1 thought on “Why is the price of gold rising so fast, only 345 a few days ago, now 360.”
Mona
1. Reasons 1. The dollar goes soft. Excessive debt and inflation make the dollar a weak currency and the rise in gold and house prices is very natural. Although gold does not generate income, it is the only asset that has both real value and can be circulated. Most assets have only one characteristic: the house has real value, but it cannot be sold immediately; the stock liquidity is good, but there is no real value as the banknote; the assets of various paper may be worthless. Gold has always been real value for three thousand years, and now gold purchasing power is still equivalent to the purchasing power of a hundred years ago. For example: In 1900, a good British farm was worth about 30 pounds per acre or 7.5 ounces of gold. The current price is about 3,000 pounds per acre, which is equivalent to 10 ounces of gold. Looking back at 1973 -this period is exactly the formation period of the modern US dollar system that is restricted by the golden standard -the volatility of the US dollar has a close impact on the trend of gold prices. According to a report by Federal Reserve, the correlation coefficient of gold price at the end of the period is -0.45 with the correlation coefficient of the Major Dollar Index of the US dollar. Obviously, the correlation between the two is stronger than the correlation between the gold price and the level of inflation. We might as well advance further to the time when the time period has shrank to the golden price of 1980. As a result, in the past 30 years, the correlation coefficient between the US dollar and the gold price is -0.65-height negative correlation. This means that the dollar and gold are like both ends of a seesaw, and there is a very obvious relationship. The price of the US dollar is the price of gold, and the price of the US dollar is the gold price. Compared with the two trend charts, the effect is very similar to a photo of the mountain scenery reflected by the calm lake. The ups and downs of gold prices and the gentle trend have a near -mirror reaction in the US dollar trend map. This shows that gold is not a commodity -at least not in line with the definition of a large amount of commodities in the people and industries. Paul Brodsky, the head of the New York QB Asset Asset Management Company, believes that "gold is a currency", and the daily gold price is one of the markets for the market for the market to "weaken the trend" to the US dollar and other banknotes. wind vane. If his analysis is correct, then what really affects the gold market is the long -term trend of the dollar, not inflation or inflation. Some people will strictly pointed out that the historical high of the gold price is produced in the recent wave of inflation. If you think so, you are mostly misunderstood the situation. In the summer of 1976, the price of gold began to rise for four years, and these four years coincided with the weakening of the dollar. At the end of 1980, the US dollar increased against the trend, and the price of gold began to fall back. Among them, inflation is at most a supporting role, which is definitely not the main force. 2. The second factor of gold rising is Asia's strong demand for gold jewelry. In 2005, the jewelry market used 2736 tons of gold, worth about $ 40 billion. The growth of jewelry sales is particularly obvious in India. Indians regard gold jewelry as a form of investment. It is not only an important decoration for women and a symbol of family wealth. The last factor affecting the skyrocketing gold is the oil market. Nigeria's turmoil shows that the oil market is not stable; any larger political or security issues in the Middle East may increase oil prices to more than $ 100 per barrel. One barrel of oil is now the same as one ounce. If the situation of Iraq or Iran has deteriorated, the price of gold will still rise. Although people always want to settle their bags, these factors that support the higher price of gold exist for a long time, and the price of gold will not fall quickly. Hedge funds may even promote the increase in gold prices because they need to have the opportunity to create a large speculative wave. First of all, countries such as Greece are facing risk of breach of contract, making investors worry. Injecting a lot of funds into the economy, the risks that the economy may encounter in the euro zone in the future will increase significantly. Secondly, people began to realize that the global economic recovery is destined to be a long and difficult process. In addition, global market funds have surged, increasing inflation expectations. Gold has always been regarded as a powerful tool for hedging inflation, so investors will naturally invest in golden embrace for value preservation. Finally, the rise in gold prices is a process of self -cycle. The rise in gold prices will attract more investors to participate, and this will further push the price of gold. The US dollar depreciates, the price of international gold is marked at the US dollar, and the two basically formed a counter -proportional relationship. Specifically, for domestic, there are several factors in the rise of gold prices: ▲ Inflation is expected to have a good anti -inflation characteristics in the age of gold. Until today, gold still has a certain anti -inflation effect. Since the outbreak of the international financial crisis, many countries have reduced interest to zero, and have implemented a considerable number of quantitative currency easing policies. This has caused investors to worry about inflation in the future of the economy and promote the increase in demand for gold investment. ▲ Speculation prevailing: Hedge funds speculation According to the World Gold Association, the investment demand of gold has accounted for about 40 % this year, and it was less than 19 % last year. The US IMM futures warehouse, which is generally concerned about the market, shows that the speculators look at more golden positions higher than that of the loser position, and it is high. Investors in China and India are buying gold bars and gold coins at unprecedented speeds. According to the statistics of the World Gold Association, China's gold investment demand increased by 187%in the second quarter, reaching US $ 1.4 billion in US dollars, and India's demand increased by 38%to 1.6 billion US dollars. Buying is a gold that is regarded as a hedging asset. Like gold, the rise of silver is also because investors are worried. As the government strives to prevent the economy from declining again, banknotes may depreciate. Silver investor Chad T. McNair said that my confidence in the future of the dollar is zero; as we continue to print banknotes to rescue banks and companies, we will continue to destroy the US dollar. At that time, hard assets It will be alone.
1. Reasons 1. The dollar goes soft. Excessive debt and inflation make the dollar a weak currency and the rise in gold and house prices is very natural. Although gold does not generate income, it is the only asset that has both real value and can be circulated. Most assets have only one characteristic: the house has real value, but it cannot be sold immediately; the stock liquidity is good, but there is no real value as the banknote; the assets of various paper may be worthless. Gold has always been real value for three thousand years, and now gold purchasing power is still equivalent to the purchasing power of a hundred years ago. For example: In 1900, a good British farm was worth about 30 pounds per acre or 7.5 ounces of gold. The current price is about 3,000 pounds per acre, which is equivalent to 10 ounces of gold. Looking back at 1973 -this period is exactly the formation period of the modern US dollar system that is restricted by the golden standard -the volatility of the US dollar has a close impact on the trend of gold prices. According to a report by Federal Reserve, the correlation coefficient of gold price at the end of the period is -0.45 with the correlation coefficient of the Major Dollar Index of the US dollar. Obviously, the correlation between the two is stronger than the correlation between the gold price and the level of inflation. We might as well advance further to the time when the time period has shrank to the golden price of 1980. As a result, in the past 30 years, the correlation coefficient between the US dollar and the gold price is -0.65-height negative correlation. This means that the dollar and gold are like both ends of a seesaw, and there is a very obvious relationship. The price of the US dollar is the price of gold, and the price of the US dollar is the gold price. Compared with the two trend charts, the effect is very similar to a photo of the mountain scenery reflected by the calm lake. The ups and downs of gold prices and the gentle trend have a near -mirror reaction in the US dollar trend map. This shows that gold is not a commodity -at least not in line with the definition of a large amount of commodities in the people and industries. Paul Brodsky, the head of the New York QB Asset Asset Management Company, believes that "gold is a currency", and the daily gold price is one of the markets for the market for the market to "weaken the trend" to the US dollar and other banknotes. wind vane. If his analysis is correct, then what really affects the gold market is the long -term trend of the dollar, not inflation or inflation. Some people will strictly pointed out that the historical high of the gold price is produced in the recent wave of inflation. If you think so, you are mostly misunderstood the situation. In the summer of 1976, the price of gold began to rise for four years, and these four years coincided with the weakening of the dollar. At the end of 1980, the US dollar increased against the trend, and the price of gold began to fall back. Among them, inflation is at most a supporting role, which is definitely not the main force. 2. The second factor of gold rising is Asia's strong demand for gold jewelry. In 2005, the jewelry market used 2736 tons of gold, worth about $ 40 billion. The growth of jewelry sales is particularly obvious in India. Indians regard gold jewelry as a form of investment. It is not only an important decoration for women and a symbol of family wealth. The last factor affecting the skyrocketing gold is the oil market. Nigeria's turmoil shows that the oil market is not stable; any larger political or security issues in the Middle East may increase oil prices to more than $ 100 per barrel. One barrel of oil is now the same as one ounce. If the situation of Iraq or Iran has deteriorated, the price of gold will still rise. Although people always want to settle their bags, these factors that support the higher price of gold exist for a long time, and the price of gold will not fall quickly. Hedge funds may even promote the increase in gold prices because they need to have the opportunity to create a large speculative wave. First of all, countries such as Greece are facing risk of breach of contract, making investors worry. Injecting a lot of funds into the economy, the risks that the economy may encounter in the euro zone in the future will increase significantly. Secondly, people began to realize that the global economic recovery is destined to be a long and difficult process. In addition, global market funds have surged, increasing inflation expectations. Gold has always been regarded as a powerful tool for hedging inflation, so investors will naturally invest in golden embrace for value preservation. Finally, the rise in gold prices is a process of self -cycle. The rise in gold prices will attract more investors to participate, and this will further push the price of gold. The US dollar depreciates, the price of international gold is marked at the US dollar, and the two basically formed a counter -proportional relationship. Specifically, for domestic, there are several factors in the rise of gold prices: ▲ Inflation is expected to have a good anti -inflation characteristics in the age of gold. Until today, gold still has a certain anti -inflation effect. Since the outbreak of the international financial crisis, many countries have reduced interest to zero, and have implemented a considerable number of quantitative currency easing policies. This has caused investors to worry about inflation in the future of the economy and promote the increase in demand for gold investment. ▲ Speculation prevailing: Hedge funds speculation According to the World Gold Association, the investment demand of gold has accounted for about 40 % this year, and it was less than 19 % last year. The US IMM futures warehouse, which is generally concerned about the market, shows that the speculators look at more golden positions higher than that of the loser position, and it is high. Investors in China and India are buying gold bars and gold coins at unprecedented speeds. According to the statistics of the World Gold Association, China's gold investment demand increased by 187%in the second quarter, reaching US $ 1.4 billion in US dollars, and India's demand increased by 38%to 1.6 billion US dollars. Buying is a gold that is regarded as a hedging asset. Like gold, the rise of silver is also because investors are worried. As the government strives to prevent the economy from declining again, banknotes may depreciate. Silver investor Chad T. McNair said that my confidence in the future of the dollar is zero; as we continue to print banknotes to rescue banks and companies, we will continue to destroy the US dollar. At that time, hard assets It will be alone.
The adoption