Core Viewpoint - The article highlights the risks associated with illegal financial activities in the gold trading sector, particularly in Shenzhen, urging the public to be vigilant against fraudulent schemes disguised as legitimate gold investment opportunities [2][4]. Summary by Sections Illegal Financial Activities - The Shenzhen Municipal Financial Committee warns that with fluctuations in gold prices, some individuals and companies are engaging in illegal activities under the guise of gold trading, such as "gold entrustment," "gold leasing," and "gold investment," which may involve illegal fundraising, fraud, and gambling [2][3]. Regulatory Framework - China has a licensing system for financial businesses, and any organization or individual must obtain permission from national financial regulatory authorities to engage in financial activities. Relevant laws and regulations specify that futures trading must occur on legally established exchanges, and only qualified financial institutions can conduct gold asset management [3][4]. Public Awareness and Warnings - The article emphasizes that gold jewelry dealers and stores are not financial institutions and lack the qualifications to engage in gold asset management or public deposit solicitation. The public is advised to avoid misleading investment pitches promising guaranteed returns or high interest rates [4][5]. Recent Incidents - In mid-September, reports emerged of over ten gold merchants in Shenzhen's Shui Bei area facing operational issues, with some having disappeared. Investigations revealed that these merchants were involved in high-leverage betting transactions disguised as gold trading, which deviated from normal business practices [4][5]. Legal Consequences - On October 11, the Shenzhen Gold Jewelry Association issued a warning regarding three companies involved in illegal gambling activities under the pretense of gold trading. The authorities have taken legal action against the responsible individuals, highlighting the serious legal repercussions for such fraudulent activities [5].

Core Viewpoint - The recent surge in gold prices has led to unprecedented demand in Shenzhen's gold market, with reports of long queues for purchasing gold and significant price increases in both wholesale and recovery prices [3][4]. Group 1: Market Demand and Price Trends - A gold shop owner in Shenzhen noted that the demand for gold has reached a level where customers are queuing to buy it, a phenomenon not previously observed [1] - As of October 13, gold prices have surpassed $4,130 per ounce, marking a single-day increase of over 3% and a year-to-date rise of nearly 60% [3] - The wholesale price of gold in Shenzhen's market has risen to 935 yuan per gram, while the recovery price has reached 905 yuan per gram [3][4] Group 2: Business Practices and Risks - The volatility in gold prices has led to a boom in sales, but it has also resulted in some businesses engaging in risky practices, including "gambling" with gold [4][9] - Reports indicate that several gold merchants in the Shenzhen area have faced operational issues, with some going out of business due to high-risk trading practices [4][9] - The Shenzhen Gold and Jewelry Association has issued warnings regarding illegal activities disguised as gold trading, particularly those involving high-leverage betting on gold prices [7][11] Group 3: Regulatory Response - The Shenzhen Gold and Jewelry Association has called for strict adherence to legal standards and a return to core business practices focused on physical gold transactions [11] - The association emphasized the importance of internal management and compliance to prevent illegal activities within the industry [11] - A warning was issued to all member units to conduct self-assessments and rectify any potentially illegal business practices immediately [11]

Core Viewpoint - The article highlights the recent operational anomalies among gold traders in Shenzhen's Shui Bei area, revealing that some businesses have engaged in illegal gambling-like activities under the guise of gold trading, leading to legal repercussions and industry warnings [1][2]. Group 1: Industry Anomalies - Over ten gold traders in Shenzhen's Shui Bei area have reportedly faced operational issues, with some businesses already abandoned [1]. - The operational problems stem from a pricing model that allows traders to control large amounts of gold with minimal capital, enticing customers to engage in high-leverage betting on gold price movements [1]. - The Shenzhen Gold and Jewelry Industry Association issued a warning after three companies were found to be conducting illegal online gambling activities disguised as gold trading [2]. Group 2: Legal and Regulatory Responses - The association's warning emphasized that any business operating under the pretense of gold trading but engaging in non-physical delivery and high-leverage betting is illegal [2]. - Companies are urged to focus on legitimate physical gold and jewelry operations, avoiding any virtual trading or speculative activities [2]. - There is a call for enhanced internal management and compliance with legal standards to prevent violations and ensure responsible business practices [2]. Group 3: Market Dynamics - International gold prices have surged, with the price per gram in Shui Bei exceeding 900 yuan, impacting consumer behavior [3]. - The shift in market dynamics has led to increased disputes related to borrowing, selling, and consignment practices within the gold jewelry sector [3]. - The transformation of gold traders from "dealers" to "speculators" highlights a lack of modern risk management mechanisms in the market [3].