(Yicai) Feb. 17 -- Several Chinese banks have started gold repurchase programs amid plummeting prices of the precious metal and increased liquidation demand from investors.

This month, nearly 10 banks, including the Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Postal Savings Bank, and Ping An Bank, have launched or promoted gold repurchase businesses, based on Yicai's incomplete statistics.

Some investors told Yicai that banks informed them they could sell their gold products to designated bank outlets, but appointments need to be made online with at least a week's notice.

Gold prices have been volatile this year. After rising for seven straight weeks and hitting a record high, spot gold and COMEX gold futures both fell below the USD2,900 per ounce mark last week. On Feb. 14, COMEX gold futures dropped 1.76 percent, the biggest one-day decline since the latest rally, and spot gold in London fell by 1.66 percent.

The industry is divided on the trend. Some institutions forecast large-scale price fluctuations to come while others believe that the bull market of the safe haven asset will continue.

A staff member of a large state-owned bank in Shenzhen told Yicai that investors need to book online to resell gold to the lender. Appointments have so far been scheduled until the end of March but the bank will inform its customers if the situation changes.

Lenders could use some more stock since some banks have sold out gold bars during the market rally. For example, ICBC's Ruyi gold bars were out of stock as of Feb. 15, and at present, the Zhumeng China gold bar products in 20 grams and 100 grams are sold out. However, investors can still buy 50-gram and 200-gram products.

Editor: Emmi Laine