The People’s Bank of China has ordered every dealer of precious metals and gemstones to file a large transaction report on any cash purchase of greater than ¥100,000 (US$13,700) starting August 2025. Reports must reach the Anti Money Laundering Monitoring and Analysis Center within five working days, and sellers must perform “know-your-customer” due diligence on each buyer.
The new “Management Measures” raise the cash reporting threshold from ¥50,000 and extend AML obligations to retailers across the entire bullion and gemstone supply chain.
Beijing’s AML upgrade aims to choke illicit cash channels, but its immediate effect is likely to be paradoxical: a front-loaded surge in legitimate retail buying that tightens supply and props up prices through the summer.
Once the rule kicks in, higher compliance costs could push more volume onto digital payment rails, giving regulators clearer visibility but also nudging premiums wider on physical bars—especially the 50-gram and 100-gram formats favoured by household investors.
Longer term, the policy fits a broader pattern: tighten financial plumbing at home while encouraging strategic investment—whether in offshore gold assets or marine technology—that supports national priorities.
It is expected there will be more rush into gold bars between now and August as investors try to avoid the paperwork. Dealers in Shenzhen and Shanghai report a spike in small-bar orders and advance bookings for July, according to local trade desks.
Spot gold printed US$3,342.60 per ounce on Wednesday, the highest close in three weeks and 42% above its year-ago level. The PBOC itself noted that Shanghai Gold Exchange futures hit an all-time peak in April.
This comes at a time when producers are positioning for sustained strength. Zijin Mining recently agreed to buy Kazakhstan’s Raygorodok mine for US$1.2 billion. The deal boosts reserves ahead of a planned Hong Kong float for Zijin Gold International and supports management’s target of joining the world’s top three gold producers by 2028.
At a high-level meeting on July 1, President Xi Jinping called for “high-quality development” of the marine economy and a unified national market—language that sent marine-economy concept stocks higher in Shanghai trading. Analysts see the twin themes—ocean industries for growth, gold for safety—defining China’s capital flows over the next five years.
Information for this briefing was found via South China Morning Post and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
