# Inventory Risk

The Gilded Trap: Lao Pu Gold and the High Cost of Defying Market Gravity

Lao Pu Gold, a pioneer in China’s high-end 'heritage gold' market, has lost over 120 billion HKD in market value following a disastrous strategy of aggressive inventory stockpiling without financial hedging. The company's refusal to mitigate commodity risk has left it vulnerable to falling gold prices and cooling consumer demand, forcing a major valuation reset.