JamesSteel: When Precious metals market observationI just graduated in the 1990s, I worked for another institution to research precious metals. At that time, the price of gold had been tepid, falling year by year. I once wondered if I was in the wrong line. But after I researched deeply, I have been bullish on gold for many years.
However, the disadvantages of investing in platinum are also very prominent: firstly, platinum has not been regarded as a general equivalent in history, and its recognition as a safe-haven investment product is relatively low; secondly, platinum is more expensive, with higher investment thresholds, and higher transportation and storage requirements. Cost; third, the current shock wave of the international financial crisis is still continuing, gold as a global reserve asset is still strong, while platinum is more dependent on market demand and industrial demand, and its price risks further deviating from gold; fourth, gold , Silver investment is relatively mature in China, with many channels and wide coverage. However, most investors are not yet familiar with the new thing of platinum investment, and the acceptance remains to be seen.
Holmes pointed out that in emerging market countries, the amount of gold purchased for love has increased, especially in India, regardless of weddings, birthdays, or any religious holidays, gold can be used as a gift. Most people buy gold because of concerns about inflation, but the most important buying of gold today comes from buying for love.
The drop in gold and silver is closely related to the sharp drop in international crude oil futures prices. Manager Huang of the Retail Wealth Management Department of the Fuzhou Branch of Minsheng Bank stated that the International Energy Agency (IEA) announced on the evening of the 23rd that it would release 60 million barrels of strategic crude oil reserves in the next month in response to the reduction in Libyan crude oil production. Affected by this, the price of light crude oil futures for delivery in August on the New York Mercantile Exchange plummeted, reaching a minimum of $89.69 that night and closing at $91.02, a drop of 4.6%. The decline in crude oil prices led to a rebound in the US dollar index, and the cumulative increase in the US dollar index over the three trading days was about 1% yesterday. The drop in international crude oil prices will ease global inflationary pressures and weaken market risk aversion, putting pressure on gold prices.
In May of this year, gold sang a good show of rapid bottoming and raising: from the beginning of the month, it fell sharply to US$1,462 per ounce, and returned to the platform of US$1,500 per ounce in only 4 days. It is currently around US$1530. The rapid rate of recovery has surprised many short-sellers, and some investors with short positions waiting to buy have lamented that they missed the opportunity to buy. So what is the reason why gold rebounded so fast?
While the debt problems in Europe are surging, the national debt problems in the United States have become increasingly prominent. Negative news flPrecious metals market observationooded the market, causing European and American stock markets and non-US currencies to fall across the board. Panic sentiment makes investors feel like a bird of horror. The withdrawal of a large amount of funds from risky assets has made the market liquidity scarce, and risk-averse factors continue to dominate short-term market price trends. The international spot gold price stabilized at the US$1,700/ounce mark after a rapid decline, and domestic spot gold also fluctuated around 350 yuan/g.
5. The monthly report released by the US Department of Commerce (Commerce Department) on Thursday showed that the monthly rate of US commercial inventories in March rose by 1.0% to $1.477 trillion, which is expected to rise by 0.8%. U.S. commercial sales increased 2.2% in March to $1.200 trillion; the largest increase since March 2010 increased by 2.4%.
Ireland’s debt problem has once again become the focus of the market. The spokesperson of the Irish opposition Labour Party said on Thursday that it would oppose the European Union’s IMF’s Irish aid plan when the Parliament held a vote next Wednesday. This caused market concerns to rise sharply. At the same time, the international rating agency Fitch ) Announced the downgrade of Ireland’s sovereign rating.