Since the beginning of this year, the price of precious metals has shown an obvious trend of differentiation. As traditional safe-haven metals, gold and silver have strong currency attributes and continue to rise under the influence of multiple factors such as the epidemic and overseas loose policies. Platinum group metals such as palladium and rhodium fell into low shocks after experiencing a brief bull market at the beginning of the year.
According to industry insiders, it is expected that gold and silver will still be favored by many investors due to the function of hedging and hedging, while platinum group metals will be subject to factors such as the recovery of the automobile industry and the emission policies of various countries.
Silver trend is stronger than gold
The July non-agricultural employment data released last Friday was better than market expectations. Coupled with the failure of the US fiscal stimulus plan to land as scheduled, the prices of gold and silver have fallen to a certain extent. However, judging from the recent week, the price of gold has continued to hit new highs, and the price of silver has continued to set new highs in more than 7 years. Data shows that as of last week, the London spot gold week rose 3.04%, and the highest reached $2075.14 per ounce on August 7 local time, continuing to set a new record high the London spot silver week rose 16.14%, the highest local time August 7 Reached 29.86 US dollars / ounce, setting a new high in more than 7 years.
Experts are said that market demand for hedging has risen as the overseas epidemic continues to spread. Under the background of monetary easing, the dollar has fallen, overseas inflation is expected to rise, and bond yields in many parts of the world The downturn is the main reason why gold and silver prices continue to rise.
Signs of overheating in the bullion market
The rising risk aversion has also set off a boom in gold and silver investment in the market, with gold ETF and silver ETF holdings repeatedly breaking records. According to data from the World Gold Council, as of the end of July, the total global gold ETF holdings reached 3,785 tons, setting a new high again. Data show that as of August 6, the world’s largest silver ETF, iShares Silver Trust ETF (iShares Silver Trust) held 17,866.67 tons, a record high.
Gold and silver have successively set new historical price records, which has also caused industry insiders to worry about overheating the market. Prices may continue to rise after correction and consolidation.
“Silver has risen from US$18/ounce to US$29/ounce in just over a month. There are obvious signs of overheating in the market. Many participants in silver futures have paid off handsomely and have begun to consider liquidating their positions to make profits. Investors choose to cash out and leave the market, and silver prices may fall sharply.”
Looking ahead, experts believe that as the overseas epidemic improves, some market funds will shift from currency-based gold and silver to more industrial-based commodities such as copper, zinc, and iron ore, which may lead to a certain level of gold and silver prices fluctuation. However, in the context of overseas inflation, the role of gold and silver hedging and hedging is still very important.
Platinum group metals shock differentiation
Platinum group metals are very important to the automotive industry. Rhodium, palladium, and platinum are all used in the field of automotive exhaust gas purification catalysts. Due to the tightening of vehicle emission standards in various countries and the greater uncertainty in the supply of mines in South Africa, platinum group metals experienced a phased bull market at the beginning of this year.
Since April this year, gold and silver have continued to strengthen, but the trend of platinum group metals has been completely different platinum prices have fluctuated upward, while palladium and rhodium prices have fallen into low levels. Data shows that platinum prices have risen by 29% since the beginning of April, while palladium and rhodium have fluctuated around $71.77 /g and $315.80/g respectively.
Industry insiders interviewed said that the decline in the global auto industry’s prosperity due to the epidemic is the main reason for the short-term decline in platinum group metal prices. Automotive catalyst manufacturer Johnson Matthey predicted in May this year that the epidemic would reduce the amount of platinum group metals in automotive catalysts by at least 15% to 20%.
What enlightenment does the gold rank’s record high bring us?
As of last Wednesday, gold had exceeded $2,000. As risk aversion warmed up, the international gold market was extremely hot. After a lapse of 9 years, the price of gold broke through. The highest spot gold price in London during the session reached US$2,078 per ounce, a record high in 2011. The cumulative increase during the year reached more than 30%, surpassing the increase in major global stock markets during the same period. After a lapse of 9 years, the spot gold price once again reached an all-time high. After the outbreak this year, we are exclusively bullish on gold. At that time, the price of gold was more than US$1,500 per ounce, and it has risen by more than 30% so far. At that time, the author published several articles in a row, suggesting investors to buy gold to hedge. Against the background of rising risk aversion, it has become a reality for the price of gold to exceed $2,000 per ounce. In the second half of the year, gold is still shining. This means that if you buy physical gold or related objects at the beginning of the year, your yield will far outperform the stock market and CPI so far, and it will also be N times the yield of bank deposits in the same period. .