The Risk Assessment Study Physical Gold Investment Trading Mode

With the constant improvement of people’s living standard and financial awareness, goldhas become one of the best ways for household assets reserve. As the only kind ofinternationally recognized assets which can break through the barriers of regions, languages,religions, culture, education, emotion, time, space, etc., gold can be converted into cash at anytime, which makes the investment more flexible and efficient, and presents huge opportunitiesfor development. However, the biggest problem for gold buy-back is that there is no suitabletrade products or business models. To meet the market demand, Jin Bao Hui (Beijing) GoldInvestment Co. LTD introduces a new business named “Jin Bao Hui” Gold Card business.This paper studies the potential risks in the operation of “Jin Bao Hui” Physical GoldInvestment Trade Model. The author establishes a risk evaluation index system for “Jin BaoHui” Physical Gold Investment Trade Model through the identification and analysis of riskfactors in the model based on the risk control theory and the principle of risk evaluation indexselection. This paper also studies the “Jin Bao Hui” Gold Card through the risk evaluationindex system, evaluates the potential risks in the future operation of “Jin Bao Hui” PhysicalGold Investment Trade Model, determines the risks through the expert scoring methodbased on the quantitative research of risk factors, and finally proposes risk aversion methodsfor the future development of “Jin Bao Hui” Physical Gold Investment Trade Model.If the potential risks in the “Jin Bao Hui” Physical Gold Investment Trade Model can beeffectively avoided and the “Jin Bao Hui” Gold Card business can develop successfully, thenvarious gold derivative products can be developed based on the brand and scale advantages.Moreover, Gold ETF Funds channels can be expanded and three-dimensional productstructure and investment system can be formed. Furthermore, we can discuss the feasibilityand operability of using “Jin Bao Hui”Gold Card as consumption debit card..