What is the difference between bank paper gold and physical gold

The difference between paper and physical is that paper is a personal certificate, which is a new investment product after *****. Investors buy and sell "virtual" on the bank's books. There is real gold in the hand, and there is a value preservation function.

Paper **** refers to the international gold price, the tracking target is the international gold price, and the paper ** is also affected by supply and demand. The pricing principle of the paper ** is the international gold price * the middle price of the exchange rate plus the bid-ask spread.

Paper**. Also known as account** and certificate**, investors buy and sell virtual ** on the book according to the bank**, and individuals earn fluctuating spreads by grasping the ****** buy low and sell high. Physical** refers to general investment gold bars in the market.

and gold coins, etc., investors buy physical products that can be seen and touched.

Extended information: The difference between paper and physical is whether the physical object can be withdrawn, and the paper transaction record is only reflected in the personal pre-opened account, and no physical gold withdrawal and delivery occur. The physical goods** need to be withdrawn and kept by themselves after the investment is purchased.

Paper trading is not to do spot.

Settled book transactions, hence also known as "bookkeeping transactions". Like investing in physical goods, "paper" is a way to invest, so it has both long-term value preservation and price difference income.

Paper ** trading profit model.

That is, by buying low and selling high, you can get a profit from the spread. Compared with physical gold, its transaction is more convenient and fast, and the transaction cost is relatively low, which is suitable for professional investors to carry out the most important operation.

The issuance of paper is generally issued by commercial banks, companies or large retailers with strong financial strength and good credit in the market, such as fixed deposit certificates issued by commercial banks.

Bills of Exchange and Account Passbooks, Shanghai Exchange.

**bill of lading or **warehousing documents** issued, **bonds issued by enterprises, etc.

Because in the paper transaction, the subject matter of the liquidation and settlement between the buyer and the seller after the transaction is a certificate of ownership, not a physical object.

The ** on the customer's ** account can only be used for ** sell transactions, and cannot be used for ** physical withdrawal or deposit.

In the process of paper trading transactions, due to the secondary clearing and delivery of physical gold withdrawal and delivery between banks and individual investors, the formalities such as fineness signing and weight detection in the transaction are exempted, and the operation process of physical delivery is simplified, thereby speeding up the circulation of the transaction. At the same time, the deposit in the customer's passbook account can be used as a sell transaction, or as collateral or margin.

The introduction of applying for ** loans from banks, so paper ** trading, will bring great convenience to individual investors participating in the transaction.

The indication of paper trading is divided into price and selling price, and the difference between the price and the ask price is the spread of paper trading.

First, the transaction object is different

Individual investors participate in exchanges through the bank's **.

The object of the transaction is the ** physical object standardized by the exchange;

Paper**. The trading object is the representative ****.

The virtual number of the purchases is quoted by the bank.

Second, the counterparty is different

The counterparties to which investors buy and sell physical goods on the exchange are other investors who participate in the physical transactions of the exchange**;

In the case of paper**, the counterparty of all investors is the bank.

Third, the trading mechanism is different

The physical ** trading of the exchange adopts the on-site auction matching model, which is exactly the same as the ** trading model. Investors can participate independently, according to the principle of priority and time priority, the transaction system is open to buying and selling in real time and the transaction price, and buyers and sellers trade directly;

In the trading of paper **, investors can only point the price according to the bank.

Transaction, can not participate in **, **price and.

There is a large spread between the selling prices.

Fourth, the physical extraction is different

After the exchange is traded through the exchange, the investor account is corresponding to the physical object stored in the vault, and the investor can sell it to earn the difference when it is higher, and can also withdraw the physical object from the vault, which is a suitable product for investment and value preservation;

The paper transaction is the **sale** quoted by the bank, which is a kind of **transaction on the books, and cannot be withdrawn in kind, so the bank also calls it "account gold".

Fifth, the transaction cost is different

The cost of the physical ** transaction of the exchange is the transaction fee, and the handling fee of the exchange plus the handling fee of the ** merchant is generally not higher than 8/10,000 of the transaction amount;

The transaction cost of paper ** is not directly manifested as the transaction fee, but as the bid-ask spread at the same point in time, the bank obtains the expected annualized expected return from the bid-ask spread, and the bid-ask spread is much higher than the exchange fee rate if converted into the transaction fee rate.