Amid a significant surge in international gold prices, the cost of domestic gold jewelry has climbed accordingly. On March 2nd, the listed prices for pure gold jewelry at multiple major brand retailers continued to rise, surpassing 1,620 yuan per gram, with widespread increases exceeding 20 yuan per gram.
While legitimate gold transactions, such as gold jewelry sales and gold recycling, are thriving, some illegal gold-related activities are also gaining traction. Recently, a disguised lending model known as "gold installment" plans has emerged. Intermediaries are luring consumers with urgent short-term financing needs using hooks like "zero-down-payment gold installments, cash-out on the same day." Similarly, installment shopping platforms attract users with models promising "zero yuan to order, enjoy now pay later, limited-time interest-free" offers.
Beneath the surface of these seemingly helpful "gold installment" services, the annual percentage rate (APR) can reach astonishing levels, potentially nearing 1000%. What is the underlying scheme?
High-Interest Lending Disguised as Legal Gold Trading Recently, a consumer, Mr. Wang, reported encountering a new form of "predatory lending" disguised as a gold installment plan. Mr. Wang stated he came across an advertisement for a gold installment service on a short-video platform, which claimed to help solve financial difficulties by purchasing gold with a low initial payment. At a time when he urgently needed money, Mr. Wang followed the instructions and signed a "Gold Purchase and Sale Contract" with a gold store in Bengbu City on October 21, 2025. The contract was for a 999 pure gold ancient-method bracelet priced at 1,310 yuan per gram, plus a processing fee of 100 yuan per gram. The total weight was 9.75 grams, amounting to a total price of 13,747.5 yuan. After receiving the gold, Mr. Wang paid a "down payment" of 3,247.5 yuan that same day. The remaining balance of 10,500 yuan was to be paid in 5 installments (15 days per installment), with each installment being 2,100 yuan.
Intending to solve a cash flow problem, why was Mr. Wang guided into a "gold installment" plan? He explained that he was told the process involved purchasing the gold first and then selling it for cash, either through partnered recycling points or via his own channels.
However, because the recycling price is typically lower than the market price, Mr. Wang only received slightly over 9,000 yuan after selling the physical gold. "After deducting the 3,247.5 yuan down payment, I actually received about 6,000 yuan, but I'm required to repay 13,747.5 yuan. This is even worse than loan-sharking," Mr. Wang said. He subsequently defaulted on the payments due to an inability to repay. Recently, through court mediation, Mr. Wang and the gold store reached a new repayment agreement, stipulating that he must clear the remaining debt by August 10, 2026.
Calculations based on a principal of 6,000 yuan and a repayment period of 10 months reveal that the actual APR for Mr. Wang's loan was a staggering 226%. Ultimately, Mr. Wang not only failed to solve his immediate financial crisis but also risked falling deeper into debt.
Another individual, Mr. Kang from Wuhu, Anhui, was taken directly to a gold store by a loan intermediary to arrange a similar "gold installment" plan. Mr. Kang mentioned that the store recommended a gold ornament with a listed price of 37,000 yuan. When he expressed an inability to pay, the intermediary immediately offered to "help" by covering the down payment, charging a "contract signing fee" of 100 yuan for the service.
"After selling the gold, I received about 26,000 yuan in cash, but I have to repay approximately 37,000 yuan in total, divided into 6 installments due every 10 days, with each installment being 6,300 yuan," Mr. Kang stated, expressing immense repayment pressure and questioning whether this constitutes disguised usury.
Searches on social media and short-video platforms reveal numerous advertisements related to "gold installment" services. Posts with content like "Buy gold even without money, 10k-500k, simple process, funds in 30 minutes," "Available if currently no overdue payments or enforcement actions, contracts undergo judicial notarization," and "10k-200k, zero down payment, zero interest, get gold in-store, for those who can't get credit loans or maxed-out online loans, come here for a full cash-back" directly expose the true nature of these disguised high-interest lending operations.
Notably, documents provided by Mr. Wang show that besides the "Gold Purchase and Sale Contract," the gold store also had him sign multiple "Commitment Letters." These letters included commitments that he did not purchase the gold through an intermediary and that the purchased gold would not be gifted or sold during the installment period. This indicates that the physical stores offering "gold installment" services are not unaware of the cash-out behavior involved.
Legal experts suggest that gold stores using "zero-down-payment" installment gold sales and establishing "Purchase and Sale Contracts" aim to conceal the true high-interest lending relationship between the parties. They may seek enforceable instruments through commercial arbitration, severely undermining financial regulatory order. Such trading activities essentially constitute civil juristic acts performed under a false declaration of intent and should be deemed invalid.
The "Buy Now, Pay Later" Trap of Online Installment Malls While disguised lending under the guise of "zero-down-payment gold installments" gains popularity offline, online platforms are also attracting consumers with short-term funding needs using similar models like "zero yuan to order, enjoy now pay later, limited-time interest-free."
A consumer, Xiaoqing (pseudonym), reported that a loan intermediary recently sent her a QR code for an online installment mall, claiming to be an "insider" offering approval-free transactions with immediate cash-out based on available credit limits, a repayment term of 180 days, and zero down payment. Needing funds, Xiaoqing trusted this claim and used her "enjoy now, pay later" credit to purchase gold, mobile phones, and other goods in installments before selling them for cash.
A screenshot of an order provided by Xiaoqing shows that in early February, she purchased a 5-gram pure gold tableware set (bowl, chopsticks, spoon) from the "Zebra Good Items Mall" for 8,200 yuan, repayable in three installments. At that time, the price of pure gold in the Shuibei market was around 1,200 yuan per gram, indicating a markup of approximately 37% for this product. After selling the items, she received only about 5,000 yuan but was still obligated to repay the full 8,200 yuan.
Guided by the intermediary, Xiaoqing repeated the process of placing orders and cashing out on multiple installment mall platforms. Due to the short intervals between repayments and the high amounts, she eventually defaulted and is now facing concentrated debt collection efforts from several platforms.
Installment malls represent a lending model that emerged following the implementation of new regulations for loan facilitation. By creating their own online shopping environments, these loan facilitation platforms bundle high-markup products like branded phones and gold jewelry with installment services. This model allows the malls to generate dual income from product price differences and financial services, effectively bypassing regulations while maintaining high profits.
Multiple media reports have exposed the "predatory" nature of these malls, where consumption is a pretext for lending. The prices of goods like mobile phones and gold sold on these platforms are generally higher than market prices. Often, after users provide personal delivery addresses, they do not actually receive the goods. Instead, platforms facilitate "recycling" at low prices through virtual shipments or intermediary guidance. Furthermore, hidden fees such as "contract signing fees" and "notarization fees" are often deducted during the cash-out process, further reducing the actual amount received by the consumer. Repayment cycles on these platforms are typically short, calculated in 10-day intervals or weekly, with the first few installments often accounting for over 80% of the total repayment, creating intense pressure and easily trapping consumers in a vicious cycle of "using new loans to repay old ones."
Statistics indicate that by the end of 2025, the number of such installment malls nationwide exceeded one thousand, with estimated annual transaction volume reaching 600 billion yuan. Leading platforms reported single-month transaction volumes as high as 200-300 million yuan.
Most operators of these platforms are technology or e-commerce companies, typically with registered capital around ten million yuan and often newly established. For example, the operator of "Zebra Good Items Mall" is Shanghai Linlian Data Technology Co., Ltd., established in July 2024 with a registered capital of 500,000 yuan. It primarily engages in technology promotion and application services and lacks qualifications to conduct financial business. On February 10, 2026, this company was listed as having abnormal operations by the Shanghai Baoshan District Market Regulatory Bureau because it could not be contacted at its registered address.
It is understood that relevant authorities have recently been conducting research and communication with several installment mall platforms, covering aspects such as data security, product pricing, and member rights. This suggests that industry malpractices, such as ultra-short-term lending under the guise of installment malls and charging high membership fees without actual disbursements, may soon be curbed.
Investigations show that facing impending industry regulation and consolidation, many malls have suspended operations or delisted gold jewelry products. However, platforms like "Zebra Good Items Mall" and "Youcheng Mall" still have gold products available for sale.
As of March 1, the price for the aforementioned 5-gram pure gold tableware set on "Zebra Good Items Mall" had increased to 9,100 yuan, with consumers offered three repayment cycles: 15 days, 20 days, or 30 days.
The homepage of "Youcheng Mall" features various product categories including gold beans, gold bars, and gold jewelry. Popular items include pure gold wafers and gold bracelets. A featured 5-gram pure gold wafer is priced at 8,865 yuan, equivalent to 1,773 yuan per gram. On the same day, the real-time price for gold in the Shuibei market was approximately 1,300 yuan per gram, indicating a markup of about 36%.
Information shows that the operator of Youcheng Mall is Shanghai Ranyang Information Technology Co., Ltd., incorporated in March 2021 with a registered capital of 10 million yuan. Its legal representative is Chen Yiran. Besides "Youcheng Mall," Ranyang Technology has also registered mini-programs for "Youcheng Good Items" and "Youcheng Phone Leasing."
Public records indicate that this company is currently involved in 341 judicial cases, with 95.92% of these cases filed as the plaintiff. Lease contract disputes account for 73.18% of the cases. Over the past five years, 76.38% of these cases occurred in 2025, representing the highest proportion.
Regulatory Scrutiny on Illegal Financial Activities in the Gold Sector Many consumers report that the essence of these "gold installment" businesses is conducting financial activities under the cloak of "legal gold trading," with actual borrowing costs far exceeding the statutory interest rate cap of 24%. Consumers generally view these activities as disguised usury and demand that related platforms calculate interest based on the actual amount received.
Industry insiders point out that whether for online installment malls or offline gold store installment plans, the subsequent low-price recycling step is the primary area where consumers are "harvested," leading to significant capital shrinkage.
Local regulators have begun taking action. On February 26, the Shanghai Gold & Jewelry Trade Association issued a "Recommendation Letter on Regulating Recycling Services in Shanghai's Gold and Jewelry Industry." Addressing the "emphasis on sales, neglect of management" approach in some businesses, the letter proposed recommendations focusing on four areas, including implementing mandatory identity registration.
The association required all stores involved in gold jewelry recycling, trade-ins, and similar services to conduct comprehensive self-inspections. The focus is on reviewing past recycling transactions to check for instances where buyer identity information was not registered or verified, where the recycled items clearly did not match the seller's identity, where transaction prices were significantly abnormal, or where the seller's behavior was suspicious.
Furthermore, multiple regulatory bodies have recently issued concentrated risk warnings regarding illegal financial activities in the gold sector. On February 12, the Shenzhen Local Financial Regulatory Bureau, along with nine other departments, jointly released a "Public Notice on Further Regulating Gold Market Business Practices." This notice clearly outlined standard requirements and prohibited behaviors for enterprises, individuals, and financial institutions involved in gold-related businesses. It specified that enterprises must not illegally engage in fund-raising activities under the guise of gold custody, leasing, or repurchase with promises of fixed returns and "principal-guaranteed interest payments." They are also prohibited from developing or peddling illegal gold trading software, apps, or mini-programs, and from participating in illegal gold investment activities through such means.
Industry experts suggest that precise crackdowns on such illegal financial activities require coordinated efforts between market regulators and judicial departments. This involves conducting full-process checks on core links like gold pricing and fund flows, strengthening monitoring of risk signals such as abnormal gold purchases/sales and frequent arbitration cases, and taking legal action against activities that disrupt normal economic and financial order.
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