In China, gold was once a symbol of identity and wealth. Gold jewelry plays an important role in life. In 2001, China became the world's fourth largest gold consumer market after India, the United States and Saudi Arabia, with demand for gold jewelry accounting for about 96% of the total market.
However, Chinese people love gold, but they are not good at collecting gold and using gold.
For merchants, among all kinds of physical gold products, the premium rate of gold ornaments is the highest, generally around 15%. Obviously, for investors, buying gold jewelry is the most uneconomical. A large survey conducted in 10 major cities in China showed that more than 80% of respondents purchased jewelry for decoration, and only 11.1% of respondents wanted to preserve value. In Japan, only 20% of gold is used to make jewelry.
The open Chinese gold market has made the Chinese feel that in addition to playing jewelry, they can use gold to do something else, such as investment and preservation.
In fact, the biggest function of gold is to preserve value.
Although there is no interest in storing gold, the “actual purchasing power†of gold has been relatively stable. According to gold analysts, one ounce of gold, last year's high of $ 456 and $ 10 years ago, the actual purchasing power is not much different. Therefore, gold has always been regarded as one of the best tools to fight inflation.
To maximize the value-preserving function of gold, you need to understand the various ways to invest in gold. Buying gold ornaments can only be counted as consumption. Perhaps the real gold investment expert should be "there is gold in the heart, no gold in the hands". When investing in gold, the cost of holding real gold may be the highest because of the expenses related to storage and transportation. The non-physical “speculation†of buying and selling paper gold and futures funds can both hedge risks and minimize costs. According to market conditions or throwing, or holding, perhaps this is the highest level of investment in gold.
Of course, if the purchase price is too high, there is a possibility of losing money in holding gold. However, the purchase of gold is a physical investment, and the price of gold is still falling.
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