The World Gold Council said on February 11 that the total import volume of China National Gold Group Gold Jewellery Co.Ltd(600916) in 2021 was 818 tons. Under the background of strong recovery of local gold consumption, it achieved a significant year-on-year increase compared with 2020. The relatively stable local gold price, the traditional Spring Festival Gold shopping season and the endless means of business promotion have boosted consumers’ interest in gold jewelry products, especially ancient gold and jewelry with the theme of the year of the tiger.
The World Gold Council said that the gold consumption during the Spring Festival Golden Week was booming, and the strong promotion of retailers and relatively low gold prices also increased the attraction of gold jewelry products to consumers. Due to the sporadic spread of the epidemic, many consumers choose to cancel their travel and tourism plans and spend the new year locally. The travel budget vacated by consumers may also be another key driver of the strong holiday gold consumption.
The World Gold Council predicts that China National Gold Group Gold Jewellery Co.Ltd(600916) demand may continue to show a positive growth trend in 2022.
This year, under the background of inflation and geopolitical friction, gold prices have jumped up and down. So far, spot prices have fallen slightly by 0.15%, but some institutions still support gold. Li zizhuo, an analyst at East Asia Qianhai securities, said that according to the statistics of the U.S. Department of labor, the year-on-year growth rate of CPI in the United States in January 2022 was 7.5%, the highest level since March 1982. Global inflation is high and the price of gold is stronger. In the medium and long term, gold has excellent anti inflation properties, and a higher inflation level will drive the gold price upward. According to the statistics of the World Gold Council, the nominal return of gold in the market environment of low inflation (the year-on-year growth rate of us CPI is less than or equal to 3%) is about 6.38%, while in the market environment of high inflation (the year-on-year growth rate of us CPI is greater than 3%), the nominal return of gold is about 15.35%. Gold not only has certain benefits under different inflation conditions, but its benefits are more obvious under high inflation conditions. The anti inflation attribute of gold is still excellent. Therefore, in the medium and long term, gold prices are expected to rise further against the background of continued high inflation in the United States. In addition, the overseas epidemic and geopolitical conflict will intensify, economic uncertainty will increase, and gold prices will also be supported.
