LatelyThebaccarathotelGold prices have soared all the way, international gold futures and spot gold have both broken through the $2400 / oz mark, directly setting a new record! The gold jewelry of domestic gold jewelry shops has also risen with the rising tide, reaching 742 yuan / g, which has soared by 50% compared with the gold price at the beginning of 2020! Since the beginning of this year, the market has been full of "gold has reached its peak, run!" The signal of risk aversion, but unexpectedly, the more bad the market, the more ferocious gold rose, and the gold price was like climbing a ladder, counterattacking all the way to the face. Why is this gold rally so crazy? The reason is simpleThebaccarathotelUnder the global economic recession and geo-risk, gold is the only legal tool that can hedge the credit risk of paper money (RMB, US dollar).

Gold is denominated in dollars and is generally negatively correlated with dollar interest rates. According to the normal law, if Lao Mi raises interest rates, then gold prices are likely to go down, and vice versa. But what is interesting is that this round of interest rate hikes are about to go crazy, but gold prices not only do not fall, but rub up. The core reason is risk aversion. Global economic recession → everyone crazy to buy gold to avoid risk, regional conflict intensified → people continue to buy gold to avoid risk. Not only are retail investors on a gold buying spree, but central banks are also hoarding gold. In 2022, central banks around the world went on a buying spree of 1082 tons of gold, more than double the amount bought in 2021. In 2023, central banks around the world continued to buy 1037 tons of gold. By the end of March 2024, the gold reserves of the top ten countries in the world's gold reserves totaled 24260.Thebaccarathotel.63 tons, up 15% from FebruaryThebaccarathotel.58 tons, an increase of 17 months in a row.

In addition to global central banks buying, many well-known institutions around the world are also buying gold in a steady stream. The demand for gold skyrocketed, but the level of supply and demand for gold was very stable. When the supply was far less than the demand, the price of gold finally skyrocketed. Will gold continue to rise in the follow-up? A: there is hope! First of all, it is certain that the dollar will cut interest rates. If we do not cut interest rates, the economy will certainly not be able to withstand it for a long time. Once the interest rate cut cycle begins, it will certainly be positive for gold prices. Real estate, the engine of the domestic economy, is still in deep trouble, and it will take time to repair. In the short and medium term, it is good for the economy to move forward steadily, and gold is likely to continue to sell if it is not expected to adjust so quickly.

The conflict between Palestine and Israel is still going on, and with the addition of the debuff of the election year, risk aversion in the market is likely to rise. So gold still has support, whether it is safe-haven demand or long-term investment can be considered. Taking small days as a reference, gold has earned much higher returns than bonds and real estate except for outperforming the stock market since 1972. In the 20 years lost (1990-2012), Japanese government bonds (4.2 per cent) > gold (4.0 per cent) > Japanese corporate bonds (4.0 per cent) > yen (2.1 per cent) > inflation (0.4 per cent) > real estate (- 2.1 per cent) > Japanese stocks (- 4.0 per cent). Gold returns are still far ahead. Compared to Laomi's core assets, gold is not weak. (only worse than the performance of US stocks and REITS) so far, the cumulative income of gold has directly led Japanese stocks and even US stocks. Fearless Niu Bear, that's awesome! The vast majority of people underestimate the investment value of gold. So, how should gold be allocated now? ETF linked funds, gold stock funds are actually good choices. ETF linked funds: there are at least a dozen gold-themed ETF linked funds issued by fund companies on the market, closely tracking gold prices, with little difference in performance, and which one to buy is almost the same.

But the gold stock fund is a scarce variety. Gold is hot this year, and some companies have just begun to lay out, but before that, Qianhai open source is outstanding in the whole market. Qianhai open source layout gold sector to start in 2015, in the context of RMB depreciation, Qianhai open source layout of the industry's first gold stock theme fund-Qianhai open source gold, silver and jewelry mixed fund. In 2020, Qianhai Open Source issued gold ETF and gold ETF connection, accurately grasping that round of gold price rebound opportunities, in addition, Qianhai open source resources issued in 2016, in recent years have also focused on gold and rare earths. Qianhai open source in the golden track product layout can be said to be the earliest and most comprehensive in the industry, fast, accurate and ruthless. Wu Guoqing, a fund manager of Qianhai open source gold, silver, jewelry and core resources, has also worked deeply in the gold sector for many years. The core resources he manages have been in gold since 2019, and gold prices have fluctuated all the way up since then. He himself has been bullish on gold for many times, and his research on the control of gold's prosperity and stock selection is very deep, and his performance is also very high, and his short -, medium-and long-term performance is very excellent.

Plate name Precious Metals keywords Gold price, global recession, geo-risk bullish (bullish) under the global recession + geo-risk, gold is the only legal tool that can hedge the credit risk of paper money (RMB, US dollar). Continue to soar! Hexun self-selected Stock Writer risk Tip: the above content is only the views of the author or guest, does not represent any position of Hexun, and does not constitute any investment advice related to Hexun. Before making any investment decision, investors should consider the risk factors related to investment products according to their own circumstances and consult professional investment advisers if necessary. Hexun tries its best but cannot confirm the authenticity, accuracy and originality of the above content, and Hexun does not make any guarantee or commitment.