Entering ChinaThe international precious metals market can be described as “divided by two poles”: the price of gold is fluctuating downward while that of silver is rising against the trend. This divergence has left many investors perplexed: Why has gold lost its popularity as a safe-haven asset? Why has silver, with stronger industrial attributes, been surging? Under the current circumstances, should one bet on gold or silver?
Since the beginning of this year, the international gold price has risen by more than 10%, reaching a maximum of US$2,950 per ounce, approaching the high point of US$3,000 per ounce previously predicted by the market in 2025. However, since February 25, the international gold price has shown a downward trend, and related topics have even rushed to the top of the hot search.
The reporter saw that on February 25, after the international gold price soared to 2956 US dollars / ounce, it failed to continue the rally, but began to turn down; On February 27, the international gold price fell below the $2,900 / ounce mark, down 1.33%; On the last day of February, the international gold price fell heavily to US$2,832.46 per ounce, and finally ended up falling by 0.68% to US$2,858.58 per ounce, drawing a dramatic end to the trend of the gold market in February.
Affected by the international market, the price of domestic pure gold jewelry fell by nearly 20 yuan/gram in a few days. The reporter saw that on February 25, the price of pure gold jewelry of Chow Tai Fook, Chow Sang Sang, Luk Fook Jewelry and other brands was basically stable at 895 yuan/gram, and on February 26, the price of pure gold jewelry of major gold brands fell to 886 yuan/gram. On February 28, it continued to decline, and the basic price was 876 yuan/gram.
Looking at the silver market, it is a different boom. On February 26, the international silver price reached 31.75 US dollars / ounce, the domestic 999 sterling silver price was 7.4 yuan / gram, and the 925 silver price was 6.8 yuan / gram. The reporter learned from the interview that the current silver price has hit a 12-year high, and the increase has reached 15% this year, steadily surpassing gold.
Nowadays, walking into the precious metal area of the mall, you can clearly feel that the pure gold jewelry has “fallen out of favor”. “Nowadays, many customers ask ‘what is the price of gold bars’ and ‘what is the minimum gram of gold bars to invest in’, and many people don’t even go to the jewelry area to ‘hang out’.” In the old temple gold store of Yaohan in the urban area, the shopping guide told reporters.
Changes in consumer mindset can be a visual reflection of the gold investment market. Recently, Mr. Zhang, an investor, chose to sell some of his gold and increase his holdings in silver ETFs instead. His reasoning was that “gold is suppressed by the US dollar in the short term, while industrial demand for silver is more certain.” ”
But seeing such “polarization”, more investors are confused: “Should gold or silver be entered, can this point still be entered?” ”
Analysis of a wealth consultant of a bank in Jiaxing: “Silver usually reflects the trend of gold. When gold enters a bull market, silver is often a close second, sometimes leading to larger percentage gains due to its smaller market size. ”
However, when it comes to investment, the investment attributes of gold and silver are very different: the main demand for gold is concentrated in financial and physical investment, while industrial demand accounts for only about 7%, and the price volatility is relatively small. Silver accounts for 52% of industrial demand, while investment and consumption demand account for about 26% and 22% respectively.
“Historically, silver prices have been more volatile and less suitable for long-term investments. If investors have strong short-term analysis and speculative ability, silver is a good choice, but we must pay attention to controlling risks and avoid blindly chasing higher or excessive speculation. In addition, from the perspective of household asset allocation, gold is a must-have, but at present, the international gold price is at a high level, and regular investment can reasonably avoid the risk of price fluctuations. The adviser reminded that in the ever-changing financial market, investors still need to remain calm and rational.
