Core Viewpoint - The Shenzhen Water Bay area has seen significant issues with gold jewelry companies engaging in illegal gambling activities disguised as gold trading, leading to legal actions against three companies for suspected casino operations [1][2]. Group 1: Industry Issues - Over ten gold merchants in the Shenzhen Water Bay area have reportedly faced operational abnormalities, with some businesses already vacated [1]. - The problematic business model involves a "pre-order price" system that allows merchants to control large amounts of gold with minimal capital, enticing customers to engage in high-leverage betting on gold price movements [1][2]. - The Shenzhen Gold and Jewelry Association issued a warning letter highlighting that three companies were found to be conducting "non-physical gold betting" through online platforms, which constitutes illegal gambling [2]. Group 2: Regulatory Response - The association emphasized the need for strict adherence to laws, warning that any business operating under the guise of "gold trading" that involves non-physical delivery and high-leverage betting is illegal [2][3]. - Companies are urged to focus on legitimate physical gold and jewelry operations, avoiding any virtual trading or speculative activities that deviate from core business practices [2][3]. - There is a call for enhanced internal management and responsibility among company leaders to prevent violations and ensure compliance with legal standards [3]. Group 3: Market Conditions - The international gold price has shown strong performance, with the price per gram in the Water Bay area exceeding 900 yuan, indicating a shift in consumer behavior [3]. - The gold jewelry industry has faced disputes related to borrowing, selling, and consignment practices, with existing high-risk trading models like private betting and illegal off-market transactions [3].