The purchase levels of 21-karat gold accessories increased in Kafr El-Sheikh markets by 1 to 4 grams.
Abdel Aal Selema, Kafr El Sheikh’s Chamber of Commerce’s gold pision deputy head, said that the majority of the governorate residents prefer buying the common simple low-priced gold products. The percentage of purchasing this kind of accessories is estimated at 70%.
On the other hand, only 30% of the gold accessories purchasing market capacity goes to high-quality products. Only 15% of the residents prefer selecting pieces with the best quality regardless of their prices.
Selema explained that Kafr El Sheikh women used to wear a bracelet and a necklace made from 21-karat gold.
In the same context, the official revealed that residents moved to buy gold as an investment, in addition, they still follow several inherited rules during the process of buying and selling gold. For example, some still believe that 18-karat costs the seller more losses, in addition, 18-karat manufactured pieces colour fades over time due to the wrong processing of copper, and silver.
He continued that the issue of 18-karat manufactured pieces colour’s issue is now solved by modern manufacturing technologies.
The deputy head highlighted that manufacturing 1 gram of 18-karat costs are higher than the expenses spent for manufacturing 1 gram of 21-karat.
Regarding the rise of gold bars and pounds sales in Egypt recently, Selema reflected that residents resort to them as an investment. So, many producers were encouraged to release more of those products.
He added that low-manufacturing costs and the high percentage of recovering some of the manufacturing expanses attracted more buyers.
On the other hand, the deputy head advised citizens to be more aware during purchasing used gold products, especially those displayed on social media platforms.
Next, Selema explained the reasons behind purchasing exported gold products in local markets such as the rise of manufacturing costs that estimated between EGP 150, 250. Another reason listed by him is the improvement of locally manufactured products with less manufactured costs.
Therefore, he called for the necessity of tightening the process of market monitoring to control the presence of unauthorized products and to secure the traders and customers from any deception.
The official continued that gold sales in the governorate are based on the official price of gold in local markers, in addition to the costs of manufacturing, VAT, and stamping costs.
In the same context, he asserted that stores have no right to receive 2% of the product’s price as tax whether in the process of selling or buying.
Finally, Selema explained that the expanses of gold manufacturing costs are various due to the differences of stores rent costs which differ from one governorate to another, alongside the costs producers pay such as salaries.
Contributed by: Rana Atef
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