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[Music] Some people say gold prices are rising so exaggeratedly, buying gold is equivalent to making money. But do you know that in Shenzhen, some gold shops are no longer selling gold, but gambling on gold? They enter the market to gamble. Today, the gold market has become a glittering casino. This episode will take everyone to read Gao Tianyou's article "Gold Prices Keep Rising, Gold Shops are Casinos." In March last year, when the international gold price broke through $2,000 USD and set a new high, we had gold shops that made customers' blood vessels burst. Behind this involved a "chicken coop" called gold custody. Time flies back a bit. As it approached $4,000 USD, gold dealers were called "chicken beasts." The area known as "Pig Ba" street in Shenzhen, with its tens of thousands of merchants, has recently had three gold companies investigated by the authorities. It is suspected that they were engaged in leveraged trading with leverage up to 80 times, turning it into a casino. International gold prices have been rising since September 2022. At that time, the market price was around $1,600 USD. Driven by a bull market, it is currently challenging the $4,200 USD mark. In just three years, it has risen by 150%, significantly outperforming the S&P 500 and A-shares. According to the latest analysis report from the US, gold prices are expected to rise to $6,000 USD next year. As gold prices continue to break new highs, there is also a gold fever among the people. Many Hong Kong people are taking out gold from safety deposit boxes and under their beds to sell at gold shops. The prices are particularly good. Recently, large crowds of citizens have been queuing up daily to buy and sell gold. This shop has a special system. They announce tomorrow's prices at noon. On the other hand, compared to Hong Kong gold shops, the prices offered by dealers are particularly high. Japanese people are all about personality. Therefore, some Hong Kong people do not understand and specifically bring their gold jewelry to sell. Among them, Shenzhen's Shuibei area is the most popular among Hong Kong people. This area is known as "Pig Ba" street, with tens of thousands of merchants. It is one of the most important global hubs for jewelry and gold. While Hong Kong people are keen on gold, mainland Chinese people are eager to buy gold. Many people believe that the market is in a bull run and want to get on the train. Therefore, Shuibei is crowded with people every day. Local gold dealers in Shenzhen have middle-aged people carrying a large pile of gold bars and ingots, and young people spending 1,000 RMB to buy gold grains, hoping to achieve wealth. However, Shuibei has recently been in turmoil. According to the Shenzhen Gold Jewelry Industry Association, last week, six gold companies in Shuibei were investigated by the authorities for suspected illegal business operations. It was pointed out that the responsible persons of the relevant companies have been subjected to compulsory measures and will face serious legal consequences. According to a report by First Financial, the so-called "non-transactional" business is a model in the Shuibei market. It mainly involves some downstream manufacturers and sellers paying gold to upstream refiners, locking in the gold price in advance to obtain raw materials. In theory, this model helps gold reduce operating costs and avoid losses due to price fluctuations. Generally speaking, after the refiner and gold shop reach an agreement, they will operate in the market. As gold prices continue to fall and break new highs, more and more people are interested in participating in the "locked-in gold" model. This model not only provides raw materials for gold shops but also accepts individual customers. Some even set up online platforms to attract retail investors, and through upstream and downstream channels, it is like turning the market into a casino. Currently, futures on the Shanghai Gold Exchange require a margin of 4% to 10%. The Shuibei refiners' model only charges a deposit of 1.25%. The entry threshold is very low, making it very attractive. It is equivalent to being able to do leverage up to 80 times. Following the deepening of the locked-in gold price, some people buy high and some buy low. A large part of the refiners further withdraw from the spot market. After fully hedging, it is like playing the role of a dealer themselves. The risk of digestion is increasing day by day, especially recently. If there is no sufficient hedging in the market, it is easy to go bankrupt due to lack of goods. There will inevitably be a large number of defaults. Private accounts. As early as September, one of the large merchants in Shuibei suddenly reported that due to trading losses, funds were lost unreasonably, amounting to at least tens of millions of RMB. For example, according to calculations, the explosion of private accounts has attracted attention, prompting Shenzhen authorities to investigate multiple suspected merchants in Shuibei. As mentioned in the article "Gold Shops in Beijing and Shenzhen are Running Away" in March last year, at that time, gold shops in Beijing did not give any warning. The so-called gold shops saved costs and could even get two to three years of profit. However, some gold shops sold their entrusted gold to invest in real estate with high returns. As the domestic market and gold prices continued to fluctuate, some gold shops could not replenish their inventory and could not return to customers, so they had to run away and go bankrupt. It can be seen that the widening of the gap has benefited some people. The most tragic are those who have been drawn into the "chicken coop" for profit, resulting in their blood vessels bursting. Ultimately, whether prices rise or fall, investors are best advised to participate in the gold market through channels such as spot trading and futures. Never gamble in a casino-like model with a low entry threshold and high returns. Leverage can only be considered if you are qualified. The program time is almost up. We will discuss hot topics with everyone next time. Goodbye. Subscribe to YouTube's exclusive offer. Just scan this QR code to get the online version for 30 yuan per month. That's less than half a dollar a day. Subscribe quickly! [Music]