Can Gold Still Be Purchased? Is It Still a Good Investment?

Recently, the price of gold has been rising quite sharply. I'd like to discuss the matter of buying gold to provide some popularization. Please note that I'm not writing this article just because the price of gold has increased; I'm doing it purely to provide some general knowledge. Later in the article, I will share my judgment on the future trend of gold. I'm writing this as a form of sharing.

 

— 1 —
 **The Difference Between Jewelry and Gold**

Generally, the most common items people buy from stores like Chow Tai Fook and Lao Feng Xiang are jewelry, which are mostly used for decoration, as gifts for family members, or for significant occasions such as weddings and children's first birthdays.

However, when we talk about gold, we usually refer to it as an investment. No one buys gold for investment purposes from a jewelry store; they would go to a bank instead.

Jewelry comes with a processing fee, which is quite expensive. Investing in this way would be a waste, so if you're thinking of investing, never buy jewelry from a store and consider it as an investment in gold.

Many people have become smarter and now buy gold bars from banks. After purchasing, they take the bars to some gold casting shops to have them made into the style they want, which is much more cost-effective.

I've seen some guides on this process on platforms like Xiaohongshu (Little Red Book, a chinese app), which you can check out for the procedure.

— 2 — 
**Where Can Gold Be Purchased?**

Gold can be divided into online gold purchases and physical gold purchases.

State-owned banks provide channels for direct online purchase, including Alipay, where you can make purchases directly.

Taking the Bank of China as an example, you can open the app and make purchases during workdays.

 — 3 — 

The Difference Between Online Gold and Physical Gold

Online gold can be bought and sold at any time, which is very flexible, similar to our usual practice of buying stocks and funds.

The people in the bank call it 'accumulated gold,' which is essentially the direct online purchase of gold. You can also choose to take physical delivery later.

Physical gold can be arranged with the bank for an appointment, and you can go to the bank to handle it offline.

— 4 — 

Is There a Decrease When I Sell the Gold I Buy Now?

Let's first understand what the customer's selling price is and what the customer's buying price is.

The customer's buying price is the current price per gram of gold you purchase. For example, the current gold price I found at the Bank of China is 520 yuan per gram.

However, if one day you want to sell it, the bank will repurchase the physical gold at a price of 506 yuan per gram.

So, there is a decrease.

— 5 — 
How Much Does It Cost to Keep Gold with the Bank?

Different banks have different regulations. For example, many banks offer free gold custody for private customers (with a threshold of 6 million yuan for banks like China Merchants Bank and Bank of China).

Let me popularize this: safe deposit boxes come in small, medium, and large sizes.

Small boxes are thinner and are generally used to store customers' valuable documents and property deeds.

Medium boxes are heavier and can store gold, depending on your quantity.

If it's not a private bank, the annual fee for a large box is about 5,800 yuan, and for a medium box, it's about 3,600 yuan.

If you want to open a second safe deposit box, the fee is calculated at a 30% discount.

— 6 — 
When Is There a Discount on Buying Gold?

There are discounts when buying gold through the counter.

Additionally, different banks may also offer promotional discounts. For example, the Bank of China offers a one-yuan discount every Friday. You should consult the bank for specific details (I've been buying for a long time).

— 7 — 
How Did I Buy Gold?

I have bought both online accumulated gold and physical gold.

My physical gold is not for investment purposes; I plan to use it as a reward for my daughter when she gets married or when my son-in-law has a child. These are things that will happen in twenty or thirty years.

So, I don't care about the fluctuation of gold prices, and I keep all of it in the bank for safekeeping.

— 8 — 

My View on the Gold Trend

I can only say it's not calm, and it will continue to rise in the future.

This is my long-term judgment. There will be more turbulent times ahead. By the way, I must say that everyone needs to take responsibility for their own decisions, and I do not constitute investment advice.

So, I write some popularization about gold, hoping it can help you. That's all!