The role of gold market in financial market
The gold market plays an important role in the national economy and financial operation;
(1) The gold market is an important investment and financing market, and gold investment has become an important part of investors' investment portfolio.
(2) The gold market has the function of hedging, which increases the ability of investors to transfer risks. Financial institutions and gold-producing enterprises can hedge, conduct effective hedging transactions and avoid the risks brought by price fluctuations.
(3) The gold market has the function of asset securitization. Commercial banks' paper gold, gold ETF and other products securitize gold, making it more convenient for investors to invest.
(4) Gold reserves are an important part of the country's foreign exchange reserves. Although the monetary attribute of gold has been greatly weakened, it is still an important indicator to measure a country's economic strength and international payment ability, and it is also an important part of foreign exchange reserves of all countries in the world.