GOLD Industry Research Report

Because of its special nature,gold itself has the dual properties of commodity currency.As a commodity, for its elegant appearance, gold is usually used as jewelry by people, and as its unique physical and chemical properties, gold is also often used in industrial and medical technology industry.As money, after the transformation of the global financial system, gold has always been the important reserve money, it has the character of risk aversion and maintainting financial stability is what any other currency does not have.Gold market changed a lot in2013, the gold market which has been rising for12years ends, gold prices fell by more than30%, while gold prices change makes a big difference with gold industry.Gold prices droppingl makes the gold industry under attack, the gold industry’s share price has greatly decreased, and industry profits are greatly reduced.So it is necessary to set out respectively from two aspects of the gold goods attribute and monetary attribute, commodity attribute causes that gold is affected by supply and demand of the market, monetary attribute causes that gold is influenced by macroeconomic factors, so we should analyze the supply and demand gold market and macroeconomic factors on the price of gold, thus predict the future prices of the gold and the prospect of the gold industry.Gold reserves has been identified that the world’s total gold resources is about89000tons,there are more than80countries around the world where produce gold, including South Africa, the United States, Russia, Australia, Brazil and so on.In China, shandong province has the richest gold reserves,where is followed by shaanxi, sichuan, gansu and other provinces.From the perspective of the supply and demand of global gold market,the supply of the global gold market can be roughly divided into three aspects:the primary supply of gold-mining gold, the secondary gold supply-recycled gold, thegold three-level supply-official reserves of gold supply. Global gold demand mainly includes jewelry demand, industrial technology demand, investment demand and the demand of the central bank, etc.In2013, gold prices tumbling makes the supply of the mineral gold and recycled gold reduce,so the global supply of market will reduce in the future.The reduce of the ETF outflow will increase the investment demand, the Indian government for the control of the gold import is expected to relax,which will increase jewelry demand, international political situation of the unrest will increase the the demand of the bank purchase and investment demand, so the golbal of the gold demand will increase in the future.The increase of supply and the decrease of the demand should promote the rise in the price of gold.From the macroeconomic factors, a few days ago Russia attacked Crimean,which caused international political tensions,the expected global economic recovery may lead to inflation expectations, the reduce of the ETF outflow and loose monetary policy of some individual economies will support the price of gold.As one of China’s most influential companies in the gold industry, Shandong Gold Mining Co., Ltd has always been China’s leading companies in the industry.Through the analysis of shandong gold company’s basic situation, development strategy and the ability of operation, the ability of financial and enterprise value, we judge the company is a company which has the investment value.Based on our analysis, we forecast the future price of gold will rise, and the rising of the gold price will promote the development of gold industry, so we believe that the future of gold industry will develop towards the good direction, and the gold industry has its investment value.