Sherif Zaki, chairman of “Jolie Gold” for Manufacturing Gold and Jewelry, said that movement of manufacturing of gold jewelry has dwindled during the recent period due to a shortage at crude gold.
He added that more than one factor contributed to reduce supply of crude gold such as a decline in sales of gold by citizens.
People also keep gold waiting for more price hikes.
Zaki went on to say that the local markets witness a rise in demand for alloys and gold pounds so manufacturers head for them either.
He explained that lower fees of manufacturing of both pounds and alloys pose a competitive advantage compared to gold jewelry.
But as demand for alloys and pounds increased, manufacturing fees rose also, meanwhile, jewelry gold include values of decoration and saving in contradiction with alloys and pounds which include the value of saving only.
Zaki revealed that the decision of suspending of imports of gold was among reasons that caused rising in prices of gold owing to the shortage in supply along with disability of companies to respond to demand in the local markets.
He continued to say that the state should facilitate importing of crude gold and exporting jewelry until prices stabilize as well as opening new markets to the Egyptian companies in the case of retreat of citizens’ demand for gold.
Translated by Ahmed Moamar
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