Since this week, gold prices have fluctuated again. On Monday, Comex gold price once exceeded US $2000 per ounce. So far, Comex gold price has also increased by about 7% this year.
In this context, Chinese investors have used ETFs to allocate gold assets. According to the data, in March, China National Gold Group Gold Jewellery Co.Ltd(600916) etf inflow was 2.4 tons (about 150 million US dollars, 953 million yuan), with a total holding of 61.8 tons (about 3.9 billion US dollars, 24.5 billion yuan). As China’s largest gold ETF, Hua’an gold easy (ETF) received a net capital inflow of 1.422 billion yuan in March, with the latest scale exceeding 12 billion yuan.
Not only investors use ETF to allocate gold assets, but also many fund managers begin to love gold stocks. Many gold stocks appear in the list of the top ten heavy positions of the fund.
For the future market of gold price, the fund manager as a whole also maintained a relatively optimistic attitude, and said that investors should add gold to their portfolio. For example, on April 20, Hua’an Fund released the first quarterly report of its fund products. Xu Zhiyan, assistant general manager of Hua’an fund and senior director of index and quantitative investment department, said that high inflation, slowing overseas economic recovery, tightening and landing of global monetary policy and geopolitical risks are expected to become the core factors driving the gold market in the next stage.
gold ETF attracts attention
Xu Zhiyan pointed out that looking forward to the second quarter, there is still great uncertainty in the global macro environment. In terms of economic recovery, the risks of covid-19 variant and the liberalization of border controls still exist, and the large-scale fiscal stimulus and monetary easing in Europe and the United States are facing a ebb tide, and the economic momentum is expected to weaken significantly. On the inflation side, after the geopolitical storm, the relationship between supply and demand of bulk commodities is becoming increasingly tense, the price of crude oil remains high, and the transmission of the rise of energy prices to the subsequent midstream manufacturing industry can not be ignored. It is expected that the inflation center will be significantly higher than before the epidemic, and high inflation is expected to remain for a long time, which is generally good for gold. Geopolitical changes are also an important factor affecting the value of gold in the future, and the demand for safe haven funds is significantly increasing. In terms of policy, the Fed’s interest rate hike has been implemented in the interest rate meeting in March. From the gold trend in the last round of interest rate hike, the gold price is under pressure during the expected period of interest rate hike, but after the interest rate hike is implemented, gold often performs strongly.
In fact, the data show that Comex gold prices have risen by about 7% this year and exceeded US $2000 per ounce this week. In this context, gold ETF has become a safe haven for funds. According to the report released by the global gold association, in March, the global gold ETF received a net inflow of 187.3 tons, or US $11.8 billion (about 75.1 billion yuan), the largest monthly net inflow record in nearly six years.
In the Chinese market, the Shanghai midday benchmark gold price (shoupm) denominated in RMB and the London morning gold price (LBMA) denominated in US dollars rose by 1.5% and 1.1% respectively in March, the strongest quarter since the second quarter of 2020. At the same time, some Chinese funds have allocated gold assets through ETFs. In March, China National Gold Group Gold Jewellery Co.Ltd(600916) etf inflow was 2.4 tons (about 150 million US dollars, 953 million yuan), with a total holding of 61.8 tons (about 3.9 billion US dollars, 24.5 billion yuan). As China’s largest gold ETF, Hua’an gold easy (ETF) received a net capital inflow of 1.422 billion yuan in March, with the latest scale exceeding 12 billion yuan.
favored by public funds
Industry analysts said that although the rise in interest rates posed adverse factors for gold, reasons including increased geopolitical risks and stronger inflationary pressures supported gold prices in the first quarter.
Not only investors use ETF to allocate gold assets, but also many fund managers begin to love gold stocks. Many gold stocks appear in the list of the top ten heavy positions of the fund. According to the first quarterly report of some funds, Yintai Gold Co.Ltd(000975) , Hunan Gold Corporation Limited(002155) , Western Region Gold Co.Ltd(601069) , Shandong Gold Mining Co.Ltd(600547) and other gold stocks have become the objects of the fund’s active intervention.
Taking Yintai Gold Co.Ltd(000975) as an example, the company showed obvious signs of being overweight by the fund in the first quarter. According to the data, as of the first quarter report, nine funds of seven fund companies held Yintai Gold Co.Ltd(000975) , accounting for 3.87% of the circulating shares. Among them, Huaxia core manufacturing hybrid held Yintai Gold Co.Ltd(000975) more than 30 million shares in the first quarter, accounting for 1.23% of the outstanding shares.
Shandong Gold Mining Co.Ltd(600547) is also a heavy stock of several funds. As of the end of March, the first quarterly report of the fund showed that 24 funds under 16 fund companies held Shandong Gold Mining Co.Ltd(600547) .
In addition, the survey data show that the enthusiasm of institutions to lay out gold is high. Since this year, China National Gold Group Gold Jewellery Co.Ltd(600916) , Shandong Gold Mining Co.Ltd(600547) , Hunan Gold Corporation Limited(002155) and other companies have been investigated by institutional investors. China National Gold Group Gold Jewellery Co.Ltd(600916) received 19 institutional surveys, involving 92 fund companies in total.
still has configuration value
In fact, since 2020, the price of gold has risen sharply and once hit an all-time high. Against the above background, China National Gold Group Gold Jewellery Co.Ltd(600916) etf has sprung up one after another.
In 2020 alone, seven gold ETFs were established, including three ordinary gold ETFs and four Shanghai Gold ETFs In 2021, Tianhong fund also issued Shanghai Gold ETFs, so far, there are 12 gold ETFs in China. Ordinary gold ETF and Shanghai Gold ETF are slightly different in trading mechanism, but both reflect the spot price of gold.
According to the time of establishment, the 12 gold ETFs are Huaan gold ETF (518880), Cathay Pacific gold ETF (518800), e-fund gold ETF (159934), Boshi gold ETF (159937), Huaxia gold ETF (518850), ICBC Credit Suisse gold ETF (518660), Qianhai Kaiyuan gold ETF (159812), Fuguo Shanghai Gold ETF (518680), GF Shanghai Gold ETF (518600), CCB Shanghai Gold ETF (518860), BOC Shanghai Gold ETF (518890) Tianhong Shanghai Gold ETF (159830).
Compared with investing in physical gold, gold ETF is very convenient through floor trading, with strong liquidity and low threshold. In addition, low transaction costs are a major advantage of gold ETF, because gold ETF does not need storage fees, storage fees, insurance fees and other expenses, and its advantages are very prominent. It can be predicted that China National Gold Group Gold Jewellery Co.Ltd(600916) etf market has broad development space.
For the future market of gold price, the fund manager as a whole also maintained a relatively optimistic attitude, and said that investors should add gold to their portfolio.
Wang Xiang, fund manager of Boshi fund, believes that the high viscosity of global inflation and the pulse of geographical conflict will bring strong support to the performance of the medium and long-term gold market. However, in the short term, we still need to be vigilant against the periodic impact of the rise of long-term interest rate on the price of gold. Huaxia Fund Manager also believes that gold ETF has natural anti inflation properties and is a good way to smooth fluctuations as a long-term allocation of portfolio.
