According to statistics recently published data show that China this September consumer price index (CPI) rose by 3.6%, gain a 23-month high. Facing strong inflation expectations, how to preserve and increase the value of the assets of the residents?
And correspond to the expected rise in inflation, record commodities prices, in gold, for example, since price increases this year have exceeded 20% in all investment gains in the first. In the context of global inflation, how to resist inflation through commodities investment on our wealth erosion, in a column in this series, we will give you detailed analysis of the investment value of commodities such as gold.
When we go back to the 70 ’s of last century, major countries of the sharp drop in the purchasing power of money, such as the United States in 1974 and 1975 respectively and 10.9% the rate of inflation. But this phase which is first period of the great bull market, gold, gold prices rose from $ 35 per ounce to $ 850 per ounce (gold price data sources in this article: World Gold Council, BLOOMBERG and WIND information. ), Rose as much as 24 times, and this is not just a coincidence.
Gold as the world in the field of special goods, both property and monetary properties of goods. Gold is the property of goods means that it can meet the needs of industrial, commercial and other aspects; in addition to the properties of goods, gold as a non-credit currency existing in the world, and unlike notes, deposits and other monetary terms, because it is scarce precious metals, of its own with a very high value, rather than just the value of other currencies represent. Therefore, the asset value of investment gold has always been regarded as the best way, and a store of value.
However, the way of domestic investors to invest in gold but more limited, including commercial banks launch of physical gold, paper gold, or bodies acting individual investors in the form of gold investment. Such expertise has certain requirements for general investors own requires investors to judge for themselves the investment opportunity, and the investors to invest in physical gold itself is facing a liquidity problem is not high, and high costs. In contrast, existing in the form of a public-fund, investment gold class financial products you have “expert investment finance, collection” advantage, thus providing our investors share international gold proceeds with a popular investment tool.
YINHUA fund management company is issued “Silver China anti-inflation theme Securities Investment Fund (LOF)”, the Fund as domestic first only “class bulk merchandise” investment concept of Fund, through investment gold ETF, outside bulk merchandise Fund, can for investors provides a low cost to Gets Gold spot investment proceeds of investment channels, thus strive to maximum degree to for investors implementation assets hedge value-added, and against inflation risk of investment target.
A, gold–
Sharp weapon against inflation worldwide
According to the study of World Gold Council shows over the years, the steady rise in the price of gold. Value of the currency in gold terms in all the major countries including the US dollar, euro, Yen and Sterling, its real value is in the past 40 years there have been varying degrees of decline.
In China, gold against the inflation bad credit car loans characteristics also have a strong history of arguments in support. We compare the past 30 years of international and domestic gold yields CPI index, total CPI index of more than 12 years 5%, and in accordance with international practice, which already belongs to “inflation”, during which international gold yields an average of 12.05% per year. In addition, in the past decade, domestic CPI is 20.09% per cent, while international gold Trojan yields 248.39%. That is, from the historical experience, domestic investors through the investment of the international gold, hedge against inflation, achieve asset effect can be achieved.
Second, gold–
Long-term residents wealth gains of magic
The long term, investment in gold can not only resist the erosion of wealth to the residents of inflation, can also play a role in the accumulation of wealth.
In 1900, the gold price: US $ 20.67 per ounce, as of September 19, 2010, gold prices as high as $ 1281.3 per ounce. We through comparison gold and domestic composite index, and developed and emerging market main market stock index of proceeds rate found, dollars price of gold in 1 years following, and 1 years, and 3 years and 5 years of investment performance are beyond into comparison of stock index, especially worth note of is, in more long of time interval within (including 3 years and 5 years), gold have very stability of investment benefit ability. Such as the dollar price of gold in the past three years and annualised rate over the past five years, respectively, and 24.3%, the other major market stock index returns, and this also underscores the long-term investment value of gold as a financial investment.
Today, gold is no longer appear as mere consumer goods such as jewelry, quenched it had in years, quietly completed a magnificent investment products from consumer goods to turn around. Gold against the risk of inflation, asset value of investment properties have also gradually recognized by the vast number of investors and customers.
With the gradual development of gold investment and growth, in recent years the gold ETF to facilitate trading and low transaction cost advantages such as rapid rise. For example, State Street Global Advisors in 2004 the company issued gold ETF–street of gold in trust (StreetTracks Gold Trust), as of 2009, September 17, the surprising gold ETF only for investors to keep a total of 1300.83 tons of physical gold, according to the market price of gold, the gold nuggets worth about us $ 53.271 billion. Please attention to next column YINHUA Fund. (CIS)
Anti-inflation theme YINHUA Fund (LOF), column (a)
YINHUA fund management, product development and international cooperation Department
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