The recent volatility in gold prices has given investors a rollercoaster experience. As prices fluctuate significantly, doubts about the continuation of gold's upward trend have emerged, prompting many to reconsider the liquidity of their gold jewelry and bullion, hoping to sell while prices remain high. A recent trending news story about a young couple profiting 184,000 by selling their wedding "jewelry" has captured wide attention.

So, what channels are available for selling gold jewelry and bullion? According to reporters from the 21st Century Business Herald, the main options currently include several gold retailers and banks that offer buyback (or recycling) services. However, the buyback prices can vary significantly, and many places only repurchase their own products. Some banks also require that the gold must be stored with them to be eligible for buyback services.

In addition to banks and gold shops, some third-party institutions offer gold buyback services, including companies like China Gold.

Buyback options often limited to proprietary products

Most gold shops and banks primarily buy back gold jewelry or bullion they have sold, with only a few banks and retailers accepting products from other brands. For example, Chow Tai Fook can buy back other brand's jewelry, and ICBC may accept bullion from other banks, but the buyback price is generally lower than for their own products.

Not all gold retailers and banks provide buyback services. Among commercial banks, Xinda Bank has stated that it currently does not offer gold buyback services, while China Merchants Bank and Construction Bank only repurchase physical gold stored at their institutions, not items taken out. Many gold shops, such as Lao Feng Xiang, Chow Tai Fook, and Luk Fook Jewelry, have indicated that they do not offer buyback services.

Chow Tai Fook and Luk Fook Jewelry do offer a trade-in service for old jewelry. For depreciation of old gold items, Chow Tai Fook states that it depends on the level of wear and tear. Luk Fook Jewelry mentions that if the jewelry was purchased at a fixed price, it will be evaluated at a 30% depreciation rate. For instance, if an item bought for 1,000 yuan is brought for trade-in, it would be valued at 700 yuan. If priced by weight, it will be valued at 88% of the current gold price.

Different channels offer varying buyback prices. According to the Shanghai Gold Exchange, as of October 21, 15:30, the price for AU99.99 was approximately 987 yuan per gram. On the same day, 21st Century Business Herald reported that Chow Tai Fook customer service quoted their buyback price for gold jewelry on October 21 at 965 yuan per gram.

If the gold bars were purchased from a bank, the discount on buyback may be comparatively smaller. On the afternoon of October 21, the Agricultural Bank app showed a gold buyback price of 983.12 yuan per gram, while ICBC posted a live buyback price of 985 yuan per gram (last updated at 17:00), with other gold buyback prices at 979 yuan per gram.

From the policies of bank buybacks, the actual buyback prices mostly reduce the Shanghai Gold Exchange's real-time gold price by 3-10 yuan. Some banks publish real-time buyback prices on their apps. In general, the banks tend to have smaller markdowns based on market price, resulting in relatively higher buyback prices.

Complex buyback procedures at banks

Both banks and shops require that the transaction receipts, purchase proof, and other documentation be provided during the buyback, with banks maintaining particularly stringent requirements. It’s best to retain the original packaging for the gold items.

For instance, Postal Savings Bank stipulates that the physical products must be in good condition, without visible defects, with complete surface elements (including brand identification, weight, purity) matching the labeled weight. Agricultural Bank requires the original packaging and complete transaction documentation. Chow Tai Fook customer service mentioned that documentation from the purchase, including a guarantee certificate, is needed; failing to present receipts incurs a 2% deduction.

The buyback process at banks can be more complicated than at gold shops, typically requiring prior inquiry (if the branch handles gold buybacks) and an appointment, followed by gathering documentation to process the transaction, which usually includes a physical inspection of the gold. Ping An Bank’s gold buyback can be done without visiting a branch, with a process that allows for online appointments and onsite pickup.

ICBC mandates documentation such as identity cards, ICBC debit cards, gold products, and customized certificates when initiating buyback. Agricultural Bank requires identity card, bank card, gold product, product certificate, buyback certificate, and purchasing proof. Gold shops usually offer a simpler buyback process, albeit with comparatively lower prices.

Investors should consult relevant banks or retailers about their buyback services before purchasing physical gold or jewelry, as well as inquire about buyback prices and processes. After making a purchase, it’s advisable to keep all relevant receipts and proofs in a safe place.

It’s important to note that bank buyback policies may vary by location and be subject to change; early consultation with local branches is recommended. Some banks support gold buyback services at only a few branches, and others may support only bullion buybacks. When choosing where to sell, it’s best to approach the original purchasing bank or retailer, as non-sellers may offer lower prices compared to market rates.

Balancing Collection and Investment Needs

If the main purpose is investment, gold bars might be a better choice compared to jewelry or other gold products, which have fewer buyback avenues and might incur more significant markdowns from market rates. Additionally, banks offer various gold investment products. Some products cater solely to investment needs, while others fulfill both investment and physical gold extraction requirements.

For instance, many banks are currently offering gold saving plans, where one can actively buy and save gold shares or contribute periodically. Upon accumulating a certain amount, it’s possible to withdraw physical gold, converting the gold shares into physical products. If one prefers not to withdraw or hold physical gold, they can opt to redeem or sell the shares (equivalent to selling gold).

Of course, for those solely looking to invest in gold without holding the physical product, there are also bank account precious metal services; however, price fluctuations in precious metals can lead to potential investment losses or gains. Generally, account precious metal services involve higher risk and require investors to have adequate risk tolerance. For most investors, gold services that meet both investment and physical extraction needs would be a better choice.