A Study On The Strategies Of The Precious Metals Business Development Of Bank B

Gold is always a symbol of wealth and status since the ancient times, and it is also the final object what many people are always chasing for. Due to the factors of the international financial crisis, the Greek sovereign debt crisis and the following European debt crisis, the inflation in emerging market economies and the riots of the Middle East and North Africa, the price of gold, a perfect safe haven, kept on creating new high records in recent years. Since2008, the price of gold had risen174.66%, the platinum had risen144.82%, and the price of silver had risen as high as434.01%. The precious metals have the financial functions of value-maintaining, value-adding and anti-inflation. The rising of precious metals’ prices attracts more and more people to invest in precious metals markets, and the trading volume of precious metals market has expanded rapidly, especially in China.The booming development of the domestic precious metals market has brought commercial banks considerable profits. Huge potential of consumption and investment of the domestic precious metals market make banks pay more and more attention to the development of precious metals businesses. On the base of analyzing the current status of domestic and international precious metals market, and the trend of the international financial market, the paper considers that the domestic precious metals market still has plenty of room to reach a full-developed situation. As for that, the development of domestic commercial banks in precious metals business will still keep in a rising in the future. In the following parts, by comparing the characteristics of the precious metal products and the current status of precious metal businesses of domestic commercial banks, the paper presents a comprehensive SWOT analysis of the precious metal business of Bank B. Finally, in accordance with the strengths and weaknesses of Bank B and referring to the advanced experience of other commercial banks in precious metal businesses, the paper makes proposals of the optimization of management mode, the creativity of product development, the cultivation of market, the promotion of derivatives, and the management of risks on the development of precious metal business of Bank B.