The Shenzhen Waterbei gold market has experienced significant volatility over the past 300 days, with gold prices reaching 4,000 yuan per gram in October 2025. Despite the price surge, demand for gold jewelry in China has declined for the fifth consecutive quarter, while investment in gold bars and coins has increased by 26%. This shift highlights changing consumer behavior and the challenges faced by traders. Traders like Yu Fang from Jinsen Jewelry report shrinking profits due to rising upstream costs and intense price competition, even as gold prices rise. Speculative activities, such as online gold betting and leveraged trading, have also increased, leading to regulatory warnings. In response to these challenges, many traders are diversifying into silver and other precious metals, although some, like veteran trader Zhao姐, remain optimistic about gold's long-term value.