The profit model of paper gold is to obtain the difference profit by buying low and selling high. Paper gold is a transactional product, and its operation and quotation are similar to those of Waihuibao. Although there are risks in the gold market, it is much more stable and easier to master than the ever-changing foreign exchange market.
Paper gold (account gold) of commercial banks is the business that investors buy and sell gold in a pre-opened gold account according to the quotation provided by commercial banks. In the actual trading process, investors' gold trading records are only reflected in the pre-opened gold trading accounts, that is, there is no process of extracting and delivering gold in paper gold trading.
In the process of paper gold trading, because there is no secondary settlement and delivery between banks and individual investors, there is no need to identify the fineness and weight of gold, which simplifies the operation process of physical delivery of gold and speeds up the circulation of gold trading.
The deposit in the gold passbook account can be used for selling transactions, and can also be used as collateral or deposit to apply for a gold loan from the bank. This kind of transaction can save necessary expenses such as storage fee, storage fee, insurance fee, appraisal fee, transportation fee, etc., reduce the extra cost in the gold price and reduce the investment transaction cost.