Buy or sell? This is a problem for gold

As the price of gold continues to rise and hits new highs repeatedly, consumers are divided on the trend of gold prices. Some consumers are enthusiastic about buying gold, while others choose to "cash out" and sell their gold at a high price. Based on this, major gold jewelers have recently promoted gold recycling business as an important business.

On April 14, the reporter visited the gold consumer market and learned that the recycling prices of many gold jewelers are generally higher. The recycling price of gold bars in China has exceeded 550 yuan/gram, and the recycling price of some jewelry gold has exceeded 600 yuan/gram. .

Recycling business is booming

"Before, we only had a 'trade-in' business, not a recycling business. Recently, the price of gold has increased a lot, and many consumers have inquired about recycling business, so we have recently launched this type of business. Recycling is done in cash on the spot. Consumers only need to bring the physical items, and they will be paid on the spot. You can weigh and inspect gold. The price for jewelry with a small weight is 525 yuan/gram. If the gold bar weighs more than 20 grams, you can apply for a higher price. The price for gold bars that weighs more than 50 grams can be increased. "During the visit, A salesperson at a China Gold Store told a reporter from China Securities Journal.

The sales staff of Zhou Dasheng store told reporters that recently, there have been many customers inquiring about recycling business. Many customers purchased gold at a lower cost before. Some customers purchased gold around 2014, and the current market price has nearly doubled. These customers chose to cut their profits in time. Although they felt that the price of gold might still rise, they still chose to sell and "cash out" while major gold stores had high-price recycling business. “I’ve received several ‘big orders’ recently, all of which cost a few hundred grams or more.”

"The recycling price of gold bars today is 560 yuan/gram, and the recycling price of jewelry gold is 615 yuan/gram. It depends on the actual product." The reporter visited a store specializing in gold recycling in Xicheng District. The salesperson told the reporter, "The most cost-effective one now is ordinary gold. Gold jewelry. If it is a pure gold product and there is no major problem with the appearance, it can be recycled directly at the highest price. In contrast, some inlaid and enamel craft products that consumers bought at high prices need to be recycled. It can only be recycled by cutting and separating it, and it cannot be sold at a high price, so consumers feel that it is very uneconomical. Gold bars also face the same problem, and we need to cut them for gold inspection.”

 

Quotes hit new highs

In terms of selling price, the reporter visited and found that the current price quoted by mainstream gold jewelers is basically above 700 yuan/gram. The quotations of brands such as Chow Tai Fook and Lao Feng Xiang have exceeded the 730 yuan/gram mark, and the production cost is calculated separately.

In terms of international gold price quotes, Wind data shows that COMEX gold once reached US$2,448.8 per ounce on April 12 and closed at US$2,360 per ounce.

The research report of Datong Securities shows that at present, precious metals represented by gold are “unbeatable”. Affected by the start of the global replenishment cycle, non-ferrous metal prices benefited. Before the Federal Reserve officially cuts interest rates, U.S. bond interest rates may return to the downward channel, and gold's rise is more certain, but the volatility may be greater.

According to the research report of AVIC Securities, gold prices continue to hit new highs and drive A-share gold stocks to continue to rise, becoming one of the hot spots in the market. Since 2022, the price of gold has continued to deviate from the U.S. dollar’s ​​real interest rate framework, and there has even been a significant deviation recently. Behind the failure of the real interest rate framework is the weakening of the US dollar's credit and the intensification of geopolitical conflicts. Central banks continue to increase their gold reserves.

Regarding short-term trends, AVIC Securities believes that as the narrative of "secondary inflation" in the United States continues to be verified, the marginal power of the gold real interest rate framework may increase. At the same time, considering that the current long gold positions are too crowded, it is not ruled out that gold prices and gold stocks will undergo shock adjustments in the short term.