Gold beans removed or repriced as new tax policy takes effect
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A recent policy change in China is disrupting the popular practice among young investors of buying small gold granules, known as 'gold beans,' as a monthly savings method. According to a report by China Business Journal on September 24, multiple e-commerce platforms have removed gold bean and zodiac gold products, while some jewelry brands have raised prices. An investor noted that a frequently used store was no longer available. Previously, gold beans were sold at investment-grade prices, lower than jewelry gold. However, a new tax policy effective November 2025, as explained by Tianfu Liyan Financial Research Institute President Zeng Gang, strictly defines investment-grade gold as bars, blocks, ingots, sheets, and legal gold coins with 99.5% purity. Gold beans, being granular and non-standard, fall outside this definition and must be treated as non-investment jewelry, subject to higher taxes and pricing. This has led to compliance risks and profit compression for sellers, prompting many to either raise prices to jewelry levels or delist products pending clearer guidelines. Concurrently, major jewelry brands like Lao Feng Xiang, Lao Miao, and Zhou Shengsheng have seen gold prices drop to around 1,300 yuan per gram from over 1,400 yuan a month ago, reducing the cost of traditional wedding gold sets by about 5,000 yuan.
Source report
Some consumers prefer gold jewelry, others invest in gold bars. But for a growing number of younger buyers, purchasing "gold beans" (small granular gold pieces) each month has emerged as a new form of personal finance.
September 24 — According to China Business News, multiple e-commerce platforms have recently removed gold bean and zodiac gold products from their shelves. Some jewelry brands have also raised prices on gold beans.
One investor noted: "I buy one gram of gold beans every month to accumulate gold. The store I usually buy from has now taken the product down."
What Are Gold Beans?
Gold beans were previously priced similarly to investment-grade gold and sold in small gram weights, making them a popular choice for savers looking to accumulate gold gradually.
Inconsistent Practices Among Major Brands
On September 23, a sales representative from Chow Tai Fook (潮宏基) told reporters:
- Gold beans: 1,155 yuan/gram
- Jewelry gold: 1,310 yuan/gram, with a 100-yuan discount per gram
However, other jewelry brands have already removed gold beans from their offerings. A Beijing-based jewelry brand representative said: "We no longer sell investment-grade gold beans."
Policy-Driven Changes
A gold market analyst explained that the shape and specifications of gold beans do not meet the policy-defined categories for gold bars, blocks, ingots, sheets, or legal gold coins. As such, they should be classified as non-investment-use gold.
Zeng Gang, director of the Tianfu Lijing Financial Research Institute, noted that under the gold tax policy implemented by the Ministry of Finance and the State Administration of Taxation in November 2025:
- Investment-use gold is clearly defined as direct sales or processing into gold bars, blocks, ingots, sheets, or legal gold coins with a gold content of 99.5% or above, eligible for VAT refunds and other tax benefits.
- Gold beans, being granular and of non-standard specifications, fall outside this scope and should theoretically be treated as non-investment-use gold, subject to the tax and pricing logic of jewelry gold.
Previously, market practice was to price gold beans at investment-grade gold rates, significantly lower than jewelry gold prices. This was effectively a "gray-area" pricing strategy. With the policy now in effect, the compliance of such pricing is under challenge, and gold bean prices are expected to align with jewelry gold.
Why Products Are Being Pulled or Repriced
Zeng Gang cited two main reasons:
- Policy compliance pressure: Gold beans do not qualify as investment-grade gold under the new policy. Selling them at investment-grade prices carries tax risks. To avoid disputes, merchants are either removing the products or repricing them as jewelry gold.
- Cost and profit recalibration: Under the new policy, the tax burden on non-investment-use gold processing has increased. If merchants continued selling gold beans at the original low prices, profit margins would be severely compressed or even negative. Raising prices or delisting products has become a safer interim strategy.
Additionally, the market is still adjusting to the policy's interpretation and implementation details. Some brands have chosen to temporarily delist gold beans, waiting for clearer policy guidance before deciding whether and how to resume sales.
Gold Price Trends
As of September 24:
- Lao Feng Xiang (老凤祥): 1,300 yuan/gram, down 17 yuan from the previous day
- Lao Miao Gold (老庙黄金): 1,293 yuan/gram, down 17 yuan
- Chow Sang Sang (周生生): 1,297 yuan/gram, down 12 yuan
Just one month earlier, on August 25, all three brands had broken through 1,400 yuan/gram, reaching a three-month high:
- Chow Sang Sang: 1,408 yuan/gram
- Chow Tai Fook: 1,410 yuan/gram
- Lao Miao: 1,407 yuan/gram
Prices have now fallen to around 1,300 yuan/gram, a cumulative drop of over 100 yuan/gram.
Impact on "Three Golds" Wedding Set
This price correction has significantly reduced the cost of purchasing the traditional "Three Golds" (about 50 grams of gold jewelry for weddings):
- One month ago: approximately 70,400 yuan
- Now: approximately 65,500 yuan
- Savings: about 5,000 yuan
Sources: News Fang, China Business News, China-Singapore Jingwei Editor: Wu Fan
Source
新浪财经Eastern
Part of this Story
China’s new gold tax rule forces removal or repricing of popular “gold bean” investments