Since the beginning of this year, spot gold prices have continued to hit new highs, driving up the popularity of wealth management products linked to gold. Several bank wealth management subsidiaries, including CMB Wealth Management, have recently launched wealth management products linked to gold. According to data from China Wealth Management Network, as of September 29th, there were about 50 existing wealth management products in the market with names containing "gold". From the perspective of the types of products that exist in bank wealth management subsidiaries, currently gold wealth management products are mostly "fixed income+" products with a risk level of level 2, and their investment strategies are relatively stable. This type of product generally uses fixed income assets such as bonds as the bottom position, and then invests in a certain proportion of gold related assets. According to Liu Sijia, a researcher at Puyi Standard, there are generally two ways to invest in gold: one is through structured products linked to gold assets through options, and the other is through non structured products such as gold ETFs. In addition, several foreign banks have also issued products with the name "gold", mostly fully open overseas wealth management products for clients with risk levels of four and five, covering multiple investment currencies and targeting differentiated needs. According to Puyi Standard statistics, based on the earnings data of existing products as of September 22, the annualized returns of the "Gold Fixed Income+" products issued by the vast majority of wealth management companies in the past month are in the range of 2% to 4%, with an average earnings performance relatively better than the overall earnings level of other fixed income products. Against the backdrop of recent fluctuations and adjustments in the bond market, the earnings have strengthened. Meanwhile, since July, the market has seen multiple structured products linked to gold with target profits or automatic triggers taking profits ahead of schedule, providing investors with a good experience. What are the considerations behind the intensive issuance of gold linked products and accelerated layout of gold based wealth management by bank wealth management subsidiaries at present? Shao Ke, the head of the Banking and Comprehensive Management Team at the China Banking Research Institute, stated that the layout of gold wealth management by bank wealth management subsidiaries is mainly aimed at increasing the attractiveness of product returns and meeting the needs of target customer groups. On the one hand, against the backdrop of rising global geopolitical risks and interest rate cuts by central banks in developed economies, gold prices continue to rise, with international gold prices hitting historic highs, driving up the yield levels of linked gold wealth management products and enhancing their attractiveness to investors. On the other hand, the yield level of traditional bank wealth management products, which are mainly based on fixed income, has declined. Bank wealth management subsidiaries urgently need to expand investment channels and find stable investment targets with higher returns and relatively lower risks for a large number of low-risk preference target customers. Since September, international gold prices have shown strong momentum, breaking through important integer thresholds one after another, and domestic gold prices have also risen accordingly. Shao Ke stated that, relatively speaking, gold, as a traditional "safe haven" asset, continues to increase holdings by global central banks and has medium to long-term asset allocation value. Reasonable allocation can to some extent meet investors' demand for stable returns. Although gold can provide a safe haven, it is still necessary to be cautious of the risks associated with gold based financial investments. Recently, the State Administration for Financial Regulation and other departments jointly launched the Financial Education and Promotion Week activity. Several financial institutions, including Yiwu Rural Commercial Bank under the jurisdiction of Zhejiang Rural Commercial United Bank, actively carried out consumer rights protection activities through short videos, delivering knowledge on preventing investment traps and fraud prevention to millions of households. Xue Hongyan, a special researcher at Su Shang Bank, stated that investors should be cautious of fraud and illegal fundraising risks when purchasing gold based wealth management products. Some unscrupulous individuals may use the popularity of gold investment to fabricate names such as gold custody and interest bearing wealth management, using guaranteed high interest as bait to absorb funds. In fact, it may be a scam of "borrowing new to repay old". Once involved, participants will face huge losses. Looking ahead, bank wealth management companies should strengthen their investment research capabilities and optimize the structure of gold based wealth management products. Liu Sijia stated that by increasing the allocation of gold assets, the portfolio can be optimized, and the diversification of asset allocation can be improved through cross market investment. At the same time, by grasping the upward dividend of gold prices, the profitability of the asset portfolio can be enhanced. For investors, Xue Hongyan stated that when investing in gold wealth management products, the first step is to recognize one's own risk tolerance, rationally evaluate risk preferences, and conservative or cautious investors may be more suitable for low-risk products. Stable and above investors should also control their precious metal investment amount within 10% to 15% of their household investable assets. Secondly, it is necessary to choose formal investment channels, carefully understand product details, and have a clear understanding of underlying assets, investment strategies, and return structures. In addition, it is necessary to establish a rational investment concept and recognize that gold is more suitable as a part of asset allocation rather than a speculative tool. Products should be selected based on the term of use of funds, and short-term funds are not suitable for participating in high-risk products such as leveraged deferred contracts. (New Society)