Gold Fever Grips China, but Regulators Say Beware
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As gold prices soar to unprecedented highs, Chinese regulators are ramping up warnings over a surge in investment scams targeting retail consumers — ranging from shady purchasing agents to illegal “gold custody” services promising guaranteed returns.
During the National Day holiday starting Oct. 1, international gold prices surged past $4,000 an ounce. On Oct. 13, London spot gold touched a record $4,060, prompting local prices for gold retailers like Chow Tai Fook to hit 1,180 yuan per gram. The milestone sparked a retail frenzy, with buyers rushing in on expectations of further gains.
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- Gold prices surpassed $4,000 an ounce in October 2024, inciting a retail buying surge and numerous investment scams in China.
- Authorities have identified three major fraud types: gold custody Ponzi schemes, fake gold leasing rebates, and virtual investment platform scams.
- Regulators warn only licensed institutions can offer gold investments and advise consumers to avoid high-yield promises and use official channels like banks or ETFs.
- Chow Tai Fook
- Chow Tai Fook is identified as a gold retailer in China. On October 13, its local gold prices reached 1,180 yuan per gram, following a surge in international gold prices past $4,000 an ounce. This milestone contributed to a retail frenzy among buyers.
- China Gold
- A China Gold franchise in Beijing collapsed in March 2024. Customers who had stored bullion at the shop under "gold custody" arrangements were unable to recover their holdings. This incident served as a wake-up call regarding illicit gold-related schemes.
- Kingold Jewelry
- Kingold Jewelry is not mentioned in the provided article content. Therefore, no information about Kingold Jewelry can be extracted from this text.
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