Core Viewpoint - Yongkun Gold, a local Zhejiang enterprise, has faced a sudden collapse in its investment operations, leading to significant investor losses and legal actions against the company [3][17]. Group 1: Company Overview - Yongkun Gold was established over ten years ago and claimed to offer guaranteed returns on gold investments, which built investor trust [3][12]. - The company operates both online and offline investment channels, providing various gold-related products and services [6][9]. - Yongkun Gold's parent company, Yongkun Holdings, is a comprehensive service provider in the gold industry with a registered capital of 120 million yuan [12]. Group 2: Recent Developments - As of May 20, investors reported difficulties in withdrawing funds from Yongkun Gold, and the company's customer service became unresponsive [1][3]. - By May 23, Yongkun Gold and its parent company were placed on the market supervision authority's list of abnormal operations, indicating serious operational issues [3][17]. - The physical stores of Yongkun Gold have closed, with reports of the company moving out of its locations [10][11]. Group 3: Investor Reactions - Investors expressed frustration and confusion at the company's sudden inability to fulfill withdrawal requests, leading to heated disputes with company representatives [4][6]. - Many investors had previously increased their investments based on the company's promises of guaranteed returns and successful past transactions [7][9]. Group 4: Industry Context - The collapse of Yongkun Gold is not an isolated incident; other companies in the gold investment sector have also faced similar issues, highlighting systemic risks in the industry [19][20]. - Common fraudulent practices in the gold investment sector include high promised returns and the use of "gold custody" schemes that lack proper regulatory oversight [20][21]. - Regulatory bodies have issued warnings about the risks associated with unlicensed gold investment schemes, emphasizing the importance of verifying the legitimacy of investment firms [20][21].

Core Viewpoint - The article discusses the risks associated with the investment practices of Yongkun Gold, highlighting the company's high promised returns and the subsequent inability of investors to withdraw their funds, indicating potential fraudulent activities [2][3][24]. Group 1: Investment Practices - Yongkun Gold attracted investors by offering annualized returns between 5% and 9% through gold storage and repurchase contracts [4][6]. - The company established a customer tiered return system, with higher returns for larger investments, promising returns that exceed typical gold investment yields [6][9]. - The online platform offered a "pre-order gold bar" product, which appeared to guarantee returns, allowing investors to either withdraw their principal or benefit from price increases [10][11]. Group 2: Financial Scale and Operations - Yongkun Gold has reportedly raised over 3.6 billion yuan through its pre-order gold bar sales, indicating a significant scale of operations [16]. - The company claims to have insured gold stored in a bank vault, with an insurance amount of approximately 857 million yuan and a total gold value exceeding 4.1 billion yuan [20][19]. Group 3: Regulatory and Legal Concerns - Yongkun Gold lacks the necessary qualifications to operate gold asset management services, which raises concerns about the legality of its investment practices [25][26]. - The company has been listed as operating abnormally by local authorities, indicating potential regulatory violations [25]. - Legal experts suggest that the company's practices may constitute illegal fundraising or disguised collective investment schemes, posing significant risks to investors [28][29].