Why are precious metal prices falling

Why are precious metal prices falling

In addition, the total number of open positions in the New York Mercantile Exchange gold futures announced last Wednesday fell to the lowest level during the year, and the Global Gold Council reported on Thursday that physical demand for gold fell to its lowest level since the first quarter of 2010. Wang Dun believes that this also restricts the possible rebound in gold from the fundamentals. In addition to its safe-haven function, gold is also an important raw material for making jewelry. Now that the global demand for physical gold is declining, the support for gold priceWhy are precious metal prices fallings will also weaken. In fact, the high price of gold has restrained gold consumption. At present, the price of gold is higher than that of platinum. Consumers will consider buying platinum jewelry more when buying jewelry.

The punishment was mainly related to a meeting held by the Gold Jewelry Industry Association on November 1, 2011 to discuss the price coordination of related products. In an interview with the “Daily Business News” reporter, Lao Fengxiang said that as a company, he lacks knowledge and understanding of the “Anti-Monopoly Law” and has already realized that this approach is contrary to the “Anti-Monopoly Law”. This punishment is also an education and learning for the enterprise. The above-mentioned people said that this time, rectification measures will be further implemented to ensure that enterprises operate more standardized in market competition and insist on independent pricing by enterprises.

In accordance with the forecast at the beginning of the year, the Democratic Party failed to block the Republican political power, and the Republican Party controlled the House of Representatives by an absolute advantage of 55 seats higher than the Democratic Party. Even if some Republican members of the House of Representatives approve the Democratic proposal on specific items temporarily, the Republican Party has control of the House of Representatives. Obama is in trouble!

Can you trade the old gold jewelry home without spending money? Recently, as the price of gold has been rising all the way, some merchants in the provincial and urban markets have displayed free trade-in signs on gold jewelry to attract customers. However, the number of grams is difficult to guarantee, and factors such as incomplete prices keep many consumers out of the door to trade-in. Recently, the price of gold in the international market has been running at a high level, and the price of various gold jewelry in the retail market has also risen accordingly. Many consumers have also become cautious when buying gold and silver jewelry. At the same time, in order to boost performance, businesses have also developed different promotional methods. Among them, a sign that holds a shopping receipt for free trade-in every year has attracted the attention of many consumers. When I bought this brand of gold jewelry, trade-in was what attracted me the most. The clerk said that as long as I rely on the invoice, I can come in for new accessories every year. In this case, I am equivalent to buying a new jewelry forever. Ms. Zhao, a citizen who has bought the brand's accessories, said. In a shopping mall on Luoyuan Street, the provincial capital, the reporter saw at this gold jewelry counter that advertised that it could be traded in. Almost all jewelry, including bracelets, necklaces, and rings, contained gold. The texture of our products are mainly gold and man-made crystals, and basically every piece of jewelry has gold. Customers who have bought our gold jewelry can enjoy free maintenance and participate in the annual trade-in activity. A clerk said in an interview with reporters. However, in the context of such high gold prices, even if depreciation requires a certain amount of cost, why do merchants offer such promotional methods? The reporter asked the clerk what kind of merchandise he could exchange with gold jewelry worth about 5,000 yuan. The clerk said that all the goods at the counter could be exchanged, and then accompanied the reporter to select and calculate the price. You can choose several kinds, as long as you make up to 5000 yuan. However, the reporter found that it is not easy to collect exactly the 5,000 yuan. It is either not enough or the difference needs to be made up. According to several accessories that the reporter fancy, the most suitable one should be more than 130 yuan. In addition to the difficulty in making up the price, the reporter also found that the merchant did not specify the grams of gold during the replacement process. Citizen Ms. Zhao told reporters that when she first bought it, she only considered the appearance, price and trade-in activities, and did not pay attention to the content of gold. Now the price of gold has been rising, and the price of gold jewelry of the same gram number is definitely higher this year than last year. Will the gold content decrease at the end of my shift? Ms. Zhao said. In this regard, the person in charge of the brand's after-sales service department said that their gold jewelry belongs to the fashion gold category, so no matter in the initial sale or trade-in, the number of grams will not be marked. Since our products contain gold, we will definitely make appropriate adjustments based on real-time gold prices. (Reporter Zhang Zhuo Ran) Author: Zhang Zhuo Ran (Source: Shandong Business Daily)

It is precisely because of this that a large amount of funds gathered in this only wealth haven in the short term, which caused the rapid rise of gold prices in a very short period of time. Xiu Chengcai said, however, with the rapid rise of gold prices in the short term, transaction costs are also rising, and the efficiency of the use of funds for participating in gold investment is continuously decreasing. Coupled with the panic and decline in the global capital market in the past two weeks, the major players in the gold market, international hedge funds, have felt even more pressure. The demand for hedging will gradually decrease due to the increase in participation costs and the outward flow of funds. It is foreseeable that another major factor supporting the continued increase in the price of gold is quietly changing due to the increase in prices. It is the analysis of the changes in the fundamental factors that have caused the price of gold to continue to rise, and it can be expected that the price of gold will approach the end of a wave of craziness due to the temporary rebellion of investment demand.

However, the expectation of quantitative easing is positive for the risk market in the medium and long term. In the current economic downturn, the global (mainly developed countries in Europe and America) quantitative easing will make investors expect that the economic environment will improve, the living environment of enterprises will gradually improve, and profit expectations will become stronger, which will stimulate market The outlook for the capital market is expected to improve. It will also stimulate the market’s perception that the demand for bulk commodities will gradually turn strong, which in turn will benefit the entire risk market. In addition, tWhy are precious metal prices fallinghere is a market view that, in the context of quantitative easing, even if banks control risk and reluctant to lend money or do little to help economic recovery, funds will directly enter the risk market for speculation, which is also good for the risk market. This view is represented by the remarks of former Federal Reserve Chairman Greenspan.

Due to good economic data in the United States and the market’s concerns about real demand, the precious metals recorded a sharp decline in the previous trading day (15th). Among them, the selling pressure of London Gold is obvious since the opening of the market at $1326.28. After the United States announced the price index in the evening, the decline expanded and it once touched the line of 1,285.80 dollars. As of the close, it was reported at 1,302.20 US dollars, down 25.41 US dollars, or 1.91%. Spot silver was affected by the fall in gold and once dropped to its lowest point since February 4. Data information shows that spot silver fell 0.37 US dollars to close at 19.60 US dollars in various periods throughout the day. A decrease of 1.85%.

Since last year, many central banks around the world have increased their gold holdings. According to data from the World Gold Council, global central banks increased their holdings of 651.5 metric tons of official gold reserves in 2018, an increase of 74% year-on-year, marking the highest amount of central bank gold purchases in 50 years. Affected by this, in the fourth quarter of 2018, when global financial assets suffered a crazy sell-off, gold bucked the trend and soared nearly 10%.

According to data released by the International Monetary Fund (IMF) on Tuesday (February 25), the Turkish Central Bank’s gold reserves plummeted in January 2014. Analysts pointed out that this may be because the Turkish lira plummeted in January, causing local commercial banks to subscribe from the central bank. Take out a lot of gold. The Central Bank of Turkey is the only central bank that incorporates commercial bank gold reserves into official gold reserves.