1. Why has the gold price recently surged so much?

The gold price has indeed increased significantly. Spot gold was over 500 yuan/gram in September, and now it has risen to over 620 yuan/gram. Why has the gold price surged so much?

It is due to the uncertainty of the international situation: global currencies are undergoing interest rate cuts, and the situation in the Middle East is tense.

Gold, as a safe-haven asset, experiences a surge in demand when people are not optimistic about the US dollar, the euro, or the British pound. This leads to a significant increase in the international gold price, driven by the demand for a safe haven.

2. Will the gold price continue to rise indefinitely?

This depends on the state of the world. The less secure the world becomes, the more the gold price will rise. When the world is at peace, the gold price will fall. Historically, the price of gold has always fluctuated, with periods of increase and decrease.

3. Why are many gold shops closing despite the surge in gold prices?

The closure of gold shops is due to the difficulty of their business operations.

On one hand, as the gold price rises, the cost of raw materials for procurement upstream increases.

Advertisement

On the other hand, due to the sluggish economy, consumers are less willing to buy high-priced gold jewelry, preferring instead to purchase gold bars, gold coins, and gold funds. Gold shops are not making money, which is why you will find an increasing number of them closing down.4. Is it a good time to buy gold now?

Gold should be purchased at lower points, not at high points; it is advised to wait a bit longer.

There is a Federal Reserve interest rate meeting in November, which will affect the trend of gold prices.

5. Can gold be used for fixed investment?

Gold can be used for fixed investment because gold prices fluctuate; if you invest in gold on a fixed schedule, it can smooth out the volatility of gold prices.

6. What should ordinary people pay attention to when buying gold?

1. When ordinary people buy gold, they must use their spare money, and it should not exceed 20% of your total family assets.

2. Do not speculate on gold for short-term gains; only long-term holding can outpace inflation.

3. If you do not know where the lows and highs are, take a look at the gold price chart, and you will understand. Therefore, you should buy in installments to reduce risk.

7. Where should one go to buy gold?You can purchase gold at a bank or a gold shop. Compare the prices to see which is more suitable. If you choose a gold shop, buy from a large, reputable one, as it may offer more security.

It is important to note that everyone should avoid buying gold from overseas. There is a consumption tax involved, and you also need to consider the risks associated with exchange rates.