Core Viewpoint - The Shenzhen water bay area is experiencing operational anomalies among over ten gold material merchants, raising concerns about potential risks in the gold investment market [1][5]. Group 1: Market Situation - In mid-September, rumors emerged regarding operational issues among gold material merchants in Shenzhen's water bay area, with some businesses reportedly vacated [1]. - The Shenzhen Gold and Jewelry Industry Association issued a statement highlighting that some merchants are engaging in illegal "gold investment" activities disguised as physical gold trading, which poses significant risks such as high leverage and potential funding chain disruptions [1][3]. Group 2: Industry Response - The association called for compliance with regulations, urging merchants to avoid illegal operations and any form of disguised futures trading or high-leverage gambling [3]. - It emphasized the importance of risk awareness, careful selection of partners, and thorough due diligence to prevent associated risks [3]. Group 3: Industry Characteristics - Shenzhen's water bay area is the largest gold jewelry processing base in China, generating several hundred billion yuan in annual processing output [4]. - Gold material merchants primarily act as suppliers, recovering large amounts of old gold bars and jewelry, refining them into standard gold plates for resale to retailers [4]. Group 4: Price Trends and Risks - Recently, international gold prices have shown strong performance, with local gold jewelry prices exceeding 850 yuan per gram [5]. - The market has seen disputes arising from borrowing, selling, and consignment practices, with past incidents of merchants absconding with significant amounts of gold [5]. - Industry experts indicate that the recent issues stem from a shift in the role of gold material merchants from "traders" to "speculators," highlighting a lack of modern risk control mechanisms in the market [5].

Core Viewpoint - The article discusses the operational anomalies faced by over ten gold material merchants in the Shenzhen Shui Bei area, raising concerns about potential risks in the gold trading market [1][2]. Group 1: Market Situation - In mid-September, rumors emerged about operational issues among gold material merchants in Shenzhen, with some businesses reportedly vacated [1]. - The Shenzhen Gold Jewelry Industry Association issued a statement highlighting that some merchants were engaging in illegal "gold investment" activities disguised as physical gold trading, which poses significant risks such as high leverage and potential funding chain disruptions [2][4]. Group 2: Industry Response - The association called for compliance with regulations, urging merchants to avoid illegal operations and any form of disguised futures trading or high-leverage betting [4]. - It emphasized the importance of risk awareness, careful selection of partners, and thorough due diligence to prevent associated risks [4]. Group 3: Economic Impact - Shenzhen Shui Bei is recognized as China's largest gold jewelry processing base, generating several hundred billion yuan in processing output annually [5]. - The recent surge in international gold prices has led to changes in consumer behavior, with the price of gold jewelry reaching over 850 yuan per gram [5]. Group 4: Historical Context - Previous incidents, such as the case of "Qianbaiwan Jewelry," where a merchant allegedly absconded with 200 million yuan worth of gold, highlight the risks associated with credit transactions in the industry [5]. - The article notes that the shift in role from "trader" to "speculator" among gold material merchants has contributed to the current market risks [6].

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].