Precious metal trading business: refers to the business that Bank of Beijing Limited, as a financial member of JL Haijin Exchange, accepts the entrustment of customers according to the relevant rules of the Exchange, and provides relevant agency services under this agreement for the precious metal trading conducted by customers on the Exchange, and the trading risks are entirely borne by the customers themselves. Before F 1, Bank of Beijing provided clients with gold and silver trading as agents for precious metals, including spot gold trading and spot gold and silver deferred settlement trading. As far as silver trading is concerned, according to the relevant trading rules of the Exchange, Bank of Beijing will not provide physical delivery and delivery management services for silver temporarily.
Why do banks restrict precious metals business one after another?
Pan Helin, executive director of the Institute of Digital Economy of China University of Economics and Law, said that major banks may shrink their precious metals business because they believe that the bull market for precious metals is coming to an end, which involves the judgment of the US dollar policy. Many financial institutions judge that the Fed will turn to austerity in the future.
There is a certain correlation between the price of precious metals and the macroeconomic cycle, such as the appreciation of RMB and US dollar, which has an impact on the future expectation of precious metals. In addition, from the perspective of international macro-economy, RMB will continue to appreciate, which will also lead to increased risks of foreign exchange and precious metals investment products.
Specifically or for the following reasons:
Reason one: the fluctuation is too big. In order to avoid risks, commercial banks adjust their precious metal business. We believe that on the one hand, it is related to the recent frequent price fluctuations in the precious metals market. Recently, the precious metal price market has continued to fluctuate. After rising in April and May of 202 1, the price of gold suddenly fell to $90 in mid-June. Because the price of precious metal agency business continues to be unstable, the risk remains at a high level, so the bank's business adjustment is also to avoid risks.
The second reason: the bank's restrictions on investment in precious metals, foreign exchange and other derivatives may be related to the previous "crude oil treasure" incident. The essence of crude oil treasure is a trading product linked to domestic and foreign crude oil futures contracts launched by China Bank to individual investors, and China Bank provides customers with quotation information as a market maker. According to different quotation targets, crude oil products are divided into American crude oil products and British crude oil products. Individual investors open margin accounts for corresponding products in China Bank, and choose long and short positions for two-way trading on the deposits received.