gold prices will continue upward will also allow more and more Chinese people to incorporate gold into long-term investment plans.

Zheng Shen said that he and his wife are going to take part of their income from each year to buy investment gold bars and financial products such as gold related funds.

"For ordinary investors, this may be the most effective way to prevent personal assets from shrinking."

Zheng Shen said.