Physical gold supply and demand go hand in hand with gold price

• Physical gold supply and demand go hand in hand with gold price
  

The supply and demand of physical gold will have a certain impact on the price of gold. If the principle between supply and demand is used to analyze the price of gold, that is, the supply of gold is greater than the demand for gold, then the price of gold will fall; the supply of gold is less than the demand for gold. demand, then, the price of gold rises.

The supply of gold is inseparable from the mining of gold.

• Do Mining Costs Affect Gold Prices?
  

Before, every time the spot gold price reached around $1,200 per ounce, there would be voices discussing the cost price of gold in the spot gold investment market. The general argument was that the market price was approaching the cost price of gold mining.

However, with the development in recent years, data from seven of the top ten gold mining companies in the world show that the current average gold mining cost has reached US$1,201 per ounce. Therefore, $1,200/oz has become the world-recognized average cost price of gold.

And many investors in the market think that the cost price of gold mining will have a certain impact on the price of gold, but in fact this is not the case. The vague concept of gold cost support is not of much reference value. direction. Especially when the mining of gold has reached its peak in recent years and the price of gold is relatively stable.

Therefore, I think there is no need to pay too much attention to such a vague conceptual value of gold mining costs.

• In 2013, why did the gold price not rise during the "gold rush" of Chinese aunts?
  

In early April 2013, the price of gold in the international market was facing a sharp drop. Then, buying gold as an investment and financial management at that time became a hot topic among everyone. Throwing it out, the price of gold fell all the way down, but at this time, investors and buyers represented by "Chinese aunts" made a move, and spent 100 billion to buy 300 tons of gold in the market.

Investors and buyers represented by "Chinese aunts" have become a controversial topic whether they should buy gold as a hedge or investment.

In fact, many investors were quite rational about gold in the past. When investors felt that gold would be in a short-term or long-term downturn in the future, most of the physical gold was on the sidelines. In April 2013, the price of gold continued to rise. The decline has made many investors excited. Buying gold is like buying cabbage. Not only that, many domestic investors have begun to snap up physical gold, jewelry, and gold bars.

This kind of purchasing power has pushed up the price of gold, but this is also for a short period of time. More than 300 tons of gold will not affect or shake the trend of gold prices in the international market. The rush to buy physical gold cannot constitute a real push for the future trend of gold prices. strength.

Risk reminder: remember to take profit and stop loss when trading, and put risk management first.