Record highs, driven by investment demand and strategic reserves. This year's investment enthusiasm has far exceeded expectations, not only individual institutions have increased investment, but central banks have also increased their holdings**. Behind the favor, the decline in the credit of the US dollar has also become an important reason. What will be the trend of ** next year?Is it still a good investment target for investors?The reasons are not complicated, and changes in supply and demand are the main driving force. With the gradual increase in investment demand and the strategic reserves of central banks, this year** has shown a small bull market. Investment demand and strategic reserves from central banks were the driving factors.
According to the data, China's domestic jewellery demand grew by 8% year-on-year, and global central bank net purchases** also hit the third highest level on record. Central banks have been important buyers, accounting for about one-fifth of the world's total gold mining. Therefore, the investment needs of individual institutions and the strategic reserves of central banks have contributed to the small bull market this year. The US dollar is no longer safe, which is also one of the reasons why it is favored. Global central banks continue to increase their holdings, not only because of their safe-haven properties and safety, but also because of their high liquidity.
In fact, it is already the second most liquid asset in the world after the S&P 500, with an average annualized return of more than 7% over the past 50 years. At the same time, the depreciation of the US dollar has also increased the attractiveness of **. Since 1971, the purchasing power of the dollar has lost more than 98%. The creditworthiness of the US dollar has declined, especially in the midst of some geopolitical tensions, and the safety of US dollar assets has been questioned. This has made people and central banks more inclined to convert assets from the US dollar to **, which will drive the trend for next year**, and the traditional view is that the US dollar is popular because of the strength of the United States.
But in fact, people choose to believe in ** and the dollar, mainly because of the credit behind them, rather than the military strength. ** does not need military force to endorse it, and in fact the credit of the dollar does not need to be backed by military force. From an investment perspective, the World Association expects central banks to continue hoarding in 2024. If some geopolitical tensions continue to develop in the future, as well as the continued depreciation of the dollar and other countries' banknotes, then this strategic need and investment need is likely to continue next year, which will eventually be reflected in the future. To sum up, the investment demand and strategic reserves are the main factors driving the current market.
At the same time, the dollar's declining creditworthiness has also exacerbated its attractiveness. From an investment perspective, 2024 is still worth investing in. So what is your investment intention for **?Do you agree on the value of investing in the next year?We look forward to hearing from you and discussing.