At present, the domestic gold investment channels in China are narrow, and there are few varieties that can be easily invested, which leads to the limited understanding of gold by the public and scholars. Many ordinary citizens are eager to invest in gold, but there are many misunderstandings. Therefore, we must first master the following knowledge. In China, ordinary people can usually see gold products, mainly gold ornaments. But gold jewelry is not a good investment variety. Gold ornaments have aesthetic value, and the extra cost of buying gold ornaments themselves is very high, and the purchase price is quite different from the intrinsic value of gold raw materials. From gold nuggets to gold ornaments, jewelers have to process them, and with the profits of manufacturers, wholesalers and retailers, these expenses will eventually be borne by buyers. At the time of sale, this part of the cost is only borne by the buyer himself, so the actual transaction cost of gold jewelry is very high. In addition, gold and silver jewelry will be worn to varying degrees in daily use. If the old gold and silver jewelry is realized, its price will be discounted compared with the original weight. For example, 200 1, the world gold price is at the lowest level in the past 25 years, with an average price of 270 US dollars/ounce. At that time, the price of gold ornaments was around 90 yuan, but when the price of gold rose to $480/oz in 2005, the market price of gold ornaments was 125 yuan. Assuming that gold investment was purchased in that year, the return on investment should be 77.8% simply from the price of gold raw materials (referring to the price of US dollars). However, if investors buy gold ornaments, the minimum purchase price of 200 1 is 85-95 yuan/gram, and the maximum repurchase price of old gold purchased by ordinary gold merchants does not exceed 1 10 yuan/gram. It can be seen that if investors invest in gold jewelry, even if the world gold price rises so much, they will not be able to enjoy the benefits brought by the rise of gold, and a large amount of investment income from investing in jewelry gold will be consumed in various intermediate costs.