Some traders in the gold and jewelry sector see that spread of the unreal speculations on the fake balance of gold via mobile phone applications, harm the interests of citizens and the national economy.
They assure that this practice is an illegal business because it violates the rules that regulate trade and exposes customers to danger.
Buying gold items in any form like items or alloys is the safest method to hedge or decline the value of the currency and gaining profits.
Sadiq Marzook, the Legal Consultant of Syndicate of Merchants and Smiths of Gold and Jewelry, said the spread of the idea of speculation on fake balances through mobile phone is an exotic means to gold market because it is illegal and contradicts regulations set by the state to practice business.
He added that citizens must adopt safe ways by purchasing alloys or gold items in order to keep the value of money or gaining profits.
Marzook stressed that gold is the best method for saving and hedging at the time of crises.
He explained that speculations depend on the unreal balance of gold traded via mobile phone applications after paying premium and little dues for trading but the client doesn’t have real gold at all.
Some merchants and individuals come to those platforms because they do have sufficient money in order to get riches.
He added, that the damages of speculation appear with violent movements in prices between rising and fall, as well as the organization of illegal entities for financial speculation within the markets is not a guarantor, and leads to moral and behavioral deviations in the event of manipulation or the speculators abstaining from payment.
George Michel, Captain of Gold and Jewelry Merchants and Makers, said that the best means of safe investment for citizens is to acquire bullion and gold items of various carats, but speculation exposes their money to great risks.
He added that the tendency of some traders and manufacturers to speculate harmed the market, and continuity of these practices eliminates capital, and leads to a shortage of gold items in the markets as a result of directing funds to speculation.
He explained that speculation harms the national economy because the movement of transactions within the market represents an interconnected chain, so harming one of its links harms the whole, and the market should regulate itself automatically, by stopping dealing with every merchant who proves his involvement in speculation or directs citizens to it instead of buying.
He went on to say that some retail gold stores have recently introduced mobile applications to attract customers to speculate on fake balances harms the reputation of the gold market because the safe investment is represented in the presence of a real balance that guarantees the consumer’s right and the right of the state to collect fees and taxes.
Translated by Ahmed Moamar