Transcript Gold Market - University of Hong Kong

Wang Siying, Cindy
2008801369

Usage
◦ Historically:
 medium of transaction
 jewelry
 a relative standard for currency equivalents specific to
economic regions or countries
◦ Investment:
 hedge or safe haven against wars, economic
depressions, and currency-based crises
 way of storing of value
 speculation




Coins and small bars
Exchange-traded gold (SEHK, SHFE)
Gold certificates
Gold orientated funds

Stability:
During the last financial crisis we have recently
experienced, the price of gold from the top to the bottom
reduced 20%, ranking the least decreasing rate among the
entire investment products

Information:
More complicated for stocks. Have to concern the
performance of the companies you invest in. Have to think
about the facticity of their financial statement and other
market information.

Market efficiency:
Investors of gold market are more decentralized and
international. It is harder for a single individual to control the
gold price.


Demand and supply
USD: negatively related.
◦ Both are reserve assets
◦ Relationships with world economy.
◦ Gold measured in terms of USD


Worries of inflation (Oil price)
International policies (especially USA and
countries product oil): wars and unrests

China’s gold market
◦ More influence on world gold market




Inflation
Bull market for USD
USA fourth quarter GDP in 2009
Increase of interest rate





http://goldprice.cn/gold-price-history.html
http://huangjintouzi.blog.163.com/blog/stat
ic/86009020101131822582/
http://www.chinavalue.net/Media/Article.asp
x?ArticleID=47365
http://goldnews.bullionvault.com/china_gold
_rush_123120091
http://www.invest.gold.org/sites/zh/how_to_
invest/gold_orientated_funds/