Recently, news of a boss losing one billion RMB by trading gold in Shenzhen Shuibei Gold Market has surged to the top of various hot search lists. This event has not only exposed the high risks of gold investment but also reflected the various chaos in the current Chinese gold market.
Shenzhen Shuibei is one of the largest gold trading hubs in mainland China, attracting a large number of investors and businesses in recent years. The recent roller-coaster market of gold has caused many participants to become deeply entangled. Data shows that the annual trading volume of Shenzhen Shuibei Gold Market exceeds 5,000 tons, but behind the high returns lies high risks. Many businesses choose to hoard goods when the gold price is high, but as the price declines, some have to sell at a lower price, resulting in losses.
According to reports, a boss in Shenzhen Shuibei had invested in gold through leveraged trading and high-interest loans, attempting to gain huge profits. However, with the drastic fluctuations in international gold prices and the uncertainty of market conditions, the boss ultimately failed to control the risk, leading to massive losses. Currently, the Shenzhen police have intervened to investigate the matter. This news has sparked high attention and discussions within the industry.
In 2025 so far, international gold prices have experienced drastic fluctuations, reaching a historical high at the beginning of the year with an increase of 2.27%. However, the subsequent frequent adjustments have caught many investors off guard.
The event of the aforementioned boss suffering huge losses from gold investment is not an isolated incident. In recent years, the chaos in Shenzhen Shuibei Gold Market is not limited to the actions of individual businesses. According to Shenzhen Online reports, some Shuibei businesses have blindly ventured into gold investment in pursuit of higher profits, lacking necessary expertise and risk control capabilities. Faced with the volatility of gold prices, they often have to helplessly bear massive losses, prompting doubts about the risk management capabilities of the Shuibei gold market.
According to Phoenix Net’s investigation, illegal activities among businesses in the Shuibei market are not uncommon, such as rigged scales, gold theft, and price manipulation, severely damaging consumer interests. This malignant competition not only disrupts market order but also makes the entire gold investment environment more complex and dangerous.
Information from Zhongwang News indicates that some industry insiders pointed out that some businesses use conditions below the Shanghai Gold Exchange price to attract counterparty businesses and engage in gambling operations. This model may bring short-term gains when gold prices rise, but it can easily lead to fund chain fractures when prices fall.
An industry insider stated, “Gold investment may seem simple, but it involves too many factors, including international gold prices, exchange rate fluctuations, and policy changes. Without sufficient experience and financial strength, it’s easy to fall into the quagmire of losses.”