Multiple Banks Issue Announcements Warning of Gold Investment Risks, Experts Say Credit Card Gold Trading May Violate Regulations

This week, international gold prices were highly volatile, once breaking through $3,500 per ounce, setting a new historical high. The prices of jewelry gold from multiple brands also rose to over 1,000 yuan per gram.

With gold prices fluctuating at highs, how are the sales at offline gold stores? Recently, CCTV reporters visited multiple gold stores across the country.

Gold Prices Fluctuate at Highs, Jewelry Gold Trade-In Favored

Consumer Mr. Zhao: The holiday is approaching, and I have some unused old gold. I want to exchange it for a gold bracelet for my family.

During the visit, reporters found that there are quite a few people like Mr. Zhao who exchange old gold for new jewelry.

Consumer Ms. Shi: My birthday is in a couple of days, and I wanted to take a look. But now that gold prices are high, I want to think about it more, or bring my old gold to exchange.

Several managers of offline gold stores told reporters that under high gold prices, except for a small number of customers with urgent needs, most customers have more concerns and a stronger wait-and-see sentiment when purchasing gold jewelry. In contrast, customers are more willing to accept trade-in by paying the price difference.

Li Yan, Manager of a Gold Store: As gold prices rise, costs increase, and customers' desire to purchase decreases. So customers are also more inclined to trade-in, accounting for more than 80%, paying a little processing fee for the trade-in.

Industry insiders told reporters that besides trade-in, the high gold prices have also pushed consumers from jewelry gold to investment gold with financial attributes.

Li Shanshan, Manager of a Gold Store: Investment and financial attribute gold, gold bars, including gold beans favored by young people, the sales of these financial attribute products have surged.

Experts Warn: "Gold Speculation" with Credit Cards Is High-Risk and Potentially Illegal

With gold prices fluctuating at highs, gold investment continues to heat up. Some people buy gold with loans or credit card cash advances and even share so-called "strategies" on social media.

Multiple banks have issued announcements warning of investment risks and stated strict control over "gold speculation" with credit cards. Experts say that recent high volatility in gold prices, leveraging to chase rising gold prices, carries significant financial risks.

Zeng Gang, Director of the Shanghai Finance and Development Laboratory: Although gold has hedging and value-preserving attributes, its price fluctuations are also influenced by multiple factors such as international situations and monetary policies, making it difficult to sustain a unilateral rise in the long term. Buying gold with loans is investing with borrowed money. Investors not only face the risk of changes in the principal but also need to bear additional interest expenses and repayment pressure.

In addition, experts remind that China has clear requirements for the use of loans and credit card funds, and related funds must not be used for gold investment and other fields.

Dong Ximiao, Chief Researcher of Zhaolian: Applying for consumer loans or using credit card cash advances to invest in gold carries compliance risks. Once discovered by financial institutions, the related funds may be required to be repaid in advance, credit card limits may be reduced or suspended, and related behaviors may be included in the credit system.