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It's sold out! 600 yuan per gram! Why is the spread between domestic and foreign gold so large?
Sep 18,2023
The volatility of the gold market in the past year has been stirring everyone's heartstrings, especially some investors who put money into gold, or some people who want to buy jewelry at the lowest price of gold.
At present, domestic gold has reached the highest point in history. As of the close of trading on September 14, Shanghai Gold closed at 472 yuan/gram, up nearly 30 yuan/gram from June.
Gold prices rose significantly in the short term
The domestic gold price surge, the first is affected by demand. Recently, it is the Mid-Autumn Festival National Day and other holidays, which can be said to be the peak period of gold demand.
According to data, the national gold consumption in the first half of this year was 554.88 tons, an increase of 16.37 percent over the same period last year. Among them, gold jewelry was 368.26 tons, an increase of 14.82 percent over the same period last year, accounting for more than 60 percent of the total consumption, while gold bars and gold coins reached 146.31 tons, an increase of 30.12 percent over the same period last year.
With more people buying and more demand, the price of gold will rise. Recently, the domestic gold price continues to fluctuate at a high level, and the retail price of gold jewelry in many brand gold stores has reached 600 yuan/gram.
From the perspective of reserves, data disclosed on the central bank's official website showed that China's gold reserves were reported at 69.62 million ounces (about 2165.43 tons) at the end of August, an increase of 930000 ounces (about 28.93 tons) from the previous month. This is also the tenth consecutive month that the central bank has increased its gold reserves.
In addition, the rise in domestic gold prices is also related to the RMB exchange rate.
As the domestic economy is steadily recovering and the yield gap with other economies, especially the United States, is widening, the RMB has depreciated. The devaluation of the renminbi usually has a positive impact on domestic gold prices, pushing up gold prices.
Gold has risen very sharply. For those who just need it, they must buy it, but many people who are not just in need are also buying it.
But if it's for investment purposes, it's not the right time to go after gold. Now gold is at an all-time high. Although the current momentum is very strong and may continue to rise in the short term, no investment product will rise forever.
If it goes up a lot, it will naturally go down. And if you choose to get on the bus in a high position, you have to be psychologically prepared.
Large price difference between domestic and foreign gold
On the 15th, the price of gold in my country was 476.9 yuan per gram, while the price of gold in London in the United States was 67 US dollars per gram, which is 445.31 yuan per gram. One gram of gold is 31.59 RMB short, which is a very different price.
There is a very strange phenomenon. As one of the largest exporters of gold in the world, China also has a price that other countries cannot reach. This undoubtedly makes many Chinese consumers feel depressed.
In fact, this is also due to China's unique national conditions and a number of factors. The price of gold in China is generally quite high. The first aspect is due to my country's higher import tariffs and some tax policies.
China's import of gold tariffs, while the consumption of gold to pay consumption tax, the two parts of the reasons for the addition of the cost of China's imports of gold, this tax also led to the price of imported gold.
Secondly, it is because of China's high level of supervision and standards for the gold market. China implements very strict and strict regulatory requirements on the gold market, which is actually to ensure a stable operation of China's gold market, as well as to ensure the authenticity of gold quality out of the mentality of being responsible to consumers.
Because of the requirements of this part, China's gold jewelry has higher certification and standards, which may affect the final price because of these additional supervision and standards.
Third, it is because of our exchange rate and foreign exchange control requirements.
China's RMB exchange rate is managed by the Chinese state, which may lead to fluctuations in the exchange rate between RMB and other foreign currencies, thus affecting the cost price of gold.
In addition, China's foreign exchange control also restricts the free flow of foreign exchange, resulting in exchange rate fluctuations, thus affecting the price of gold.
Fourth, because of the unique historical position of gold in China, Chinese people seem to like to buy gold. For example, when some people are rich, the first thing is to buy gold.
This supply-demand relationship can also have an important impact on the price of gold, and if demand exceeds supply, then the price will rise.
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