The Gold markets have lately witnessed an unexpected surge in the gold manufacturers, who have been performing purchasing operations using the “Outlet” approach.
In a step intended to create a boom in profits and reduce the quantity of the gold Jewelry inventory, the gold manufacturers have launched several outlets to sell and buyback old gold jewelry, according to the CEO of Andrea & George Gold firm George Tadros.
On this basis, customers will be offered the best rate in the market by giving maximum value for old gold pieces. Meanwhile, the gold dealers will be able to get rid of dead stocks.
The outlet approach is therefore suitable to reduce the losses due to the cracking of gold and loss of more money for overstocking, which is leading to unsold inventory.
"If gold dealers' jewelry pieces are difficult to sell, their inventory storage costs could add up," Tadros noted. “In this industry, especially in the costume jewelry trade, dead stocks may comprise pieces that had gone out of style or season. It becomes irrelevant to the market; therefore, its value declines.”
"In response to this issue, many gold dealers have offered discounts to shoppers to offload some stocks to them," he explained.
Contributed by Ahmad Emam
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