Gold Division : Net Gold Weight Sales Could Transform Egypt's Jewelry Market

Eng. Lotfy Moneeb, Vice Chairman of the General Division of Gold and Jewelry at the Federation of Egyptian Chambers of Commerce, said that selling gold jewelry based solely on its net gold weight, while pricing the decorative stones separately from the precious metal, represents a new approach that could help resolve one of the Egyptian market's longest-running challenges related to the resale of stone-set jewelry.

Moneeb said the concept is positive in principle because consumers pay only for the actual gold content of the jewelry they purchase, without being charged for decorative stones that may become a source of disputes when the piece is resold. He noted, however, that the implementation details—particularly how the value of the stones will be calculated or reflected in the manufacturing charge—still need to be clearly defined.

He explained that the internationally accepted practice does not involve buying back jewelry based on the weight of its decorative stones. However, several years ago, one company introduced a stone buyback policy as a competitive advantage when entering the Egyptian market, prompting many other manufacturers to follow the same approach until it became common practice across the industry.

According to Moneeb, while the policy gained widespread acceptance, it also created practical challenges over time, particularly when some companies ceased operations or exited the market, leaving consumers and retailers facing disputes over unfulfilled stone buyback commitments.

He pointed out that the new model is fundamentally different because it is based on selling jewelry according to its net gold weight from the outset, without linking the transaction to any future commitment to repurchase the stones. This, he said, significantly reduces potential risks for both consumers and retailers.

Moneeb added that the approach also relieves retailers of liabilities arising from manufacturers that suspend operations or fail to honor previous buyback commitments. A transparent pricing structure from the moment of purchase, he said, helps strengthen confidence across the market.

He described the initiative as a new competitive model that could reshape the marketing of stone-set jewelry in Egypt if it proves successful, thanks to its clearer and more transparent pricing mechanism.

He stressed that companies selling jewelry based solely on its net gold content do not need to make future promises regarding stone buybacks, since customers pay only for the value of the gold itself. This creates a more straightforward commercial relationship between both parties.

Moneeb concluded that the success of the model will depend on the clarity of its implementation, but described it as a positive step that deserves close attention and could pave the way for a new phase in Egypt's gold jewelry market.