Multiple banking giants have sent warning letters to alert about the risks of trading precious metals.

With gold prices hitting new historical highs recently, large commercial banks have started carefully "warning of risks". Zisha Hall noticed that in recent days, many state-owned banks and joint-stock banks have issued risk warning announcements to investors or adjusted the threshold for gold investment. These announcements all coincidentally warned of risks in the recent precious metal business market. Almost simultaneously, as the recent gold market continues to rise, the purchasing sentiment for physical gold and gold jewelry has soared. There have even been instances where some bank apps show gold bar investments being out of stock. The Shanghai Gold Exchange recently announced that there are many uncertainties affecting the market operation recently, with precious metal prices continuing to fluctuate significantly, leading to increased market risks. They have advised all member units to remind investors to take necessary measures to prevent risks, among other things. Industrial and Commercial Bank of China emphasizes the "significant increase in risks" On February 12, Industrial and Commercial Bank of China released an announcement on its official website stating that recent fluctuations in precious metal prices have increased significantly, and market risks have risen significantly. They advise individuals to increase risk prevention awareness, pay close attention to the precious metal market and price trends, and closely monitor changes in the margin account funds for bidding transactions on the Shanghai Gold Exchange. This announcement further advises investors to "properly control positions, pay attention to margin balances, and guard against market risks." CCB warns of risks in "personal gold accumulation" On February 12, CCBs announcement pointed out that recent fluctuations in domestic and foreign precious metal prices have intensified, increasing market risks. They urge individuals to raise awareness of risk prevention in personal gold accumulation and other precious metal trading businesses, properly control positions, timely monitor holdings and changes in margin balances, and invest rationally. CCB specifically emphasized the trading risks of "personal gold accumulation". It is reported that "personal gold accumulation" refers to individuals investing in gold through banks in a systematic (incremental purchase) manner, rather than a one-time purchase of physical gold. Investors can purchase gold regularly or irregularly in grams or amounts through an account, gradually accumulating holdings. It is also understood that most gold accumulation businesses exist in the form of account gold, where investors do not directly hold physical gold but can choose to withdraw physical gold. Bank of China raises the minimum purchase amount On February 7, 2025, Bank Of China announced on its official website "Announcement on Adjusting the Purchase Starting Point of Gold Savings Products According to Amount". The announcement states that based on the current market conditions, the bank will adjust the purchase conditions for gold saving products starting on February 10, 2025, with the minimum purchase amount for purchasing gold saving products or creating a gold savings investment plan being adjusted from 650 yuan to 700 yuan, while the additional purchase amount remains at multiples of 200 yuan. On February 11, Bank of China issued another announcement: adjusting the margin ratio and price fluctuation limits for gold deferred contracts under personal agency business at the Shanghai Gold Exchange. Specific details include: starting from the end of clearing on February 12, 2025 (Wednesday), the margin ratio for gold deferred contracts at the Shanghai Gold Exchange will be adjusted from 10% to 11%, and the margin multiplier for Bank of China's gold deferred contracts will be adjusted from 395% to 360%. CITIC BANK warns of risks a few days ago On February 8, CITIC BANK issued a statement stating that during the Spring Festival, there were significant fluctuations in the overseas precious metal market, with gold prices rising significantly. The geopolitical and economic risks have intensified internationally, increasing the possibility of significant gold price fluctuations. This announcement advises investors to take preventive measures, reasonably allocate gold assets from an asset allocation perspective, and make rational purchases of gold accumulations and physical gold products. China Merchants Bank adjusts gold account interest rates On February 8, China Merchants Bank announced the adjustment of interest rates related to gold account business on February 12, including a decrease in the annualized interest rate for gold account current accounts, three-month, six-month, and nine-month term products compared to before. China Merchants Bank also disclosed to investors: effective February 17, China Merchants Bank will increase the buy-sell spread for gold accounts. The so-called buy-sell spread refers to the difference between the buying and selling prices of gold, which means that the cost of purchasing gold will increase, usually as a response to increased market volatility. This article is a reprint from "Wall Street View", edited by GMTEight: Chen Xiaoyi.