Recently, spot gold prices have experienced sustained volatility. On January 29, London spot gold surged to a high of $5,598.75 per ounce, only to plunge to $4,402.06 per ounce on February 2, representing a staggering 21.37% decline over a mere three-day period.

On February 3, spot gold prices rebounded once more, climbing approximately 3.36% to $4,815 per ounce at the time of writing.

Against this backdrop, many investors have opted to sell their gold bars or gold jewelry.

"I just bought a gold necklace weighing around 10 grams last week at 1,650 yuan per gram, and the price dropped just two days later; the decline was too rapid. I'm quickly selling it now and plan to repurchase when prices become cheaper," said Ms. Wu, who was queuing at the buyback counter of Caibai.

According to reports, a visit to Beijing Caibai revealed that on February 2, the buyback counter had a queue of nearly 200 people.

On the third floor of Caibai, staff members were seen holding signs indicating the "End of Buyback Verification Queue," with multiple personnel managing the orderly crowd.

Around 11:00 AM, an investor arrived at the Caibai buyback counter with a 2,000-gram gold bar. After receiving the bar, Caibai staff immediately tested it on a verification machine and calculated the total cash value, amounting to approximately 2.12 million yuan (based on a buyback price of about 1,060 yuan per gram).

A Caibai staff member indicated that the company imposes a daily limit on gold buybacks, ceasing operations once the cap is reached. The daily repurchase volume varies; for instance, approximately 33 kilograms were repurchased on February 1. The buyback counter operates without a midday break, continuing service until the daily limit is met.

"The buyback counter has four or five windows open. Before customers can finalize their transactions, Caibai must verify purchase receipts and ID cards. With nearly 200 people currently in line, the wait is at least two hours. Today, February 2, actually has fewer people; weekends are even busier," the Caibai employee explained.

The staff member detailed that the buyback price for gold bars is Caibai's base investment gold price minus 3.8 yuan per gram, while the repurchase price for pure gold jewelry or ornaments is the base price minus 5 yuan per gram.

Furthermore, Beijing Caibai has issued an announcement stating that, effective February 6, 2026, the company will adjust the rules for its precious metals buyback services across all channels.

Buyback services will be suspended on Saturdays, Sundays, and during public holidays—non-trading days for the Shanghai Gold Exchange. Starting February 6, during business hours, buyback operations will be subject to quota management, including daily aggregate or single-client repurchase limits and maximum single-transaction volumes, with dynamic adjustments.

Notably, while some are eager to liquidate their holdings, many investors are choosing to buy gold at this time.

On February 2, the investment gold purchasing area on the fourth floor of Caibai was bustling with customers inquiring, selecting, and making payments. Designated signs for the "End of Purchase Queue" and "End of Pickup Queue" highlighted the fervent demand for investment gold bars.

A young investor shared his experience, noting that influenced by his parents, he began following the gold market in 2019 and has since co-invested in physical gold with his family. While he typically buys 100-200 grams annually, this year he plans a one-time purchase of 450 grams.

Mr. Li, working in Beijing, rushed to buy a 20-gram gold bar when he saw the price drop to 1,058 yuan per gram. However, during his brief hesitation before payment, the price fell further to about 1,050 yuan per gram, causing him to immediately abandon the transaction. "The gold price is far too volatile now; I need to observe the market further," Mr. Li commented.

So, should one buy or sell at the current gold price? Is now a good time to liquidate?

Wang Hongying, President of the China (Hong Kong) Financial Derivatives Investment Research Institute, stated that in the current environment of significant gold price fluctuations, the decision to sell depends largely on the holder's asset allocation strategy and investment approach.

For short-term traders driven by speculation and emotion, the rapid profit or loss changes due to recent volatility make timely liquidation a rational risk management tactic from a risk control perspective.

For holders who view gold as a long-term family asset allocation, the recent price drop is more of a technical correction following the previous substantial rise, and there is no need for excessive panic; maintaining holdings can help achieve long-term asset allocation goals.

Wang pointed out that for investors who entered the gold market using loans or leverage and now face significant risk, selling to control losses in the short term is also a reasonable choice. Some consumers, concerned about further price declines, opt to liquidate to lock in existing gains, which likewise constitutes a prudent investment behavior.

Separately, Wu Lixian, a strategist at Everbright Securities International, noted that gold is inherently a safe-haven asset. However, when any asset experiences sharp price swings, its risk attributes become apparent. Following the recent steep decline, short-term price volatility is expected to persist.

Key support levels for this correction are roughly in the $4,300 to $4,500 per ounce range, and investors should not rush to buy the dip. From a medium-term perspective, the upward trend for gold remains fundamentally intact. The sharp correction has not altered the underlying supportive factors, including the sustained weakness of the US dollar, declining global confidence in US Treasury bonds and dollar-denominated assets, and the ongoing global trend of lower interest rates, all of which continue to underpin gold prices. Once the market stabilizes, gold ETFs, which track gold prices, represent a more stable choice compared to gold mining stocks.