Can the hot gold jewellery business of banks subvert the traditional market structure?

Mondo Fashionable Updated on 2024-03-07

In recent years, with the continuation of the first class, banks that traditionally only sell investment gold bars, gold medals, gold coins and other products have begun to set foot in the **jewelry market and launched gold bracelets, gold beans, gold melon seeds, gold ingots and other ** jewelry. This shift has not only aroused widespread attention in the market, but also brought a lot of discussions about whether ** jewelry is suitable as a safe-haven asset.

Why did banks enter the ** jewellery market? The reason behind it is not only profitability, but also related to its credibility and extensive network coverage. Banks enjoy a high degree of credibility in the minds of consumers and have a legal license to sell, which makes it easier for their products to gain the trust of consumers. In addition, by integrating the best jewelry sales and financial services, banks can improve their ability to attract customers and achieve complementary services and products.

However, despite the many advantages that banks have in the ** jewelry market, it is not easy to really stir up this market. At present, banks mainly sell *** jewelry in the form of consignment, which means that they cannot buy back these products. If consumers want to resell the **jewelry sold by the bank, they can only go to other gold stores**. In addition, although banks do not need to pay additional processing fees, taking into account the most important factors, the selling price of their ** jewelry is often similar to that of gold stores, and sometimes even higher than gold stores.

So, is jewelry suitable as a safe-haven asset? Experts are not in agreement on this. Some experts believe that the design, engraving and other processes of ** jewelry increase its unique ornamental value, making it have a higher premium than investing in gold bars. Therefore, if the safe-haven attribute of ** is the main consideration, it may be more appropriate to invest in gold bars. While others believe that the gap between jewelry and gold bars is narrowing with the growth of the company, jewelry can also be considered as one of the reasonable options for safe-haven assets.

However, regardless of whether the best jewelry is suitable as a safe-haven asset, banks are facing certain opportunities and challenges when they get involved in this market. On the one hand, by expanding the jewelry business, banks can increase revenue and enhance customer stickiness; On the other hand, banks also need to face problems such as market competition, volatility and jewelry repurchase. How to find a balance between these challenges will be the key to the bank's success in the ** jewellery market. March Creation Incentive Program

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