Risk of price fluctuation: The price of gold bars is influenced by many factors, such as market supply and demand, international gold price, political and economic environment and so on. This is very unstable. This means that investors need to bear greater price risks.
High storage and insurance costs: Gold bars need professional storage facilities and safety measures to ensure their quality and value. This means that holding gold bars requires additional storage fees and insurance premiums, which may be a high long-term cost.
Poor liquidity: Compared with other financial assets, such as gold ETF and gold securities, the liquidity of gold bars is poor. In addition to selling gold bars directly, it is difficult to make a profit, and it is also difficult to get loans secured by mortgages.
Security risk: Gold bars are easy to be stolen and stolen because of their high value. In the event of theft, the risk of losing gold bars will be very high, and it is often difficult to get compensation.
To sum up, banks do not recommend buying gold bars as investment products.