Competing to Enhance the "Gold" Brand Name: Multiple Banks' Annual Sales of Precious Metals Double

Securities Times Reporter Huang Yulin

On May 13, the international spot gold market continued to fluctuate, with intense battles around the $4,700 per ounce level during trading.

Regarding recent gold price performance, ICBC announced that starting May 19, the risk level of its Ruyi Gold Savings products will be lowered to R2 - Medium-Low Risk. This also means that the bank’s gold savings business once again opens its doors to investors rated C2 - Conservative.

In fact, as the “Gold Rush” continues to heat up, commercial banks have taken advantage of residents’ gold purchasing demand, with gold savings and other precious metal businesses gaining attention, and related business rules constantly being adjusted. Several banks mentioned in their annual reports and earnings meetings that sales of physical precious metals are expected to multiply by 2025.

Amid this wave, banks are continuously expanding channels, offering rate discounts, and sharpening their “gold” branding.

Frequent Adjustments to Trading Rules

According to ICBC’s announcement, due to recent market instability factors, to further protect individual investors’ rights, starting May 19, 2026, the risk level of ICBC’s Ruyi Gold Savings products will be lowered to R2 - Medium-Low Risk, and the corresponding customer risk tolerance level will be lowered to C2 - Conservative and above.

This is ICBC’s second adjustment to the gold savings business rules in four months. Since mid-January, customers handling gold savings must meet a C3 - Balanced or higher risk level.

Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of Shanghai Financial and Development Laboratory, pointed out that at the end of January, international gold prices surged to a historic high before experiencing a sharp correction. To fulfill investor suitability obligations and prevent investors from purchasing products beyond their risk capacity, banks generally increased risk ratings and investment thresholds at that time.

“Now, although gold prices are still fluctuating around $4,700 per ounce, volatility has decreased compared to before, and gold savings business has returned to normal. Banks are dynamically adjusting risk ratings accordingly,” Dong Ximiao said.

Severe fluctuations in international gold prices often occur during overseas trading hours, while domestic gold savings markets are mostly closed at that time. Therefore, in addition to dynamically adjusting risk ratings, many commercial banks have proactively extended trading hours for gold savings to protect investors’ rights.

On May 8, Industrial Bank launched a “night trading” session, extending trading hours from 9 a.m. to 2 a.m. the next day. According to Securities Times, China Construction Bank, China Merchants Bank, Minsheng Bank, Jiangsu Bank, and others have previously launched night trading features, covering periods of active international gold price movements.

Multiple Banks See Doubling of Precious Metal Annual Sales

Behind the adjustment of business rules is the cautious yet proactive approach of banks facing a large “gold rush” customer base. Notably, information from the 2025 annual reports of listed banks and recent earnings presentations shows that gold savings and other precious metal businesses have become one of the most prominent growth engines.

Looking at specific institutions, leading banks’ ability to attract funds in this area is particularly strong. For example, Bank of China, according to its annual report, achieved a physical precious metal sales of 74.55B yuan in 2025, a significant increase of 113.62% year-on-year; Postal Savings Bank of China saw gold savings transaction amounts surge over 270% year-on-year in 2025, with gold savings transactions exceeding 12.3 billion yuan.

Joint-stock banks’ precious metal businesses are also booming. Jingfeng, Vice President of Zheshang Bank, stated at the earnings meeting that in 2025, Zheshang Bank’s total precious metal trading volume expanded eightfold compared to 2024, and market enthusiasm continued into the first quarter of 2026.

Dong Ximiao said that the explosive growth of bank precious metal businesses in 2025 results from a confluence of market dividends, customer demand, and bank transformation. In the short term, this is an effective way for banks to obtain stable intermediary income under interest margin pressures; in the long term, it is an important layout for banks to shift from “scale-driven” to “value-driven” business models and achieve high-quality development.

“This not only reflects banks’ keen insight into market trends and customer needs but also promotes the evolution of banking business structures toward more diversification and asset-light models,” Dong Ximiao added.

Channels Strive to Capture Market Share

To compete fiercely in the “gold mining” market and enhance their “gold” branding, banks are actively expanding channels and offering rate discounts.

On one hand, banks are increasing investment in online channels, placing gold savings sections prominently in mobile banking apps to attract customers and boost trading activity. Meanwhile, some banks are partnering with internet platforms to open new growth avenues.

In early April, Industrial Bank announced a cooperation with JD Jin Yue (Xiamen) Digital Technology Co., Ltd. (“JD Jin Yue”) to develop gold savings business. JD Jin Yue is backed by JD Finance, and prior to Industrial Bank, ICBC, Minsheng Bank, and Zheshang Bank have also partnered with this platform to promote gold savings agency sales.

On the other hand, banks are seizing various marketing opportunities by launching discounts on gold savings fixed investments, offering free physical gold bars for exchanges, and other activities to lower participation barriers. Currently, ICBC, Bank of China, China CITIC Bank, and others have introduced limited-time discounts for gold savings purchases. For example, before June 30, ICBC reduced the handling fee for proactive gold savings from 0.5% to 0.2%.