Legal basis: Regulations on the Administration of Gold and Silver in People's Republic of China (PRC) (201.1.8 Decision of the State Council on Abolishing and Amending Some Administrative Regulations).
Article 12 Individuals selling gold and silver must sell them to the People's Bank of China.
Article 19 Units applying for dealing in (including processing and selling) gold and silver products, chemical products containing gold and silver, and recovering gold and silver from waste residue, waste liquid and waste containing gold and silver must be examined and approved by the People's Bank of China and relevant competent authorities in accordance with relevant state regulations and examination and approval procedures, and registered with the administrative department for industry and commerce before starting business.
Article 20 Business units must operate in accordance with the approved business scope of gold and silver, and may not change the business scope without authorization, and may not deduct, misappropriate or purchase gold and silver in the course of operation.
Article 23 Individual silversmiths in frontier minority areas and coastal areas where the relatives of overseas Chinese are concentrated may, with the approval of the People's Bank of China at or above the county level and the administrative department for industry and commerce, engage in the business of processing and repairing gold and silver products on behalf of customers, but may not purchase or sell gold and silver products.