Ning Caijin: How to Specifically Operate Interest bearing Gold Investment Products?What about the real risks?

Ning Caijin: BreathablegoldHow to operate investment products specifically?What about the real risks?


Gold fixed investment is generally considered a low-risk long-term investment method. In recent years, based on this, many banks have launched interest bearing gold investment products. Purchasing gold can also generate interest like deposits, and investors can withdraw or choose to withdraw when redeeming. Investors can directly operate on mobile banking, with a low threshold and convenient and labor-saving. So, how exactly should we invest in this product?What about the real risks?



Saving gold also comes with interest


Interest bearing gold investment products first appeared on some Internet financial platforms, such asAu9999The quotation is based on the benchmark. At present, banks offering such products include Bank of China's Provident Fund, Ping An Bank's Ping An Fund, China Merchants Bank's Gold Account, and Minsheng Bank's Provident Fund.


After purchasing the above gold investment products, the share of gold is usually calculated in grams and stored in a "gold account", which can be operated through online channels such as online banking and mobile phones(It can also be purchased at branches)Therefore, there are similarities with "paper gold" investment.


However, unlike paper gold, a gold account only needs to make an appointment at the branch and pay a certain processing fee to extract physical gold, while paper gold does not support the extraction and delivery of physical gold. The investment threshold for gold accounts is lower than paper gold, the lowest1Starting from yuan, but usually with a fixed trading period every day, it's not as good as paper gold“2424-hour uninterrupted trading.


More importantly, a gold account can generate interest, which means that investors may enjoy the dual benefits of depositing gold and fluctuating gold prices. Moreover, gold accounts generally have two types of account funds: current and fixed accounts, which sacrifice a certain amount of liquidity but have higher "interest".


Multiple considerations for calculating returns


So, how should the returns of the gold account be calculated?Four aspects need to be considered: first, interest; second, bid and sell price difference; third, transaction fees; and fourth, bid and sell point difference.


Firstly, there is interest, and the interest income of the gold account is calculated based on the share of gold. Assuming the current interest rate in the gold account is0.35%Investors290element/Ke Buying100Kejin current account, held90If sold in days, the interest income during the investment period will be100×0.35%×(90/360)=0.0863Gram.(Note: In this example, the investment period is divided by360Days, but some banks count as365Days.)



Therefore, at the time of sale, the total position of the gold account is100.0863Gram. On this basis, the cost average price can be calculated, i.e290×100/(100+0.0863)=289.749946element/Gram.


Next is the bid and sell price difference, which is used to calculate the total investment return. Investment income from gold account=(Selling price of gold - average cost price)× Selling shares, such as in90The price of gold rose to300element/G, then investment income=(300-289.749946)×100.0863=1025.88998Yuan.


Obviously, in this case, the gold price rose when sold, resulting in a certain investment return. Conversely, if the gold price drops significantly during the investment period, the investment will also face losses. Therefore, although a gold account can generate interest, it is not a guaranteed gold deposit, and the main income still depends on the fluctuation of the gold price.


Once again, we also need to consider the handling fees during the transaction process. The investment methods for gold accounts are usually divided into active buying and fixed investment, and the fee collection rules of different banks vary. Generally speaking, the transaction fee for active buying is higher than that for gold placements, and the charging methods for placements are divided into front-end fees and back-end fees. If given265element/The price of grams, actively buying at once10The percentage of shares is, and the commission rate is0.5%The total handling fee is265×10×0.5%=13.3Yuan.


Most banks do not charge transaction fees, and the transaction costs in gold accounts are mainly reflected in the spread between buying and selling. Similar to the trading of paper gold, investors trade at the buying and selling prices of banks, and there is a certain "spread" between the buying and selling prices of precious metals at the same time, which increases trading costs. Assuming the unilateral point difference is0.35element/Ke, the total amount of transactions is0.7element/G, if at the current gold price270element/Calculate in grams, then the percentage of spread to gold price0.26%, which is equivalent to an invisible "handling fee" charged during a transaction.


In summary, although gold itself can generate interest and increase investment returns in such products, investors cannot ignore the volatility of gold prices themselves, as well as factors such as transaction costs such as transaction fees and buy sell spreads.



I am Ning Caijin. Every day, I interpret economic news for you, analyze market sentiment changes, analyze investment trends, convey valuable investment concepts, and provide insights into goldcrude oilWe have in-depth and unique insights into major global financial markets.


Editor of this article: Ning Caijin