Investment in China's gold analysis

Since 2001, the international price of gold began to enter the upward trend in 2008, this trend is more evident. Domestic gold enterprises as a result of rising gold prices, and its continued efforts to enhance investment and development, making China the past few years has steadily increased gold production out of the situation, according to the World Gold Mining Company statistics, China has become the world's largest gold-producing countries. At the same time, South Africa, Australia, Canada, the United States and other major gold producing country in recent years, gold production is declining year by year, on a global scale is the elimination Peter up, the change is not significant. From the consumer's point of view, the situation is similar to the price rise year after year many gold-consuming countries such as India, Turkey and other countries in the decline in consumer demand, China's consumption is growing. At the same time, the world's emerging markets of gold reserves over the past few years showed an increasing trend for gold investment fund positions in recent years been on the rise. Private investment, particularly investment demand, China's population is growing. This year, China A-share market fell sharply, the Chinese people's enthusiasm for investment in gold is also rising gradually, the bank's gold business development can be seen, for example, in the first half of 2008, China Construction Bank (601,939, it shares), "Long Dingjin" The trading volume increased by several times the same period last year. And in the first quarter of 2008, the Shanghai Gold Exchange, gold traded up to 1085.60 tons, up nearly six-fold. However, China's investment in the gold market has just started, a relatively small scale, which is China's gold production, sales do not increase in direct proportion to the size of the investment we are making less from the World Gold big a far cry from the country. Not because of gold's pricing power, domestic gold prices tend to change with the international market. Gold supply and demand factors affecting the price of gold futures and the long-term trend. The gold in addition to the short-term trend is particularly weak, and in particular when, in 80% of the time, the trend of the index and the U.S. dollar negatively correlated. Most of the time is the same with the U.S. dollar index negatively correlated with the trend of crude oil futures price movements, they often can be supported by the trend of gold. The world's major political, economic and war events or emergencies, they often can be gold-order phase grid and even the formation of the mid-point level Impact on the price of gold is a multi-factor, to buy gold, if only to consider the level of inflation, which in fact is a biased, CPI index reached a peak, gold may not have been on the rise is trend. High inflation, gold may also be due to the impact of other factors have led to falling prices, it is entirely possible that the gold investment must be carefully considered.