The division clarified that converting gold jewelry to bars and coins would diminish its value-added.
Milad clarified that the discounts would be on the manufacturing of gold jewelry - File Photo
Hany Milad, the head of the Jewelry and Goldsmithing Division, announced an initiative to collaborate with factories, traders, and retailers to offer significant discounts on gold jewelry in response to consumer demand.
Speaking at a press conference, Milad clarified that the discounts would be on the manufacturing of gold jewelry, citing a large inventory of gold jewelry in stock due to the popularity of gold bars and coins.
Milad emphasized that converting gold jewelry to bars and coins would diminish its value-added, as they are jewelers and not raw material traders. He further noted that they do not trade in currency but in gold, which can be classified as a commodity.
While they are not a pricing agency, they operate in a market governed by the dollar exchange rate, supply and demand forces, and global prices.
Milad highlighted that supply forces have become the primary indicator and the actual controller of prices during the current period.
The division is attempting to find ways to help reduce pressure on demand and increase supply.
The collaboration between the factories, traders, and retailers aims to cater to consumer needs by offering discounts on gold jewelry, which is a positive development for the industry.
In a related development, the World Gold Council reported that gold demand in the first quarter of 2023 increased by 7% year-over-year, buoyed by strong investment and jewelry demand in China and India.
