On September 25th, spot gold rose above $2665 per ounce, setting a new record high and accumulating 29% this year. As of press time, the spot gold price is reported at $2653.55 per ounce.
In terms of physical gold today, Chow Sang Sang's full gold jewelry is priced at 778 yuan/gram, an increase of 8 yuan compared to 770 yuan/gram yesterday. The price of gold and foot gold jewelry in Laomiao is 775 yuan/gram, while that of Chow Tai Fook is 773 yuan/gram.
Major brand gold stores saw a drop in gold prices today
Note: There is no unified price for gold prices in gold shops (the price of gold for the same brand may vary in different regions). The above quotation is for reference only, and labor costs will be calculated separately. Purchasing will be based on the local gold shop's daily listed gold price. Webpage Screenshot
At present, many consumers are adopting a wait-and-see attitude towards whether to invest in gold, and even some consumers have raised questions on social media platforms: gold prices have been soaring all the way, should we buy gold on National Day?
On the news side, the Governor of the People's Bank of China announced at the press conference held by the State Council Information Office on the 24th that the deposit reserve ratio and policy interest rate would be lowered. In the near future, the reserve requirement ratio will be lowered by 0.5 percentage points, releasing long-term liquidity of 1 trillion yuan. Before the end of the year, there may be another opportunity to lower the reserve requirement ratio by 0.25-0.5 percentage points. At the same time, the central bank's policy interest rate was lowered, and the seven day reverse repo operation interest rate was reduced by 0.2 percentage points, guiding the loan market quotation rate (LPR) to decline synchronously.
In the United States, the September Conference Board Consumer Confidence Index plummeted from 105.6 in August to 98.7, the largest monthly decline since August 2021, far below market expectations of 104. Federal Reserve Governor Bauman hawkishly stated that he will continue to adopt a cautious attitude towards further interest rate cuts; The risk of inflation still exists, and the labor market has not shown significant signs of weakness. The Federal Reserve should reduce interest rates at a "moderate" pace.
Despite Federal Reserve Governor Bauman's hawkish speech, US consumer confidence has experienced its largest decline in over three years. The Richmond Fed manufacturing index fell sharply in September, increasing market expectations of a US economic recession and a 50BP interest rate cut by the Fed in November. The US dollar index and US bond yields have both fallen sharply, coupled with the favorable combination of domestic interest rate cuts and reserve requirement ratio cuts, and gold continues to hit a new historical high.
China CITIC Securities stated that the Federal Reserve cut interest rates by 50bp in September, and gold prices exceeded $2600. The interest rate cut is positive for gold prices, but the market has already had sufficient trading in the early stages, and the slowdown in the US economy and inflation behind the interest rate cut will suppress the space for gold prices in the future. The current price of gold at $2600 has already surged, and it is recommended to take profits at a high level in the short term. The core oscillation range is between $2300 and $2500.
In addition, the escalating conflict in the Middle East continues to boost demand for risk control.
What is the value of gold in the world? A fund expert gave the answer: $20 trillion.
Jeroen Blokland, founder of Blokland Intelligent Multi Asset Fund, tweeted on Wednesday that "the real-time market value of gold has surpassed $20 trillion for the first time!" accompanied by a chart of gold market value changes produced by the institution.
Blokland has been closely monitoring every move in the precious metal market for many years. He pointed out several times earlier this year that some common websites in the current market are lagging behind in their statistics on changes in gold market value.
For example, in the well-known market value statistics website Company Smart Cap, the latest statistics on gold market value still remain at $18.019 trillion, but Blokland has repeatedly pointed out that the relevant figures are too low because the above ground gold stock data used by Company Smart Cap is still the old data from the World Gold Council three years ago (2021).
So, how is it calculated that the current market value of gold has exceeded the $20 trillion mark?
The answer is actually quite simple. According to the latest data released by the World Gold Council in February this year, as of the end of 2023, the global mined gold stock was 212582 tons. Converted to ounces (1 ton=35273.96 ounces) and multiplied by the current gold price (which reached a high of $2670 on Wednesday), this figure has already exceeded $20 trillion.
Undoubtedly, for the precious metal market, this number is clearly a milestone worth celebrating.
What is the purchasing power of $20 trillion in gold? If compared to the stock market, the world's gold can almost buy up the top ten listed companies in the world - equivalent to the total market value of Apple, Microsoft, Nvidia, Amazon, Google, Saudi Aramco, Meta, Berkshire Hathaway, TSMC, and Eli Lilly.
