China has unveiled its first specialized industry standard for gold trade-in services, addressing long-standing issues such as opaque pricing and inconsistent verification practices. The "Gold Trade-In Business Service Specification" (referred to as the "Standard"), drafted under the leadership of the China Gold Association, was recently released, filling a regulatory gap in the sector.
The Standard establishes a comprehensive framework covering eight core sections, including service principles, corporate qualifications, staff requirements, facility standards, service procedures, and complaint supervision. It emphasizes transparency, compliance, and consumer protection throughout the trade-in process.
Nankai University finance professor Tian Lihui noted that the gold trade-in market has long suffered from irregularities like "pricing black boxes" and unreliable purity verification. The Standard aims to restore trust by ensuring fair transactions and standardized operations.
Gold trade-ins are a significant consumption model in China’s jewelry market, accounting for roughly 20% of national gold jewelry sales. Following the 2024 State Council policy promoting large-scale equipment upgrades and trade-in programs—combined with high gold prices—demand for such services has surged. However, the lack of uniform regulations has exposed weaknesses in consumer protection.
The Standard mandates that businesses must hold proper licenses, comply with tax and anti-money laundering rules, and ensure staff undergo professional training. Verification processes must be conducted under surveillance with customers present, and destructive testing requires prior consent. Detailed documentation of gold content, quality, wear, and pricing must be provided to consumers.
Liu Yanhong, a China Gold Association executive and member of the National Gold Standardization Technical Committee, stated that the Standard prioritizes "integrity, transparency, and compliance," creating a multi-level governance system involving policy guidance, regulatory constraints, corporate self-discipline, and consumer oversight.
The new rules are expected to curb malpractice, such as weight manipulation, unjustified price reductions, and undisclosed fees, which have eroded industry credibility. By enhancing consumer rights—including clear fee disclosures and verification transparency—the Standard aims to eliminate hidden charges and promote fair competition.
Professor Tian highlighted that the Standard empowers consumers with greater oversight while raising industry barriers, potentially driving out non-compliant operators and consolidating the market around reputable players.
Amid China’s push to boost domestic demand and green consumption, the Standard is poised to revitalize gold trade-in activity, particularly under current high-price conditions. Tian noted that the policy aligns with national strategies by unlocking the potential of idle gold assets and supporting sustainable consumption.
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