General Division of Gold and Jewelry Denies Existence of a “Resale Tax” on Gold Jewelry

The General Division of Gold and Jewelry has issued an official statement in response to recent claims about the existence of a so-called “resale tax” on gold jewelry. The Division stressed that no legal text or official decree supports such a tax and that the percentages being circulated, ranging between 1% and 3%, are inaccurate.

Gold Pricing Similar to Currencies

According to the Division, gold pricing follows mechanisms similar to foreign currency exchange rates at banks, where there is a selling price and a buying price. The difference between the two represents the trader’s profit margin for providing the service. Prices also change continuously in line with global market fluctuations and the local exchange rate of the U.S. dollar.

The “Hedging Margin” Is Not a Tax

The Division clarified that the amount deducted when purchasing used gold is not a tax, but rather a “hedging margin” set by the trader depending on market conditions. This serves to reduce risks from price volatility and to cover costs related to melting and remanufacturing old jewelry.

It further explained that this margin is not fixed, varies from one trader to another, and typically rises in times of sharp price fluctuations while decreasing during periods of relative market stability.

No Such Thing as a “Resale Tax”

The Division reiterated that there is no such thing as a resale tax on gold jewelry, emphasizing that any deduction beyond the spread between buying and selling prices—or the hedging margin estimated by the trader—is not legally valid.

It added that resale transactions are governed by supply and demand, giving consumers the freedom to evaluate the prices offered to them.

Recommendations for Consumers and Traders

The Division urged consumers to compare prices across different traders and to carefully calculate the weight and purity of their jewelry before finalizing any sale to safeguard their rights.

It also called on traders to act with accuracy and transparency when dealing with clients and to train their staff on conducting these calculations correctly. The Division stressed that “there is no tax without a legal text,” highlighting that transparency is essential to building trust and maintaining market stability.