Stores charge high fees on imported bullion

Consumers said that gold and jewelry stores recently imposed exaggeratedly high fees on types of imported gold bullion, especially types of Swiss origin. They explained to “Emirates Today” that the fees reached about 500 dirhams per piece, compared to previous fees that ranged between 150 and 250 dirhams, pointing out that the stores are taking advantage of the increased demand and imposing price increases on the bullion, regardless of the weight, and even stores imposed An amount of 500 dirhams on a gold bar weighing only one gram.

In turn, gold traders attributed these price increases to the current limited availability of these bullion in the market, as well as the high demand for these types of bullion.

Charge fees

In detail, consumer Mahmoud Emad said that he was surprised when purchasing a gold bullion, that there were stores that imposed high fees on types of imported bullion, especially of Swiss origin, stressing that the fees reached 500 dirhams on a gold bullion weighing only five grams.

Consumer Dina Nasser agreed on the issue of imposing fees, saying that “several stores in the market impose exaggerated fees on imported bullion, regardless of the weight of the bullion, and may reach 500 dirhams per piece, although the fees previously ranged between 150 and 250 dirhams, according to the weight of the bullion.”

In the same context, consumer Ahmed Adel saw that gold stores are taking advantage of the increase in demand for bullion during the recent period, and have begun to impose exaggerated fees, which greatly increases the cost of purchase, confirming that there are stores that imposed a fee of 500 dirhams on an alloy of Swiss origin weighing only one gram.

As for consumer Zeina Ammar, she told “Emirates Today” that she was surprised by the large increases imposed by some gold stores during the recent period on types of imported bullion, especially of Swiss origin, noting that these fees raise the cost of purchasing bullion for consumers, even though the bullion is supposed to be without manufacturing fees or even a tax.

Supply and demand

In addition, gold trader Dilip Patni told Emirates Today: “Some gold stores have increased fees on bullion according to supply and demand policies in the markets, as types of bullion, especially Swiss ones, are in high demand, with their availability in the markets currently limited, as a result of not receiving some imported orders, which makes them not available in large quantities at sales outlets.”

For his part, gold trader, Rikesh Dhanak, agreed with his counterpart Patni that some stores imposed high fees on types of imported bullion, due to the lack of availability of these bullion in the markets during the current period, and the increased demand from consumers for them.

He explained: “Bullions are sold without manufacturing, but stores collect varying fees for profit, and in an estimated manner, such as packaging and certificate fees for those bullion, which makes the fees return to the store’s discretion, and vary from one store to another.”

As for the gold trader, Reggie Ajay, he said, “The fees imposed on bullion in some stores during the current period are focused on types of imported bullion only, but bullion of local origin is available with the same previous fees, which range between 100 and 200 dirhams, which makes there different alternatives for consumers.” Ajay attributed the fees imposed on bullion to the lack of availability of this type of bullion, compared to the high rates of demand for it, which many dealers prefer due to To the popularity of those bullion brands in their countries.

Competitive markets

In the same context, the Chairman of the Board of Directors of the Gold and Jewelery Group in Dubai, Tawhid Abdullah, said, “The local markets are characterized by high competition between stores and the availability of different types of products, which provides different alternatives and options for consumers.”

Abdullah stressed the importance of consumers paying attention to differentiation and price comparison between stores in the markets before purchasing, to obtain the best price, with the necessity of purchasing from sales outlets and obtaining official invoices for the purchase.

Abdullah pointed out that the bullion is not subject to value-added tax duties, as it is 24-karat gold.

• Stores take advantage of the increased demand, and place price increases on bullion, regardless of weight.