As demand for gold increases as a means of preserving wealth and achieving investment gains, experts are presenting a set of important guidelines to help consumers avoid fraud and ensure the purchase of genuine gold jewelry. These recommendations come amid ongoing regulatory oversight of the gold and jewelry market, with the latest inspection campaign demonstrating the authorities’ ability to uncover violations.
During the campaign, approximately 2 kilograms of counterfeit gold jewelry were seized, along with 4 tonnes of silver bars and silver jewelry that did not meet official specifications, in addition to tools used to forge official assay hallmarks.
These seizures confirm that some violators attempt to exploit consumers by offering non-genuine or substandard jewelry, which can lead to direct financial losses. Accordingly, experts outline the most important tips to follow when buying gold.
Important tips for consumers when buying gold
In light of the recent campaign, here is a comprehensive set of guidelines to ensure a safe purchase and avoid fraud:
Deal with reputable merchants
Choose a jeweler with a strong reputation or one recommended by family and friends.
Try to deal with stores that have a clear track record or official branches, as this reduces the risk of fraud.
Monitor prices regularly
Gold prices change throughout the day based on global markets, the US dollar, and local supply and demand.
Knowing the approximate price before visiting a store helps avoid surprises.
Use trusted apps and websites
Follow gold prices through specialized mobile apps, official social media pages of gold companies, or reputable economic news websites.
Avoid relying on scattered advertisements or unverified information.
Be wary of exaggerated price differences
Major gold companies such as Lazurde, Egypt Gold, or Damas generally adhere to official pricing.
Large price discrepancies are often unjustified and should raise suspicion.
Pay attention to workmanship (making charges)
Manufacturing fees vary from one store to another and should be clarified in advance to avoid overpaying.
Some stores charge per gram, while others base fees on design complexity—confirm the method before purchasing.
Check the hallmark
The hallmark guarantees the purity and karat. Do not buy unhallmarked jewelry or items with unclear marks.
You can personally verify the stamped number, such as 21 or 875 for 21-karat gold, and 18 or 750 for 18-karat gold.
Be cautious with stones and small gems
Some companies do not factor in the value of stones when buying back jewelry, so limit purchases that contain many small stones.
Verify the weight yourself
Do not rely solely on the seller’s estimate. Ensure the jewelry is weighed before payment.
It is preferable to use a precise scale or request weighing in front of you at the store.
Know the final price accurately
The total price includes:
Price per gram + workmanship fee + hallmarking fee + value-added tax × number of grams.
Example:
If the price per gram is EGP 6,600, workmanship is EGP 300, VAT is EGP 12, and the item weighs 3 grams:
(6,600 + 300 + 12) × 3 = EGP 20,736
Obtain an official invoice
Always request an official tax invoice containing full details of the purchased items.
Check that the invoice information matches the jewelry before leaving the store.
Confirm the source of the gold
It is preferable to buy from companies or dealers that provide guarantees regarding the source of the gold, especially for bars or large items, to ensure they are legally imported or locally produced.
Beware of tempting offers or large discounts
Offers that appear “cheaper than the market” are often associated with counterfeit or substandard products.
Genuine gold is rarely sold at prices significantly below official rates without a clear reason.
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