Gold beans removed or repriced under new tax rules, hitting young savers

Overview

While some consumers favor gold jewelry and others invest in gold bars, a growing number of younger buyers have turned to purchasing "gold beans" (small granular gold pieces) each month as a new form of wealth management.

According to a September 24 report by China Business Journal, multiple e-commerce platforms have recently removed listings for gold beans and zodiac-themed gold products. Some jewelry brands have also raised prices on gold beans.

Investor Impact

One investor noted: "I buy one gram of gold beans every month to accumulate gold, but the store I usually buy from has taken them down."

Gold beans were previously priced similarly to investment-grade gold and, due to their small weight, were a popular choice for investors looking to accumulate gold gradually.

Inconsistent Brand Responses

A survey of major jewelry brands reveals inconsistent approaches as of September 23:

• Chow Tai Fook (Chow Sang Sang): A store representative stated that gold beans are priced at 1,155 yuan/gram, while jewelry gold is 1,310 yuan/gram with a 100 yuan discount.
• Other brands: Some jewelry brands have already removed gold bean products entirely. A Beijing-based jewelry brand representative said: "We no longer sell investment-grade gold beans."

Policy Background

A gold market analyst explained that the shape and specifications of gold beans do not meet the policy-defined categories of gold bars, blocks, ingots, sheets, or legal gold coins, and should therefore be classified as non-investment use.

Zeng Gang, director of the Tianfu Liyan Financial Research Institute, pointed out that under the new gold taxation policy implemented by the Ministry of Finance and the State Administration of Taxation in November 2025:

• Investment use is clearly defined as the direct sale or processing of gold with a purity of 99.5% or higher into bars, blocks, ingots, sheets, or legal gold coins, which qualify for VAT refund and exemption benefits.
• Gold beans, being granular and of non-standard specifications, fall outside this scope and should theoretically be classified as non-investment use, subject to the tax and pricing logic of jewelry gold.

Previously, market practice was to sell gold beans at investment-grade gold prices, significantly lower than jewelry gold prices. This was effectively a "gray-area" pricing approach under ambiguous policy conditions. With the new policy in effect, the compliance of this pricing method is now challenged, and gold bean prices are expected to align with jewelry gold.

Reasons for Removal or Price Hikes

Zeng Gang cited two main factors:

1. Policy compliance pressure: Gold beans do not meet the investment-grade gold categories specified in the new policy. Continuing to sell them at investment-grade prices carries tax risks. To avoid disputes, merchants have chosen either to remove the products or reprice them as jewelry gold.

1. Cost and profit recalibration: Under the new policy, the tax burden on non-investment gold processing has increased. If gold beans were still sold at the original low prices, merchant profits would be significantly compressed or even negative. Removing products or raising prices has become a safer transitional strategy.

Additionally, market understanding and implementation details of the new policy are still being refined. Some brands have chosen to temporarily suspend sales to observe how the policy landscape develops before deciding whether and at what price to resume.

Market Price Movements

As of September 24:

• Lao Feng Xiang: 1,300 yuan/gram, down 17 yuan from the previous day
• Lao Miao Huang Jin: 1,293 yuan/gram, down 17 yuan
• Zhou Shengsheng: 1,297 yuan/gram, down 12 yuan

Just one month earlier (August 25), all three major brands had broken through 1,400 yuan/gram, with Zhou Shengsheng at 1,408 yuan/gram, Chow Tai Fook at 1,410 yuan/gram, and Lao Miao at 1,407 yuan/gram—a three-month high. Prices have now fallen to around 1,300 yuan/gram, a cumulative drop of over 100 yuan/gram.

Impact on Traditional "Three Golds" Purchase

This price correction has significantly reduced the cost of purchasing the traditional "Three Golds" (approximately 50 grams of gold items). One month ago, the cost would have been about 70,400 yuan. Now, it is only about 65,500 yuan, saving consumers approximately 5,000 yuan.