Core Viewpoint - The Shenzhen Gold and Jewelry Industry Association has clarified that 60%-70% of gold material suppliers are operating normally, with only about 30% facing issues, primarily small-scale businesses [1][2][3] Group 1: Current Situation of Gold Material Suppliers - Recent rumors indicated that over ten gold material suppliers in the Shenzhen Shui Bei area were experiencing operational abnormalities, with some reportedly having vacated their premises [2] - The association has responded to these rumors, stating that many of the companies listed are still operating normally and that law enforcement is involved in addressing the issues of those that are not [2][3] - The association is in communication with local government to implement measures for the sustainable development of the gold material supplier industry, including market education and risk warning lists for high-risk businesses [3] Group 2: Reasons Behind Operational Issues - The operational issues faced by some gold material suppliers are attributed to significant losses incurred from aggressive short-selling strategies in the gold market, leading to cash flow problems [4] - Since late August, gold prices surged from $3,400 to a peak of $3,715.2 per ounce, prompting suppliers to bet on price declines, which resulted in substantial losses as prices continued to rise [4] - Some suppliers used all their available funds and gold inventory to short-sell, leading to severe financial strain when prices increased, causing a few to choose to "run away" from their obligations [4] Group 3: 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 market rumors [5]