@Wingnut -- I don't think it's b.s. Not at all.
China's banks are now blocking clients from investing in physical gold products - InsiderA number of Chinese commercial banks have raised the risk classifications on their precious metal products – and for physical gold in particular – following the elevated volatility seen in the market
According to a report from Chinese media outlet Yicai Global, the precious metals investments now classified as ‘higher risk’ are mainly physical gold products. A banking sector insider told Yicai that banks are actively discouraging clients from gold investment: They have stopped opening new accounts for these products, and existing clients can only close their positions, and cannot add to them.
The report noted that Comex gold futures shot up by more than 28 percent early in November, then pulled back 6.5 percent, only to rebound soon afterward. By raising risk classifications, banks aim to protect less experienced or risk-averse retail investors from potential losses.
“Chinese lenders are also phasing out investment products that track commodity futures markets, while enhancing risk control measures, and tightening investor access,” the insider said. “These measures include prohibiting new account openings, limiting trading to existing customers, raising risk classifications, and setting higher minimum investment amounts.”
They added that some banks are also having investors redo personal risk tolerance assessments.
“China Construction Bank, for example, no longer allows customers whose personal risk tolerance rating is conservative and cautious to invest in certain physical gold products after it raised the risk classification,” the report noted. “Moreover, banks may wind down trading-type investment products for precious metals, keeping only those with relatively low-risk classifications, such as physical investments, the insider added.”..............
https://www.kitco.com/news/article/2024-11-28/chinas-banks-are-now-blocking-clients-investing-physical-gold-products
