Core Viewpoint - The new tax policy on gold, effective from November 1, 2025, to December 31, 2027, will implement a series of value-added tax adjustments for standard gold traded on the Shanghai Gold Exchange and Shanghai Futures Exchange, potentially impacting gold market consumption and pricing dynamics [1][4]. Group 1: Impact on Gold Jewelry Pricing - The average price of gold jewelry has shown fluctuations, with current prices around 1265 CNY per gram, and some items priced significantly higher based on craftsmanship and branding [1][2]. - Retailers indicate that the new tax policy will lead to a cost increase, but they do not plan to raise prices immediately, suggesting a stable consumer demand despite the tax changes [2][4]. - Major gold brands have already increased their prices, with average prices now exceeding 1260 CNY per gram, indicating a market response to the anticipated tax adjustments [2][3]. Group 2: Tax Policy Details - The new regulation categorizes gold transactions into "investment" and "non-investment" uses, affecting how value-added tax is applied, with investment gold enjoying tax exemptions while non-investment gold faces increased costs [3][5]. - For non-investment gold, the input tax deduction has been adjusted, leading to an approximate 7% increase in costs for merchants, which may be passed on to consumers [4][5]. - Individuals frequently selling gold jewelry may be subject to taxation if their activities are deemed as "business sales," which could lead to a 3% value-added tax on sales [5]. Group 3: Market Dynamics and Consumer Behavior - The gold recovery market remains stable, with buyback prices around 900 CNY per gram, indicating a consistent demand for recycled gold despite the new tax policy [2][3]. - The new tax policy is expected to encourage consumers to opt for "old-for-new" exchanges, as this may present a more cost-effective option amidst rising prices [2][4]. - The policy aims to guide consumer and investor behavior towards compliance and professionalism in gold transactions, potentially reducing market volatility in the long term [5].