Like other industries, the gold industry chain can also be divided into upper middle and lower reaches. Its industrial chain also shows typical smile curve characteristics. Profits are mainly concentrated in upstream exploration and mining and downstream jewelry, and the bargaining power of midstream smelting and processing is poor.

The upstream industry has the highest concentration, because the exploration and extraction of gold resources is limited by mineral resources, entry qualifications, and investment scale, but upstream profits are also the highest. Allegedly, the gross margin of gold raw material mining companies remains above 45%. If an enterprise wants to mine gold, it must obtain at least two certificates, an exploration certificate and a mining license. The midstream is the gold smelting and processing sector. The industry concentration and profit margin are the lowest, mainly labor-intensive small and medium-sized enterprises. Listed companies such as China Gold disclosed that the processing fee for gold products is 2-30 yuan/gram, which is mainly affected by the complexity of the process. Downstream involves terminal consumption of gold. Gold jewelry and jewelry are mainly gold stores such as Lao Fengxiang, Laomiao Gold, Zhou Shengsheng, and Zhou Daifu, while sales of gold coins and gold bars are concentrated in major commercial banks.