China Construction Bank Raises Gold Accumulation Threshold as Prices Soar
Xinhua News Agency, Beijing, March 12 (Xinhua) – The recent surge in gold prices has prompted China Construction Bank to adjust its thresholds for gold accumulation business. With the price of gold on the Shanghai Futures Exchange staying above 500 yuan/gram for several days, more investors are looking to capitalize on the trend.
According to a report in the “China Securities Journal,” banks have seen a significant increase in inquiries about gold accumulation business, especially during periods of price hikes. Investors are eager to take advantage of the buying and selling price differences that come with accumulating gold.
In response to the market changes, China Construction Bank announced that it would raise the starting point for regular accumulation to 600 yuan. Analysts are advising investors to invest rationally and wait for a correction before buying gold products when prices reach historical highs.
The popularity of gold accumulation business is on the rise, with customers looking to exchange their accumulated gold for physical gold, particularly smaller weight gold bars like 10 grams. Some bank branches are even running out of stock, indicating the high demand for physical gold.
The process of gold accumulation involves customers opening a gold accumulation account through the bank and buying gold within a certain period. After accumulation, the gold can be converted into physical form, redeemed, transferred, or even pledged. It is seen as an upgraded version of gold fixed investment.
Many banks have already launched this type of business, with large state-owned banks and some joint-stock banks experiencing a surge in deposit business as a result. Customers are drawn to the convenience and flexibility of gold accumulation, allowing them to diversify their investments and manage risks effectively.
As gold prices continue to soar, banks are adapting to the market conditions by adjusting their business thresholds. China Construction Bank’s decision to raise the starting point for gold accumulation reflects a proactive approach to managing the risks associated with price fluctuations.
Industry analysts are urging investors to be cautious and wait for a correction before investing in gold. They emphasize the importance of investing rationally and choosing gold products that align with their financial resources and risk tolerance levels.
For more information or collaboration opportunities, please follow the official WeChat account of China Economic Net (name: China Economic Net, id: ourcecn).