How does cold weather affect the demand for gold?

Cold weather has little effect on gold demand, but it is affected by seasonal changes. The basic factors affecting the demand for gold are:

First, the inflation rate directly affects the demand factor of gold investment.

When the Organization of Petroleum Exporting Countries (OPEC) invests most of its oil revenue in gold, the demand for gold will increase in order to reduce the high inflation in oil exporting countries.

2. Jewelry, electronic products, dentists, medals, currency and other gold demand factors.

The demand for gold in jewelry, electronics, dentists, medals and currency industries is another factor that affects the demand for gold. Generally speaking, the industrial demand for gold is mainly determined by the speed and price of world economic development. If the price is high, it will greatly increase the cost of industrial production and its demand will decrease; On the contrary, the demand for gold will increase.

The demand for gold in jewelry industry accounts for a large proportion of the whole market demand. Generally speaking, developed countries attach importance to the beauty of gold jewelry, while in developing countries, jewelry is regarded as a means of preserving value.

Dentists have a long-standing demand for gold, mainly because of its acid resistance and corrosion resistance, beautiful color and representative value. From the perspective of aesthetics and durability, the dentist's demand for gold is persistent, which of course depends on national income. In addition, the casting of gold coins and the production of gold medals are also important factors affecting the demand for gold.

Third, social, political, economic and military conditions are also important factors that cannot be ignored.

The world social, political, economic and military situation not only affects the supply, but also affects the demand for gold. For example, the Iran-contra incident, the Soviet Union's invasion of Afghanistan, the Gulf War, the Bosnia-Herzegovina War and the recent US war on terrorism will all increase the demand for gold in the world, especially in Asia.

Four, the relevant countries on the management of gold laws and policies change factors.

Changes in laws and policies related to gold management in relevant countries will also affect the demand for gold. For example, 1974 12 3 1, the U.S. government lifted the control policy prohibiting citizens from buying gold, which directly affected the market demand for gold. For another example, after the British government abolished the control of gold trading, the social demand for gold increased sharply.

Five, seasonal factors

The demand for gold will also be affected by seasonal changes. In western countries, Christmas is the peak season for gold jewelry sales. Therefore, the price of gold in the fourth quarter of each year is usually higher. Similarly, in China, the purchase of gold ornaments around the Spring Festival often supports the price of gold in the first quarter.