Legal analysis: illegal. It is illegal to recycle gold privately. Gold and silver can only be recycled through institutions designated by the People's Bank of China. According to the regulations on the purchase of gold and silver in China, the purchase of gold and silver is handled by the People's Bank of China. No unit or individual may purchase gold and silver except with the permission or entrustment of the People's Bank of China.

Legal basis: Regulations of People's Republic of China (PRC) on the Administration of Gold and Silver.

Article 12 Individuals selling gold and silver must sell them to the People's Bank of China.

Article 22 Entrusting or consignment shops shall not purchase or consign gold and silver products and gold and silver equipment. Jewelry stores can buy jewelry inlaid with gold and silver for export, but they are not allowed to buy or sell gold and silver products and equipment. Gold and silver products are purchased by the People's Bank of China for export.