As the price of gold surged significantly, Ms. Huang in Fujian observed the continuous growth in the value of her online gold storage. In just two weeks, the price of the 99 grams of gold she had purchased rose from 48,800 yuan to 50,770 yuan. As an investment commodity, gold has attracted attention from many banks promoting related services, attempting to achieve growth in performance by leveraging market enthusiasm, against the backdrop of declining deposit interest rates.
Reporters have learned that currently, some banks are keen on promoting gold accumulation services, and customers can purchase gold in two ways: active accumulation or regular savings. Through this method, customers can gradually accumulate gold at the bank and ultimately withdraw the physical product.
Although gold saving services have been favored by banks and consumers, due to the volatility of the gold market, this investment method still carries certain risks. Starting from February 28, international gold prices have shown a continuous upward trend, with the flagship New York Commodity Exchange gold futures contract price at one point breaking through $2200 per ounce, setting a historic high. Meanwhile, domestic gold prices have also continued to rise, with the “Shanghai Gold” prices recorded at the Shanghai Gold Exchange also showing a stable upward trend.
As gold prices continue to climb, banks have launched various promotions to promote gold saving services. Banks allow customers to purchase and accumulate gold through the gold saving service, which can be done through active accumulation or fixed investment, and it is deposited into a special account, where it can later be exchanged, redeemed, transferred, or pledged.
To attract customers, many banks have set relatively low investment thresholds for gold saving services. The starting point for fixed investment is usually 1 gram of gold (or an equivalent of 500 yuan), and it can be increased by 0.01 gram (or 1 yuan). Some banks, such as China Merchants Bank and Industrial Bank offer promotions where customers are gifted a small amount of gold after reaching a certain accumulation period to entice customers.
Beyond direct gold gifts, other banks offer promotions such as lotteries and discounts. For example, the ICBC Xiangyang branch launched an event called “Accumulate and Receive Gifts,” where participants can enter a lottery during the event. The Bank of China Xinjiang branch offers single-purchase promotions and discounts on designated dates, providing more incentives for customers making large purchases.
Recently, the domestic gold market has continued to boom, and gold storage has become a hot product eagerly sought after by investors. A customer manager from a state-owned bank in Shenzhen revealed that the number of customers inquiring about gold storage might have doubled. Sales have correspondingly increased, and the completion speed of indicators related to precious metals business has clearly accelerated.
In recent times, as a result of marketing around traditional festivals and special anniversaries, some customers have purchased physical gold. However, against the background of sharply rising gold prices, more customers are starting to focus on investment needs and turn to the more flexible gold storage products. A senior customer manager revealed that some customers even engaged in large-scale buying behavior, investing over 200,000 yuan in gold storage at one time.
However, it is noteworthy that in the face of rising gold prices, some banks have begun to adjust the threshold amount for personal gold savings services. For instance, China Construction Bank has announced that the starting amount for personal gold savings will be increased from 500 yuan to 600 yuan, effective from March 7, 2024. Industry insiders explain that this adjustment is mainly due to the rise in gold prices, which has directly raised the minimum investment amount for customers. If gold prices continue to rise, more banks may follow suit in making adjustments.
Investors have diverse attitudes towards investment: Some investors, like Ms. Huang, have lost interest in traditional bank deposit rates due to their persistent lows and have turned their attention to gold, which seems to be a more value-preserving and stable investment. The gold savings service provides investors with a variety of options, not only allowing them to enjoy investment returns in their accounts but also to withdraw physical gold at the right time for personalized jewelry processing.
At the same time, the rapid rise in gold prices has also led some investors to rebalance their portfolios. Li Ming is one of them; he previously made small investments in gold through banks and has achieved modest gains. Now, he plans to increase his investment by shifting his soon-to-mature fixed deposits into the gold market. Meanwhile, other investors choose to cash out at high prices, such as Ms. Ding Ting, who has earned profits from her three-year gold savings investment and decided to exit the market at a high price.
Although gold savings investments are attractive, industry experts still advise investors to remain cautious, as this type of investment also comes with certain transaction costs. For example, some banks charge a fee for storing or withdrawing gold savings, with rates generally ranging from 0 to 0.5%, while the redemption fee may be as high as 0.5% to 1.5%. For instance, in a gold savings product offered by a state-owned bank, the fee is set at 0.5% for both storing and redeeming.
The redemption price of gold savings is determined by the bank, and this price is usually lower than that of physical gold bars. There is a certain price difference when buying and redeeming physical gold; nonetheless, this difference is usually not significant.
Even without considering other costs, gold savings, as an investment product, do not guarantee a sure profit without loss. Gold prices themselves are subject to significant fluctuations. Taking 2023 as an example, after reaching a periodic high in mid-September, the price of December gold futures on the New York Mercantile Exchange fell by $113.8 per ounce during the period from September 25 to October 5, a drop of 5.85% over nine consecutive trading days.
Experts point out that gold prices are influenced by many factors, hence the large fluctuations. Before purchasing gold investment products, investors need to recognize the risks involved and consider carefully. Especially when facing significant price fluctuations, one should not blindly follow the trend and buy in.
Regarding the future direction of gold prices, although the industry holds a relatively optimistic view, some analysts believe that considering the risk of inflation in the United States and the uncertainty of the timing of interest rate cuts, the US economy may be cooling down under the current high-interest rate environment, but the easing of US Treasury supply pressure could lead to a downward trend in the yield center of US Treasuries, thereby providing upward support for gold prices.
In the medium to long term, as the global trend of de-dollarization deepens and central banks around the world increase their gold purchasing, some believe that gold may have entered its third historic bull market. However, if the United States can achieve an interest rate cut and a soft economic landing similar to that of 1995 to 1996, and find new economic growth points in the artificial intelligence industry revolution, gold prices might still experience an adjustment.
