Core Viewpoint - The recent rumors regarding the operational issues of over ten gold material suppliers in Shenzhen's Shui Bei area have been addressed by the Shenzhen Gold and Jewelry Industry Association, which claims that 60%-70% of these suppliers are still operating normally, with only about 30% facing problems, primarily small-scale businesses [2][3][5]. Group 1: Industry Response - The Shenzhen Gold and Jewelry Industry Association has conducted on-site visits and confirmed that many of the rumored troubled businesses are still functioning normally [2][3]. - The association is collaborating with local government departments to implement measures for the standardized development of the gold material supplier industry, including market education and the creation of a warning list for high-risk businesses [3][4]. Group 2: Market Dynamics - The Shui Bei area is recognized as China's largest gold processing industry base, generating several hundred billion yuan in annual output [3][4]. - Gold material suppliers primarily operate by recycling old gold items and selling processed gold plates to retailers, profiting from the price difference between recovery and sales [4]. Group 3: Causes of Operational Issues - Some gold material suppliers have faced severe financial difficulties due to aggressive short-selling strategies in the gold market, leading to significant losses as gold prices surged from $3,400 to a peak of $3,715.2 per ounce [5][6]. - The use of high leverage in speculative trading has exacerbated the financial strain, with losses escalating as global gold prices remained near historical highs [6]. Group 4: Market Recovery - Following the association's clarification, the gold recovery business in the Shui Bei area is beginning to stabilize, with recovery merchants resuming operations after initial hesitance due to the rumors [7].