4 price discounts imposed by the “market” when reselling “used gold”

Dealers confirmed that there is a large contrast, and the lack of clarity in the criteria for buying gold and jewelry stores for the golden artifacts used by customers, or what is known as “resale”, causing their confusion.

They explained to «Emirates Today» that gold and jewelry stores impose multiple discounts when purchasing used gold, in addition to a reduction between seven dirhams and 13 dirhams for the gram of gold, compared to its announced price in the official screens or what is known as the “screen price”.

They pointed out that some gold stores seek to increase profitability by exaggerating the reduction in the purchase of gold used from dealers who sell what they have with the high price of gold.

Gold stores determine four common discounts when purchasing used gold jewelry from customers, including: deducting the value of the work of the original purchase bill, deducting value -added tax from the original purchase price, and unloading the golden artifacts from gemstones and “lobes”, where their weight is not counted at the process “On the screen” in the markets or stores.

For their part, gold and jewelry merchants told «Emirates Today» that the process of purchasing used gold depends on market policies and the standards of agreement between dealers and merchants, as well as the quality of gold and its condition when “resale”.

They explained that the used gold is polished in different ways, and most of the time it is re -fused to new artifacts and in any case it is exposed to a decrease in its weight in different proportions, whether from multiple polishing, or when melting and forming in new jewelry.

Customer opinions

In detail, the customer Ahmed Suleiman told «Emirates Today»: “I found a great contrast in gold prices when I offered used gold jewelry among a number of stores, which caused me a state of confusion in determining the criteria for buying stores for used gold or gold (resale) stores for stores, which are supposed to be unified between stores inside the market.”

For his part, the customer Kamal Abdulaziz said: “Through my experience, some stores impose different price discounts when buying gold used from customers, which causes the loss of large sums of money, which was already paid when buying gold itself.”

He added, “The stores are supposed to have clear and announced criteria, especially since gold is one of the goods whose value is not greatly affected when it is reselling.”

In the same context, the customer Sayed Ibrahim said: “A number of stores exaggerate the number of financial discounts imposed on the customers when they resell them used gold, in order to obtain a large percentage of profits.” He pointed out that the markets are witnessing a great variation in both the prices of buying gold used by stores, and the criteria for buying used gold, in a way that causes a state of confusion when the sale of used goldsmiths.

He explained that «a large number of dealers tend to resell the gold jewelry, to take advantage of the price of gold prices and obtain financial liquidity».

As for the customer, Muhammad Ali, he expressed his surprise at the mechanism of dealing with some gold stores, pointing out that some stores impose large discounts on used gold when the sale, in addition to reducing the purchase price for love at different rates ranging from seven dirhams and 13 dirhams, from the official “screen price”, claiming that he went used.

Store policies

In addition, the sales officer in the “Golden Gold Trade Trading” store, Abdul Karim Qassem, said that “the prices of buying used gold jewelry are determined by market policies for each store, in addition to the quality and quality of gold, and its condition when resale.”

He added to «Emirates Today»: “With regard to the stores, it is common to deduct (the value of the manufacturer) from the golden artifacts that you buy from customers, as the value of stones and (lobes) is deducted if they are within the gold piece, in addition to the value -added tax paid when buying for the first time, and sums ranging between five and 10 dirhams are deducted, according to the common and known, and that is on each gram of gold, compared to the price announced Selling screens in stores and markets, at the time of stores buying it. ”

Qasim pointed out that “the stores impose these discounts to obtain a suitable profitability that enables them to work well”, noting that “used gold is polished in different ways to be able to offer for sale again, and in most cases it is fused to new works and in all cases the gold is exposed to a decrease in weight in different proportions, whether from multiple polishing, or when melting and forming in new jewelry.”

He continued: «There are artifacts that are in good condition, and from modern models, good quality and quality, which can resell them without a great effort, especially for some of the famous brands of the artifacts, and in this case any amounts of the basic gold price value may be deducted compared to its price on the screens, with the ease of selling these products without polishing or re -melting.

Qasim stressed the importance of caring for a number of advice when considering reselling the used golden artifacts, the most important of which are: keeping the purchase bills, and preserving the status and quality of the artifacts.

Profit margin

In turn, the director of the Rikish Gold and Jewelery Trading Company, Rikish Dahkin: “It is customary in the markets that different discounts will be made when purchasing used gold, in order to find a suitable margin for profitability, different according to the estimates of each store, in relation to determining the purchase price, which in turn allows customers different opportunities for the price comparison between stores.” He added: “The criteria are clear in discounts related to stones, The lobes, and the manufacturers, but they vary according to the reduction in the price of a gram of gold compared to its price on the screens.

In the same context, the sales officer at the «Jewelery), Manji Balik, attributed the variation in the prices of buying gold used by stores to the policies of each store in determining the profit margin, and estimating the used artifacts offered by customers, and said:“ Although the product evaluation varies, it is common to deduct the value of the manufacturer, the value of lobes, and the tax. ”

“Gold Group” recommends focusing on two carats 22 or 21 carats “without cloves”

The Chairman of the Board of Directors of the Gold and Jewelery Group in Dubai, Tawhid Abdullah, told «Emirates Today» that “the purchase of gold used in the markets is determined by recognized policies, regarding the deduction of the value of the manufacturer, and (lobes) in the artifacts, while the value of the price of the price of a gram of gold is varied compared to the price announced on the screens, according to the policies of each store, and the usual ranges between seven and eight dirhams, and it may reach 10 Drags, according to store policies, and the status and quality of gold to be sold.

In response to a question about the reasons for those discounts that take place on used gold, Abdullah said: “These discounts are due to the stores compensation for the profit margin for the decline in the weight of gold at the melting process and the re -manufacturing, with the escalation of fumes that reduce weight when manufacturing, in addition to determining a profit margin, in the event of polishing and updating to re -offer in stores.”

The Chairman of the Board of Directors of the Gold and Jewelery Group in Dubai provided advice to customers, focusing on the necessity of making a price comparison between stores before selling gold, and choosing the timing of the sale when monitoring price rises appropriately.

He said: «In the event of pre -thinking about re -sale, it is preferable to focus on buying 22 or 21 carats, without lobes, to get a better price when resale.”