Dealers: The process is subject to the agreement of the two parties .. and prices are linked to multiple factors

Dealers: Gold shops exaggerate in reducing the price of buying "used" .. There are no clear criteria

21 or 22 carats provide the dealer with a good deal at resale.

Photography: Ashok Verma

Dealers complained about the exaggeration of gold stores in reducing the prices of buying used gold jewelry, compared to the official gold prices announced on the market screens, pointing to differences ranging between 13 and 18 dirhams per gram.

They explained to "Emirates Today" that these stores also deduct the entire "value of workmanship", which is considered an exploitation of some dealers' need for financial liquidity, pointing out that there are no clear criteria related to the purchase of gold used by sales outlets.

In turn, merchants said that the purchase of used gold is subject to an agreement between the two parties, and it is also dependent on the stores collecting a suitable profit rate for those artifacts that lose a percentage of their weight upon recycling, pointing to several factors that determine that percentage, related to the quality of the gold jewelry itself, and the market conditions at the time of purchase , The desire of each store to purchase, as well as the source of the gold itself.

Customer complaints

In detail, the dealer, Sami Ismail, said that gold shops exaggerated in reducing the prices of buying used gold from dealers, compared to the prices announced on the screens of the official markets, with a difference between 13 and 15 dirhams per gram.

He added that the gold shops also deduct the "value of workmanship" in full, which is the amount that is paid when buying gold for the first time, and it is calculated from the total value in the invoice, indicating that this reduces the resale value to dealers, in exchange for higher profitability for gold shops.

The dealer, Tamer Abdulaziz, agreed that there are gold shops that are taking advantage of the dealers ’demand to sell what they have of used gold to pay financial obligations related to the beginning of the school year, and exaggerate in reducing the purchase price.

He said: “I am not against the principle that gold shops get a profit by deducting the full value of workmanship, and reducing the price of a gram of gold compared to the announced official purchase price, provided that there is no exaggeration in that, as it is not reasonable to deduct 18 dirhams per gram of gold when returning Selling by the consumer. ”

In the same context, the dealer, Wael Wajih, said that he had to accept the reduction of the gold store, the price of the gram, by about 17 dirhams compared to the official announced price, pointing out that there are no clear criteria related to the purchase of used gold, as the policies of the sales outlets differ in this.

He pointed out that there are stores that get high profit margins by exaggerating the price of buying used gold.

Privacy Policy

In addition, Yasser Al-Yafei, the sales official at Al-Iman Jewelry store, said that each store sets its own purchase policy related to buying used gold, according to competitive policies, the purpose of purchase, and the quality of the used gold jewelry itself.

He explained that the artifacts used for a long time need a more polishing and cleaning process, and therefore they lose part of their weight, and the same is true for the artifacts that are re-melted, and therefore, the gold shop seeks profit rates to compensate for that.

Profitability ratio

For his part, the sales manager at Anan Jewelery store, Abdulaziz Al-Khatib, attributed the stores' reduction in the price of buying used gold, compared to the purchase price announced in the screens, to the desire of those stores to collect a profit rate that varies from one store to another, and is determined according to the different gold artifacts offered, and the circumstances. The marketability of the time of purchase, the supply in the market, the desire of each store to buy, as well as the source of the gold itself, as the gold artifacts sourced from the state are more in demand compared to the artifacts sourced from some Asian countries.

Search policy

As for the sales manager of the "Al-Nakheel Jewelery" store, Samir Ali, he mentioned that the used gold imposes on him different profit rates by deducting the value of the workmanship in full, in addition to reducing the purchase price of a gram of gold compared to the official purchase price, in order to compensate for the expected decrease in the weight of the gold jewelry when smelting, Or polish it for resale again.

He pointed out that the exaggeration in reducing the value of a gram of used gold may be in certain stores, and therefore, the dealer can avoid it by searching for gold shops that offer reasonable prices.

No specific criteria

In turn, the sales manager at the Jewelery Al-Sarraf store, Abdullah Muhammad Al-Tohami, said that the prices for buying used gold differ from one store to another, and that there are no specific criteria, as they are subject to the agreement between the two parties, and the supply and demand in the market, and therefore, the stores determine The percentage of its profit by deducting the "value of workmanship" and reducing the purchase price of a gram of used gold.

Dubai Economy: commercial operations

The Dubai Economy stated, in statements to her during the past period, that under the Consumer Protection Law, persons wishing to sell gold and jewelry are not considered consumers, and the merchant has the right to set requirements for the process of buying gold from them.

She explained that these operations fall within the framework of organized commercial operations with certain conditions to be agreed upon between the two parties.

The "Gold Group" advises "comparison" and "negotiation" to conclude a successful deal

The Dubai Gold and Jewelery Group considered "preference" and "negotiation" as essential in completing a successful sale of used gold jewelry.

The group provided advice to consumers when selling used artifacts.

The Chairman of the Gold and Jewelery Group in Dubai, Tawheed Abdullah, said that the markets witnessed during the past period a great deal of activity in selling dealers of used gold artifacts, with the aim of obtaining financial liquidity, with the support of the successive and large increases in gold prices since the beginning of the Corona pandemic », Compared to last year.

Tips for selling

He added that selling used gold to stores is subject to the agreement between the two parties, and the policy of supply and demand, but there are certain criteria that it is important for dealers to follow to complete suitable selling deals for them, which focus on the need to monitor purchase offers at multiple stores, and search for offers that best fit the purchase price, in addition to To choosing the appropriate timing for selling used artifacts, represented in times of price hikes that allow reasonable prices for dealers.

Abdullah stressed the need for the dealer, when selling used gold jewelry, to focus on following the policy of negotiating with the stores, until he arrives at a suitable offer, considering the trade-off and negotiation as essential in completing a successful sale of used artifacts.

He continued: “One of the important criteria that must be paid attention to is that if the dealer has prior plans when buying new artifacts, that he will sell them later, he should focus on buying gold artifacts with a lower industrial value and without (cloves), as it is preferable to be of 21 gauge or 22 carats, so he gets a good deal at sale. ”

Right to the shops

Abdullah stressed that the stores have the right to obtain appropriate profits when buying used gold jewelry, especially as it reduces its weight when smelting, in addition to the cost of smelting itself in factories, which pushes traders to reduce the price of buying a gram of gold, compared to the prices on official screens.

He explained that it is accepted that the value of the gold gram reduction ranges between five and 10 dirhams, according to the competitive policies of each store, and in the event that the value increases on that, it is an exaggeration from the store in collecting profits, and therefore the customer must look for a store that offers him a better offer.

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