A large part of the demand for crude oil comes from industrial demand, accounting for about 40%. On the contrary, the demand for gold is basically pure investment demand and jewelry demand. Because of the close relationship between crude oil and industry, crude oil is very sensitive to changes in economic factors, such as industrial productivity and manufacturing demand.
At the same time, gold is closely related to the changes of monetary factors, such as the trend of real interest rate, inflation and the appreciation or depreciation of the US dollar. For example, based on the annualized data of the past 50 years, the correlation between gold price and inflation is 0.5, while the correlation between crude oil and inflation is about 0.35.
Crude oil and gold come from different product resources, which will also have a very important impact on their prices.
Most crude oil is a by-product of metals such as lead, zinc, copper and gold. In this way, the relationship between crude oil production and crude oil price is not as close as that between gold production and gold price.
Crude oil fluctuates more.
Compared with gold, crude oil is more volatile.
Small market scale, low liquidity, and demand fluctuation between industries and stored-value uses lead to increased volatility of crude oil trading.
In recent years, the volatility of crude oil is obviously higher than that of gold. However, for enterprising investors, this means buying low and selling high. In the past ten years, crude oil experienced double-digit growth in seven years, and also outperformed the Standard & Poor's 500 in seven years. Since the global financial crisis, the investment in crude oil has increased sharply, and there are more channels to invest in crude oil. Crude oil, like gold, is used to hedge inflation and economic pressure.
4 Gold investment platforms are mostly illegal platforms.
At present, only the gold trading products of Shanghai Gold Exchange and Shanghai Futures Exchange are formal gold trading platforms in China. There are also platforms from abroad that do not conform to domestic laws and platforms that have not obtained domestic gold trading qualifications. There are many problems in these platforms, so investors should choose carefully. There are many platforms approved by the government to officially trade crude oil in China.
Personally, crude oil is better.