Why has the rise in gold prices led to the bankruptcy of gold shops?

Here is the translated content in the voice of an indie hacker/entrepreneur.

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**The Butcher’s Margin**

The guy running the pork stall at the market told me: *“I make a fixed 50 cents per pound, no matter what. If pork is cheap, I still make 50 cents. If it’s expensive, I still make 50 cents. But when it’s cheap, I sell more, so I make more. When it’s expensive, I sell less, so I actually lose out.”*

**Gold vs. Pork: The Same Trap**

A fancy gold shop works the same way. Your costs (rent, scrap, fees) don’t affect your profit margin — you’re always just earning the spread. But they *do* affect your sales volume.

When costs go up, your profit can’t shrink (you’d starve), so your selling price rises. Fewer people show up. Your actual profit drops.

And if you’re selling financial products linked to gold prices? When gold gets too hot, you’ll get a run on the bank. That’s why gold shops might actually go bankrupt *ahead* of the gold price spike.