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Can buying ICBC RMB paper and silver avoid the exchange rate risk of RMB against the US dollar?
You can't. ICBC's paper silver is quoted according to the international spot silver price linkage, while the international spot silver is quoted in US dollars. For example, suppose you bought paper silver in 2.9 yuan at the end of last year, the international spot silver price was 14 USD, and the exchange rate of RMB against USD was 6.2. If the spot silver price does not fluctuate in the market (maintain 14 USD) and the RMB depreciates to 6.6 USD, the price of ICBC paper silver will rise accordingly. However, as a commodity, the price of silver is determined by the national market, so the fluctuation of paper and silver prices will be affected by more factors. It can be said that buying paper, silver, paper and gold can avoid the risk of RMB exchange rate depreciation. Once the RMB appreciates, it will have a negative impact on paper and silver investment.