FINANCE

Chinese Gold Retailer Curbs Buybacks as Prices Fluctuate Sharply

Published: Feb. 4, 2026 2:51 a.m. GMT+8

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Customers form a looping queue for buyback services on the third floor of Caishikou Department Store on Feb. 3, 2026. Photo: Caixin

A leading Chinese gold retailer has restricted its buyback services after extreme price volatility spurred a rush among investors to liquidate their holdings.

The Caishikou Department Store in Beijing, better known as Caibai, announced on Monday evening that it is tightening repurchase rules as global gold prices retreat from historic highs, revealing the operational risks jewelers face during periods of frantic selling.

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Caibai, a major Chinese gold retailer, limited gold buybacks amid extreme price swings, suspending services on weekends and public holidays and capping transaction amounts.
Gold prices reached nearly $5,600/oz in late January 2026, then dropped over 20% to below $4,500/oz, triggering widespread sell-offs and long lines at retailers.
Analysts urge caution, as short-term volatility remains high, though fundamental support for gold persists due to global monetary uncertainties.

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Who’s Who

Caishikou Department Store: Caishikou Department Store (Caibai) is a leading Chinese gold retailer in Beijing. The state-backed company recently restricted its gold buyback services due to extreme price volatility. This measure aims to manage risks from frantic selling, especially when the Shanghai Gold Exchange is closed, and to regulate inventory depreciation during market declines.

China National Gold Group: China National Gold Group is a prominent gold retailer in China. Reports indicate that their outlets, alongside banks and other jewelry chains, experienced a surge in gold redemptions from investors. This influx was driven by investors seeking to profit from fluctuating gold prices, which saw a significant reversal after nearing historic highs.

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What Happened When

Spring 2025：: A substantial gold price rally began.

Late January 2026：: London spot gold approached a historic high near $5,600 an ounce.

Late January 2026：: Benchmark Au99.99 gold price on the Shanghai Gold Exchange peaked above 1,200 yuan per gram.

January 29, 2026：: London spot gold price plunged 5% to around $5,100 an ounce.

Before February 2, 2026：: Gold prices continued dropping, dipping below $4,500 an ounce at one point.

February 2, 2026：: Caishikou Department Store (Caibai) announced tightened gold buyback rules.

February 3, 2026, 10 p.m. Beijing time：: Spot gold had not yet reclaimed the $5,000 mark; Au99.99 price closed at 1,197.9 yuan per gram on the Shanghai Gold Exchange.

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