Financial Knowledge

What are the investment channels of physical gold?

June 17, 2020

For general investors, it is more practical to choose physical gold for investment. Therefore, physical gold is a more active investment product in the gold trading market in China. So, through which channels can investors invest in physical gold?

Gold shop is a general channel for people to buy gold products. But generally through the gold shop channel to buy gold, it pays more attention to its collection value rather than investment value. For example, buying gold ornaments is a more traditional way of investment. To a large extent, gold ornaments have become practical commodities. Moreover, the prices of gold ornaments are far from each other when they are bought and sold, so the investment is of little significance.

Investors can also invest in physical gold through bank channels, including standard gold bars, gold coins and other product forms. For example, the gold business of Agricultural Bank of China, BOC Olympic gold and Shanghai gold exchange for individuals is currently mainly represented by banks. The Panda Gold Coin launched in China is issued by the people’s Bank of China, which is also a currency form. Even if it depreciates, it will have considerable value, so its investment risk is relatively small.

In addition, investors can also invest in gold through the gold delayed delivery business platform, which is the most popular investment channel at present. Delayed delivery of gold refers to a spot gold trading mode in which investors delay physical delivery to any working day after the second working day after buying and selling standard gold bars at real-time prices. Taking the Golden Road business of golden road investment as an example, the hbi-ccb standard gold launched by Golden Road platform is the current “investment gold bar” in China The “Golden Road” takes into account the two advantages of paper gold and physical gold in the bank. The RMB quotation system is synchronized with the international gold market. Investors can not only purchase physical gold bars through the Golden Road platform, but also “buy low and sell high” through the delayed delivery mechanism. It is a very good investment tool for gold investors to take advantage of the fluctuation of the price of gold.

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