- Feb 04, 2021
- Business Update
JD Provides Closed-Loop Services for Gold Trade
by Hui Zhang
JD launched an online “Gold Safe” business leveraging its logistics advantages, which is the first of its kind through online platforms in China, to provide one-stop services for gold buying, deposit to selling.
Thanks to JD’s Mini Storage service, which enables individuals and small enterprises to store their goods in JD’s warehouses securely and cost-effectively, consumers can directly store gold products into JD’s warehouses after purchasing from JD and they can take out their gold whenever they want. Their gold products will be delivered by JD Logistics. Consumers can select 90, 180 and 360 days for the storage period.
For gold investors, finding a reliable, stable and efficient agent to sell their gold has always been a problem, although there are many channels to sell gold, from small street stores and pawnshops to gold stores and banks.
Based on the market demand, JD took advantage of its supply chain to develop a gold buyback business in 2018. With its technology advantages, JD cooperated with China National Gold Group and Shandong ZhaoJin Group, to make it possible for consumers to not only buy gold online, but also sell online. Due to the simplicity of online operation, the online gold buyback model has been recognized by consumers and merchants, and has maintained rapid development in the past two years. In January 2021, sales of JD’s gold buyback business increased by 300% YOY.
“Purchasing gold online is becoming popular among consumers, and physical gold investment is gaining more attention. The launch of JD’s “Gold Safe” business will help make it easy and convenient for consumers to invest in gold and further improve the gold trade,” said a spokesperson from JD’s gold business.
As a precious metal for reserves and investment, gold can be considered a barometer of global economic stability. Data from the China Gold Association shows that in the third quarter of 2020, gold bullion and gold coin sales increased by as much as 66.73% YOY.