Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, China Merchants Bank, China Minsheng Bank, issue risk warnings

In recent times, multiple banks, including Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, China Merchants Bank, and others, have released risk warning announcements for the precious metals market. The announcements state that current precious metals prices are experiencing violent fluctuations, market uncertainty has increased significantly, customers are advised to enhance their risk awareness, make rational investments based on their own financial situation and risk tolerance, and reasonably control their position size.

On March 20, Industrial and Commercial Bank of China issued “A Reminder on Doing a Good Job in Risk Prevention and Control in the Precious Metals Market”:

Affected by the complex evolution of global macroeconomic and geopolitical conditions, volatility in domestic and overseas precious metals markets has intensified. To help ensure the safety of your assets and steady investment performance, our bank hereby makes this reminder:

Please, above all, maintain a calm and rational investment mindset, fully assess your own risk tolerance, and avoid blindly chasing up or selling in a panic driven by short-term market sentiment. From the perspective of long-term asset allocation, we recommend that you adhere to the principles of “total quantity control, entering in batches, and diversified allocation.” By extending the investment horizon to smooth out the risk of price fluctuations across different stages, you can build a more stable and robust asset portfolio.

On March 23, China Construction Bank released “Announcement on Risk Warnings for the Precious Metals Business Market in Recent Times”:

In recent times, volatility in domestic and overseas precious metals prices has further intensified, and market risks have increased significantly. When investing in our bank’s precious metals business, please increase your awareness of risk prevention for precious metals business, and make rational and steady investments based on your own financial situation and risk tolerance. Allocate precious metals in a balanced and appropriate manner, reasonably control your position size, and avoid blindly following the crowd or engaging in follow-on transactions. At the same time, please promptly monitor your holdings and changes in your margin balance to guard against risks in the precious metals market.

Agricultural Bank of China issued an announcement stating that, in recent times, volatility in domestic and overseas precious metals prices has been severe, and uncertainty factors have increased significantly, with market risk rising. It specifically reminds customers to thoroughly and prudently assess their own risk tolerance, comprehensively consider their own financial situation, and carry out precious metals trading business in a steady manner while maintaining a rational investment mindset. Customers are asked to closely monitor market changes, reasonably control the scale of their holdings, and effectively prevent risks arising from market volatility.

Bank of China issued an announcement stating that, recently, global geopolitical risks have intensified, and under the influence of multiple factors, volatility in precious metals prices at home and abroad has increased further. To protect the interests of customers related to precious metals businesses such as stored gold, profit-earning gold, and precious metals in accounts, our bank specifically reminds customers to do a good job in preventing market risks, make rational investments based on their own financial situation and risk tolerance, and reasonably control their precious metals positions. It also helps mitigate the impact of period-by-period price fluctuations by using long-term investment, and guards against the risk of funding losses caused by market volatility.

China Merchants Bank issued “Notice of Risk Warnings for the Precious Metals Business Market in Recent Times”:

In recent times, there are many factors of uncertainty in the precious metals market, and price volatility has intensified. Please enhance your awareness of risk prevention for the precious metals business. Based on your own financial situation, risk tolerance, and investment experience, conduct precious metals investment activities rationally, reasonably control the scale of your holdings of precious metals assets, and avoid short-term speculation or trend-following trades. From the perspective of long-term asset allocation, rationally allocate precious metals assets, control the total amount of investment, and do a good job with diversified placement.

Minsheng Bank’s announcement states that, in recent times, there have been many factors affecting market instability, precious metals prices have fluctuated sharply, and it is recommended that investors in general pay attention to market risks and improve their risk prevention awareness. Based on your financial situation and risk tolerance, reasonably control your position size and invest rationally.

On March 23, international gold prices fell sharply and subsequently lost several key levels one after another. Among them, London gold once fell below the $4,100 per ounce level, with a decline of more than 8.7%. As of the time of this release, spot gold is up slightly today, at $4,561.940 per ounce.

According to CCTV Finance, Tian Lihui, a professor of finance at Nankai University, said that the current volatility in the precious metals market has exceeded the scope of normal pullbacks and has entered an atypical stage characterized by high intensity and high uncertainty. Ordinary investors are more suitable for long-term allocation through unleveraged methods such as stored gold and gold ETFs.

Edited by | Zhang Jinhe Du Bo

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