Shenzhen Jewelry Store “Honesty & Sincerity” Ran Away with Customers’ Money, Incurring Losses of Over 300,000 Yuan
In a recent scandal, a jewelry store in Shenzhen failed to deliver the silver that customers had already paid for and ordered. The store owner is suspected of fleeing with the money. It is currently known that over 350 individuals have been affected by this incident, with investors losing over 300,000 Yuan.
The price of silver has been steadily increasing, leading many investors in mainland China to shift towards investing in silver. However, some jewelry stores have been accepting payments without delivering the goods, leaving investors without refunds.
According to a report from the Chengdu Media Group’s “Red Star News” on January 17, a jewelry store owner Wu Ming (alias) from Chongqing revealed to the media on January 16 that since November 2025, he had been placing orders for silver bars and jewelry at a jewelry store named “Honesty & Sincerity” in Shenzhen. Initially, after transferring funds to Honesty & Sincerity, they would ship the same day.
The issue arose in December 2025, when Wu Ming, after receiving orders from customers, placed three orders with Honesty & Sincerity and paid in full. The store mentioned that delivery would take around 15 days.
By January 10, 2026, when the expected delivery time arrived, Wu Ming urged Honesty & Sincerity to expedite the shipment, to which they responded, “We are gradually shipping.” On the morning of January 14, Wu Ming noticed in a group chat with Honesty & Sincerity that investors were claiming that the store had fled. Subsequently, many individuals in various chat groups also mentioned that Honesty & Sincerity had fled.
As Wu Ming did not receive the goods, he had to compensate the customers himself, with the related losses exceeding 300,000 Yuan.
On social media, some users posted videos claiming that Honesty & Sincerity jewelry store had “collapsed.” Downstream merchants who suffered losses from undelivered goods lined up at the store for registration. In the videos, Honesty & Sincerity was shown as closed. On January 16, a netizen who posted a video informed the media that as per her knowledge, Honesty & Sincerity had been closed for two to three days.
According to a report from the Shanghai Newspaper Group’s “Blue Whale News,” some investors who had not received their silver had already reported the case to the police. A rights protection group has gathered over 350 people. However, some involved merchants claimed that the rumors of the owner fleeing were false. Nevertheless, the owner indeed could not deliver the money or the goods. On January 14, the store could no longer operate normally, with the owner and the police present. Many people were queuing to register the amounts involved in the case. After reconciliation, the store owner would sign a document, but no specific follow-up plan was agreed upon.
Data shows that the price of physical silver has risen significantly over the past year. According to Wind data as of January 16, 2026, the spot price of silver in London was $90.80 per ounce, an increase of approximately 214% from around $28.91 per ounce on January 1, 2025.
Due to the soaring price of silver, more and more businesses have ventured into silver investment. On January 17, a jewelry business owner, Xu (alias), operating at the Shuibei International Jewelry Trading Center in Shenzhen, told “Red Star News” that with the rising silver prices, various businesses such as those selling gold, diamonds, jade, and pearls have now also started selling silver bars. Most of these merchants follow the “pay first, receive goods later” method, while some require a deposit upfront and full payment upon product arrival.
Regarding the reasons for the “collapse,” an industry expert told “Blue Whale News” that the reasons are quite complex. It could be that suppliers speculated on a drop in the silver price but did not anticipate the continuous rise in market prices. It could also be due to a lack of timely restocking and mature risk-hedging mechanisms.
Zhao Liangshan, a senior partner at the Hengda Law Firm in Shaanxi, advised investors who paid in full but did not receive the goods to secure evidence first. If the other party becomes unresponsive, fabricates facts, misappropriates funds, is suspected of fraud or illegally absorbing public deposits, they should report the case to the public security organs through the economic investigation department with evidence, to seek prosecution, asset recovery, and loss mitigation.
In response, netizens speculated that the store may have been “shorted.” When the price of silver jewelry surged, the owner may not have had the goods on hand. Assuming that the silver price would fall, they accepted full payments at the time, planning to buy when it dropped to cover the gap. However, with prices continuously rising, the gap widened, leading to the owner fleeing.
Another netizen commented that the incident is essentially a result of the skyrocketing silver prices causing a squeeze in the supply chain. Many businesses at Shuibei, who transitioned to selling silver bars, were mostly operating on a “pay first, receive goods later” basis, without hedging against price fluctuations. As the silver price kept increasing, the cost of goods surged, becoming unsustainable. Additionally, many small merchants lacked qualifications, increasing the probability of accepting payments without delivering goods and then fleeing. They emphasized that when investing in silver, it’s important not only to consider the rise in prices but also the credibility of the counterparty.
The practice of payment before goods delivery is a transaction method in which the buyer pays the price first during the trading process, and the seller delivers the goods afterward. This model is common in business, especially in high-risk or new customer scenarios, to reduce transaction risks and ensure stable cash flow. After the buyer pays the amount, the seller will deliver the goods at the time and place agreed upon in the contract. If the seller fails to deliver on time or the products delivered do not meet the agreement, it constitutes a breach of contract and the buyer can demand compensation.
A netizen named “Muzi Li” believed that under the surge in silver prices, the “pay first, receive goods later” model poses extremely high risks.
Tianyancha information shows that Shenzhen Honesty & Sincerity Jewelry Co., Ltd. (the operating company of Honesty & Sincerity) was established in 2022, located in Shenzhen, Guangdong province, and engages in wholesale business.