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How to make money by gold passbook in 2021? The pros and cons of gold passbooks and detailed explanation of investment methods

2022-03-23

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　　Gold,a traditional safe-haven tool,is always favored by investors whether it is an economic downturn,an outbreak of an epidemic,or an increase in political risk.Among the many channels for gold investment,Gold Passbook is one of the most suitable investment channels for petty bourgeoisie.What exactly is a gold passbook?How to play with gold passbook?This article on the mutual market will share the advantages and disadvantages of gold passbooks and investment methods.How to make money through gold passbooks?

　　1.What is a gold passbook?

　　Gold Passbook(English:GoldPassbook)is a financial service that banking institutions provide to the public to invest in gold in the form of passbook accounts.Customers can choose single purchases,limit purchases,gold full or regular fixed amount of gold to buy and sell.

　　When a certain amount is accumulated in the passbook,you can also claim the gold in the passbook!For investors who want to hold physical gold such as gold bars,gold nuggets,etc.,gold passbooks are definitely one of the investment channels that must be known.

　　And gold itself is one of the ancient currencies,so you can think of gold passbooks as one of the types of passbook accounts.Strictly speaking,the reciprocal market thinks that it is more like a foreign currency account,except that gold passbooks do not generate interest income.The"passbook"in the gold passbook is very similar to the general bank passbook,but it is not the cash that is recorded here,but the purchase amount of gold.

　　Simply put,a gold passbook is a custodial account that uses gold as a reserve.

　　The gold passbook is calculated as the balance in the following table,the unit is weight:

　　Because gold cannot be like cash,cash can be used by banks to borrow money to collect interest,and then return the interest received to you,but gold passbooks cannot,so the bank can only help to keep it,and will not pay you interest.

　　Gold passbooks can be used to withdraw physical gold,but a handling fee will be charged.It should be noted that the gold that has been withdrawn cannot be deposited into the gold passbook.

　　The minimum buying and selling unit for gold passbooks denominated in Taiwan dollars or RMB is 1 gram,and the minimum buying and selling unit for gold passbooks denominated in US dollars is 1 ounce(31.1 grams).

　　2.Gold passbook quotation inquiry

　　It can be seen in the gold passbook quotation query of the Bank of Taiwan.

　　3.Advantages and disadvantages of gold passbooks

　　Any investment tool has its advantages and disadvantages,here are the advantages and disadvantages of gold passbooks.

　　Advantages of Gold Passbook

　　1.The threshold for opening an account is low,and the minimum transaction weight is 1 gram,which is suitable for petty bourgeoisie with little money.

　　2.There is no transaction tax and storage costs.

　　3.In terms of preservation,because the bank takes care of it,investors do not need to worry about the risk of gold being stolen at home.

　　4.The transaction is very convenient,both online and offline can be traded.

　　5.It is convenient to transfer funds.If you want to sell it to other people or give it to children,as long as the other party also has a gold passbook,you can use the transfer method to complete it.

　　6.Realization is easier than physical gold.

　　Disadvantages of Gold Passbooks

　　1.The bank will not pay interest,and there is no effect of compound interest.

　　2.There is a big difference between the buying price and the selling price,so it is not suitable for short-term investment,but more suitable for long-term investors.

　　3.The gold passbook can be used to withdraw physical gold,but after the withdrawal,the gold passbook cannot be deposited,and the withdrawal needs to bear the transportation fee of thousands of Taiwan dollars.

　　4.Gold passbooks can only be"long",and can only be"buy low and sell high"to earn the price difference,and cannot be"shorted",and the investment method is limited.

　　4.What are the risks of gold passbooks?

　　Before investing in each investment vehicle,it is important to understand its risks.The risk of the gold passbook is that the gold in the gold passbook is not cash,so it is not protected by deposit insurance.

　　In addition,the gold passbook has no interest,and the value of gold will fluctuate with the international situation.The biggest loss is the loss of the principal,so the principal cannot be preserved.In the international market,gold is mainly traded in US dollars,so buying in Taiwan dollars will also have the risk of foreign exchange differences and the cost of foreign exchange.

　　【Please pay attention to the trading risks】

　　Gold passbooks do not bear interest.Due to fluctuations in international gold prices and exchange rates,there may be gains or losses.The maximum possible loss is the entire purchase amount.Please prudently research the timing of trading and take risks.

　　If the gold passbook is related to donation,inheritance and tax payable,the customer or heir should declare and bear the responsibility.

　　The gold passbook is kept by the bank for the customer's gold balance.It is not a deposit,and it is not the subject of the deposit insurance regulations,and is not protected by deposit insurance.

　　5.How to play the gold passbook?

　　Gold passbooks can be used as a safe-haven and anti-inflation asset.The reciprocal market suggests that the gold position can be added to the asset allocation,and the proportion should not be too high(below 5%).

　　On the other hand,gold is also a good tool for earning price differences when risk events occur,and it is more suitable to use futures and foreign exchange in this part.

　　Most people may want to invest in gold passbooks by"buying low and selling high"to earn the price difference,but this is not recommended,because the original design of gold passbooks is a custodial business,which is to provide long-term investors for long-term savings..

　　Judging from the gold passbook price of the Bank of Taiwan in the picture above,the price difference between the buying and selling price is 1.24%(which can be regarded as the investment cost).

　　Therefore,it is recommended that investors invest in gold passbooks for the purpose of long-term savings,asset allocation,and risk diversification.

　　6.How to use gold passbook investment to make money?

　　Mutual Market recommends three classic gold investment strategies for you.Follow these and you can also invest in gold passbooks to make money!

　　buy low sell high

　　The easiest way to make a profit is to buy low and sell high.Everyone knows this,but how?

　　First of all,you need to know that gold's rally is often a market where funds or hot money need to be safe,and then they are bought in large quantities.

　　For example:the Sino-US trade war that occurred in 2019-20,the new crown pneumonia,the 2020 US election...etc.

　　These fundamental news are easy to stimulate the gold market,which will lead to a wave of medium-term or even long-term profit opportunities.

　　Therefore,the first gold trading strategy is:"When political,economic and other events occur,especially major events affecting the world,you can boldly buy and hold for a period of time until you are close to the target price or stop profit point and sell."

　　However,as mentioned in the mutual exchange market,the original design of the gold passbook is a custodial business,which is to provide long-term investors with long-term savings.It is still recommended that investors invest in gold passbooks for the purpose of long-term savings,asset allocation,and risk diversification.

　　Buy in batches at relative lows

　　Buying in batches is the practice of most investors,but it is not that they will make money by buying them in batches at any point,but to find a relatively low point and then invest in batches.

　　First of all,you must first determine the cycle of your investment.For example,if you are a conservative long-term investor,you may look at the technical chart of more than 5 years.

　　Next,in this cycle,you can find the relative low point through technical indicators.You can use the moving average,MACD,etc.to initially screen for you.After considering your own capital position,you can buy funds in batches.

　　Of course,if the gold price in the market is already at a high point,or even close to a new record high,I personally suggest not to chase the high,and wait until the market heat subsides before looking for an opportunity to enter the market,otherwise the cost of your purchase will be too high.

　　Therefore,the second gold trading strategy is to"find out the relative low point in the cycle through the technical chart,and allocate the capital ratio to buy in batches near a reasonable relative low point."

　　Regular indefinite purchase

　　Regular fixed purchase is a common strategy for fund investment or ETF investment.It is most popular with fixed amount and fixed time deduction.The entry points are scattered at different prices over time,thereby reducing investment risks.

　　However,what is criticized is also fixed,because you can't control the market,and sometimes constant regular and fixed purchases at relatively high points will cause the investment cost to be high,and the profit that investors want to make will be compressed.

　　Therefore,individuals do not recommend regular fixed quotas,but recommend that you regularly irregular quotas.

　　Then,the third gold trading strategy is"regularly but not fixed amount,reduce the investment amount at a relatively high point;increase the investment amount at a relatively low point,and develop investment habits,the gold price will also feel more when the price rises.”

　　Seven,gold passbook bank comparison

　　What to prepare for opening a gold passbook account

　　national identity card

　　For-profit enterprise registration certificate or certificate of approval to establish

　　Second identity document(health insurance card,driver's license)

　　personal seal

　　Account opening fee(0~100 yuan,according to the regulations of each bank)

　　Account opening object

　　All natural persons,legal persons and organizations can apply,except for OBU customers who are not allowed to apply for a gold passbook denominated in Taiwan dollars.

　　(OBU,English:Offshore Banking Unit,Chinese name is"overseas financial center"or"international financial business branch",is the government to take tax relief or preferential measures,and reduce foreign exchange control,in order to attract foreign legal persons or individuals to domestic banks to conduct business A financial unit of financial operations.)

　　Account opening method

　　Bank counter:Bring relevant documents and documents to the bank counter to open an account

　　Internet Banking:Upload clear and identifiable relevant documents and documents to open an account in the bank's Internet Banking

　　Gold Passbook Account Bank Recommendation(Take Yushan Bank as an example)

　　At present,the most people in Taiwan open an account is the Bank of Taiwan,which is the main exchange bank in Taiwan and the first bank with a gold passbook service.However,in addition to the Bank of Taiwan,the gold passbook service that the mutual market thinks is good is Yushan Bank.,recommended for your reference.

　　At present,Yushan Bank has launched an account opening discount.As long as you meet the qualifications,the account opening is not only free,but you will also receive a 50%discount on the transaction fee for the investment on the day of account opening,which will save a lot of transaction costs for investors.

　　The contents of the offer are as follows(source:Yushan Bank official website)

　　For new account with over-the-counter gold passbook,after opening an account and buying a unit of 1 gram or 0.1 ounce(inclusive)or more,you can get the following discounts:

　　The account opening fee is 0 yuan discount.

　　On the day of account opening,if you make a regular investment agreement at the counter,you can enjoy a 50%discount on the deduction fee.

　　On the day of account opening,if you buy at the counter at the agreed price,you can enjoy a 50%discount on the deduction fee.

　　If you want to say which bank is the best and most worthy of your gold passbook,there are several key points you must know:

　　1.Account opening cost:Although the account opening fee of each bank is very small,about 50~100 yuan,but like Yushan,as long as you meet the qualifications,you can open an account for free,and there is a discount on the handling fee on the day of account opening,which will save you from the beginning.a sum.

　　2.Foreign exchange cost:The buying and selling prices of different companies are different.Although the difference may be only a few percentage points,if you are buying and selling a large amount of money,you must consider which banks are better for foreign exchange.

　　3.Consideration of accounts in Taiwan and foreign currencies:Some banks will offer foreign exchange,account transfer discounts from time to time,etc.You can pay attention to these bank information and save a lot of money.

　　4.Bank branches are close to home:When you have to deal with some urgent business,of course,a bank close to your home will be more convenient for you.

　　5.Whether the online banking service is suitable for you:Each online banking service is different,and everyone's usage preferences are also different.After all,it is the online banking service that you will use frequently in the future,and the habit of getting started and using it becomes very important.

　　Other factors include:good bank customer service,fast operation process and so on.

　　Some people will think that since the gold passbook has no interest and there is a foreign exchange difference,then I might as well open a foreign currency account to buy foreign currency investments to make money.Even if there is a foreign exchange difference,I can still earn interest income.

　　That's right!Compared with foreign currency accounts,there is also the problem of foreign exchange gains and losses,but foreign currency accounts have interest income,but gold passbooks do not.

　　The investment target of the foreign currency account is foreign currency,and the exchange rate between countries needs to develop and evolve steadily,and it is unlikely that simple exchange will give you the opportunity to get a lot of profit.

　　If you want a small amount of capital to participate in the gold market,then a gold passbook is for you.

　　In addition to the low investment threshold,the gold passbook does not require a lot of principal to prepare,and the risks borne are also much lower than other channels.

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The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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How to make money by gold passbook in 2021? The pros and cons of gold passbooks and detailed explanation of investment methods

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