Make 7000 yuan a day?, Go to Hong Kong to buy gold bars

After the popularity of depositing in Hong Kong, buying gold bars in Hong Kong has also become popular! Recently, Zhongxin Jingwei found on many social media platforms that some bloggers shared their experience of buying gold bars from Hong Kong and reselling them in mainland China, claiming that a round trip can earn thousands of yuan. Some bloggers also summarized which gold stores have a cheaper unit price. In some social media chat groups, there are also many netizens discussing how to make money by taking advantage of the difference in gold prices between the two regions.

Buy gold in Hong Kong and earn 7000 yuan a day?

On the afternoon of the 18th, Zhongxin Jingwei arrived at the Li Chang Jinpu located in Sheung Wan, Hong Kong Island. There were already several customers waiting on the sofa in the store.

Taizheng, who came from Shenzhen, revealed that there was a significant price difference between Hong Kong gold and mainland gold last week. After purchasing gold bars from Hong Kong and selling them to a gold recycling merchant in Shenzhen Shuibei, he could earn around 16-17 yuan per gram. He and his friends traveled multiple times within a week, and one day they made two trips, earning over 7000 yuan per day. However, as gold prices have fallen this week, the price difference has already been around 10 yuan.

"When buying gold from Hong Kong, the gold store will add a few yuan per gram, and the owner will also deduct a few yuan when going to Shuibei for recycling. In addition, the exchange rate loss needs to be taken into account, so it is not as high as rumored. If the price difference is within 6 yuan, it is not worth a special trip," said Taizheng.

In addition, Zhongxin Jingwei has noticed that there are also businesses specializing in gold recycling that have heard of it. Xiaoyun, who opened a gold shop in Shuibei, Shenzhen, specifically came to Hong Kong to purchase gold. According to her introduction, her recycling price is usually reduced by 2-3 yuan based on the real-time quotation of Rongtong Gold.

Will there be a situation where the price of gold fluctuates and falls below the purchase price after purchase? Regarding this, Xiaoyun said that it is difficult to determine the trend of gold prices, and it usually needs to be sold on the same day.

Taizheng also expects that such a market trend will not last too long, and it will become increasingly difficult to do in the future.

In the afternoon of that day, the quotation provided by the staff of Lichang Gold Shop showed that for the purchase of 50 grams of gold, the price per gram was approximately HKD 491.5, equivalent to approximately RMB 458.4. The real-time quotation of Rongtong Gold shows that the repurchase price of gold on that day is 468 yuan per gram. If you purchase 50 grams, excluding transportation, accommodation, and other costs, the profit is about 500 yuan.

If you take the East Rail Line to and from Shanghuan Jindian and Shenzhen Shuibei, the transportation cost is about 100 yuan. In addition, if it is necessary to exchange currency back and forth, profit margins will be further compressed.

Rongtongjin is a precious metal service provider operated by Shenzhen Jinzhengjin Jewelry Co., Ltd. The company was founded in 2012 and is located in Shenzhen Shuibei, a well-known jewelry trading center. Its main business includes repurchasing gold, platinum, palladium, silver, and spot trading.

Why is Hong Kong gold cheaper than mainland China?

Ma Yinchen, a researcher at the Zhixin Investment Research Institute, told China News Service that Hong Kong has certain cost advantages in terms of non tax and value-added tax, so there may be some differences in gold prices compared to mainland China. In addition, this price difference is also related to the recent depreciation of the Chinese yuan against the US dollar and Hong Kong dollar.

Some institutional research reports have also pointed out in recent analysis that the domestic gold price in China will remain relatively strong and volatile due to the expected fluctuations in the renminbi.

Wang Xiang, a fund manager of Boshi Gold Trading Open ended Securities Investment Fund, stated that the sharp increase in the price difference between domestic and foreign gold is mainly driven by the approaching National Day sales peak season, where many downstream jewelry merchants hold centralized ordering meetings, and the recent relatively low import volume of gold is related.

In addition to demand factors, Wang Lixin, CEO of the World Gold Council in China, emphasized supply issues in an interview with China News. According to the analysis of the World Gold Council, the supply of gold in mainland China cannot meet local demand, and there are certain controls on the import of gold from mainland China, which makes gold somewhat scarce, resulting in mainland gold prices generally higher than international gold prices, excluding transportation costs.

According to iFinD from Tonghuashun, after August 11th, there was a divergence in the price trends of Au9999 on the Shanghai Gold Exchange and spot gold in Hong Kong. Previously, the price increase of spot gold in Hong Kong has been higher than that of gold on the Shanghai Gold Exchange, Au9999. But thereafter, the price of gold Au9999 steadily increased, with a daily closing of 469.18 yuan/gram on September 18th; The spot gold price in Hong Kong continued to rise until September 1st when it began to decline, with a lower increase than the Shanghai Gold Exchange gold price of Au9999.

Ma Yinchen believes that with the basic stability of the RMB exchange rate, the difference in gold prices between Hong Kong and mainland China is not expected to undergo significant changes in the future.

Wang Xiang believes that the short-term high price difference between domestic and international gold prices may continue for a period of time, but ultimately it will inevitably recover towards the historical average. The situation of "strong domestic and weak external" since the second half of last year may gradually usher in a turning point.

There are risks associated with buying gold in Hong Kong and entering the country

It should be pointed out that although there is a price difference between domestic and international gold prices, which gives buying gold in Hong Kong a certain price advantage, the risks behind it cannot be underestimated.

Wan Zhe, a researcher of the the Belt and Road College of Beijing Normal University and former chief economist of China Gold Group, told Sino Singapore Jingwei that ordinary consumers went to Hong Kong to buy consumer gold jewelry, and a small number of them did not have problems. But if you go to Hong Kong to buy gold and then return to the mainland to earn the price difference, you need to be cautious. There is a fundamental difference between outbound tourism consumption and commercial operations aimed at earning price differences. If it exceeds the legal standards, it is suspected of smuggling. It is recommended that consumers travel abroad in compliance and legality, and not touch the legal bottom line.

On the 19th, Zhongxin Jingwei, as an ordinary resident, called the customer service of the National Customs System 12360 and Shenzhen Customs 12360 to inquire. According to the latest regulations, whether it is mainland or Hong Kong resident passengers, the amount of gold and its products that can be carried into the country is limited to self use and a reasonable amount. The specific recognition criteria are determined by the customs law enforcement personnel at the port of entry, and they should actively declare to the customs when entering the country. According to relevant regulations, gold and its products exceeding self use and reasonable quantities shall be deemed as imported goods, and customs shall release them through taxation with the approval of the People's Bank of China. If there is no approval, the specific handling method will be determined by the customs at the port of entry.

The customer service of the National Customs System 12360 also stated that generally speaking, if the value of items carried with you exceeds 5000 yuan, additional taxes need to be paid.

Shenzhen Customs 12360 customer service suggests consulting with the port of entry in advance to confirm the specific carrying standards.

Subsequently, Zhongxin Jingwei consulted with Shenzhen Huanggang Port Customs as a resident and learned that the port uses 50 grams as a reasonable standard for personal use, and any excess must be released with the approval of the People's Bank of China. "It's not just about paying taxes, there must be approval documents, so don't take the risk of being caught by customs and it will be very troublesome," said the customs staff mentioned above.

"Gold, as a traditional safe haven asset, is usually favored by investors as a safe haven tool when there is uncertainty in the market. However, due to this demand for safe haven, the push on gold prices is often relatively short-lived, and the market heat will change with the fluctuations of gold prices themselves, so the duration of the heat varies." Ma Yinchen said.

Ma Yinchen also mentioned that the long-term positive trend of gold prices remains unchanged, but it is by no means a win-win situation. In the short term, gold prices may maintain the volatile region since the beginning of this year due to the uncertainty of the Federal Reserve's monetary policy. It should be noted that the allocation of gold usually has a long cycle, and it is best to use it as a long-term allocation variety to reduce short-term speculation, especially in the context of frequent fluctuations in the US dollar and gold prices. The allocation of gold needs to consider the risk of market fluctuations.

Wang Lixin stated that data from the World Gold Council shows that gold is an ideal risk diversification tool. The calculation model shows that economic growth is the fundamental variable driving China's gold consumption. With the continuous recovery of the economy and the arrival of the peak consumption season, it is believed that gold consumption will continue to maintain its current momentum. However, high gold prices may make some consumers choose to wait and see. Investors should evaluate their strategies for investing in gold based on their own risk preferences and investment capabilities.