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  Home Page > Corporate Banking >Financial market >Products & Services >Investment products >Precious metal (account)
Precious Metal (Account)
 

I. Business Description
"Precious Metals (Account)" is a fund dealing service launched by ICBC. Customers use the ICBC precious metals dealing system for personal account to buy or sell Precious Metals (ounce) against US dollar or Precious Metals (gram) against RMB over the counter or via electronic banking within the trading hours. Precious metals traded through account are gold, silver, platinum and palladium. There is no physical delivery. The trading of gold via account is "paper gold" transaction, the trading of silver via account is "paper silver" transaction, the trading of platinum via account is “paper platinum” transaction, and the trading of palladium via account is "paper palladium" transaction.
Customers can initiate buy/sell instructions at ICBC outlet or via online banking, mobile banking (WAP) and telephone banking to trade precious metals for spot delivery or place orders, manage the accounts or make inquiries.

II. Category
In terms of dealing currency, ICBC service for buying/selling precious metals via account includes precious metals in RMB account and precious metals in USD account. The unit of trading is "gram" for precious metals in RMB account and the unit of trading is "ounce" for precious metals in USD account.
In terms of precious metals category, currently, ICBC service for buying/selling precious metals via account includes gold, silver, platinum and palladium.

III. Price
ICBC provides quotation after taking into consideration the movement of precious metals prices in international and domestic markets and updates the price in real time in line with the market changes.

IV. Features and Advantages
Low trading cost: no account opening fee, no dealing fee, no need for physical delivery, eliminating the cost of warehousing, transportation and assaying.
Long trading hours: daily trading from 7:00 am Monday to 4:00 am Saturday, via electronic banking.
Low initial minimum: the starting point for trading gold, silver, platinum or palladium via USD account is 0.01 ounce in minimum increments of 0.01 ounce; the starting point for trading gold, silver, platinum or palladium via RMB account is 1 gram in minimum increments of 0.1 gram.
Wide range of trading channels: enjoy face-to-face service at the ICBC outlet and experience buying/selling of precious metals via mobile banking (WAP), personal online banking and telephone banking anytime and anywhere.
Real-time clearing: The buying/selling of precious metals via account is cleared in real-time and the funds are credited instantaneously to your account. You can buy/sell several times in a day to maximize the use of your investment.
Flexible options: spot transactions or placing orders. There are three types of orders: profit-taking order, stop-loss order, two-way order and the longest period of order is 120 hours.

V. Target Customers
(1) Customers who have the need, are well-experienced in buying/selling precious metals, are able to bear the risk, hold certain knowledge about the precious metals market and wish to gain from price spread by trading on market trend.
(2) Customers who need to allocate assets, are well-experienced in the investment of precious metals, are able to bear the risk, hold precious metals over a long term for diversified allocation to preserve or add value to the assets.
VI. Conditions for Application
To be eligible, you must have ICBC current deposit passbook, ICBC Moneylink Card, Elite Club Account Card or ICBC Wealth Card. Customers using online banking, telephone banking or mobile banking must sign up for ICBC electronic banking first.

VII. Sign-up
A personal precious metals account must be opened first for buying/selling precious metals (including gold, silver) in RMB account. There is no need to open an account for buying/selling precious metals (including gold, silver) in USD account.
(1) Open account over the counter: present your own ID certificates and ICBC current deposit passbook, Peony Money Link Card or Elite Club Account Card, fill in and sign the Application Form.
(2) Open account via electronic banking: open the account by yourself via ICBC’s online banking, telephone banking or mobile banking.

VIII. Operation Guide
(1) Trading over the counter
Go to a designated ICBC outlet with your own ID certificates, ICBC current deposit passbook, Money Link Card and Elite Club Account Card.
(2) Trading via online banking

(3) Trading via telephone banking

(4) Trading via mobile banking (WAP)

IX. Tips
1. Check the trend chart and history K-line chart in real-time through ICBC personal online banking.
2. When placing a new order, you can choose SMS alert upon closing of the order and enter your mobile number. Once the order is closed, you will receive a SMS alert.
X. Matters Meriting Attention
1. Only one account for trading Precious Metals (Account) can be opened in one area.
2. You can check historical transaction and order details up to 6 months through ICBC online banking.
3. If you use foreign currencies, you can only buy/sell Precious Metals (ounce) in US dollar rather than any other foreign currency. If you do not have US dollar in your account, please convert the foreign currency in the account to US dollar first.
4. You need a multi-currency current account for trading precious metals in US dollar.

XI. Risk Warning
Buying/selling precious metals via personal account involves many risks such as policy risk, price risk, interest rate risk, security risk in communication system and security risk in network system. Prices can fluctuate drastically depending on international political and economic factors and other emergency events. You should be fully aware of the inherent risks and make independent judgment for your investment.

XII. Definitions
Bid Price: the price at which the bank buys precious metals and the customers sell precious metals.
Ask Price: the price at which the bank sells precious metals and the customers buy precious metals.
Profit-taking order: an order whose price is superior to the spot trading price. The customer buys precious metals at a price lower than the spot bid price or sells precious metals at a price higher than the spot ask price. The order will be closed when the quoted price reaches the profit-taking price.
Stop-loss order: an order whose price is inferior to the spot trading price. The customer sells precious metals at a price lower than the spot bid price or buys precious metals at a price higher than the spot ask price. The order will be closed when the quoted price reaches the stop-loss price.
Two-way entrustment includes profit entrust and stop-loss entrust. After the two-way entrust agreement is signed, upon the closing of either one, the other will be void automatically.
Two-way order: an order that includes both profit-taking order and stop-loss order. Upon the closing of either one, the other will be void automatically.
Revolving order: an order that includes the first order and the second order placed at the same time. The two orders involve the same type of transaction but opposite trading directions, and the bid price is lower than the ask price. When the quoted price reaches the price of the first order, the first order will be closed and the second order will take effect, and when the quoted price reaches the price of the second order, the second order will be closed and the first order will take effect again, and the process goes on like this. The order will be void upon expiry or cancellation by the customers.
One-to-many order: an order that includes two or more than two orders placed at the same time. Arranged in the order of selection, the orders involve the same trading currency, different types of transaction and the same trading direction. When the quoted price reaches the price of a particular order, the order will be closed and the other orders will be void; when the quoted price reaches the price of several orders, the first order will be closed and the other orders will be void. One-to-many order can include as many as six orders at the same time.
Trigger order: an order that takes effect at the trigger price. The order will take effect when the quoted price reaches the trigger price and when the quoted price reaches the price of the order, the order will be closed.
Supplementary order: an order added to profit-taking order, stop-loss order and two-way order (main order). The order could be a profit-taking order, a stop-loss order or a two-way order. The trading direction of supplementary order must be opposite to that of the main order. As a contingent order, supplementary order must be placed along with the main order and it will take effect only after the main order is closed. When the main order is a two-way order, the customer can only choose between profit-taking order and stop-loss order as supplementary order. When a two-way order is closed, only the order added in the trading direction of the main order will take effect.

Note: Information herein is for reference only. Please refer to announcements and regulations of local branches of ICBC for further details. ICBC retains the ultimate interpretation rights.


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