Gold loses lustre
Manama : The gold and silver merchants in the Kingdom are sore over the sudden hike in precious metal hallmarking and analysis charges, dampening consumer sentiment.
According to precious metal traders, the hallmarking charges for one gram of gold was only 30 fils per gram prior to the hike but with the new revised system gold merchants have to shell out 1BD per piece for local items and 1.5BD for imported items for hallmarking.
Analysis charges for determining the purity of precious metals have also been increased in the revised fee structure which earlier were included in the hallmarking fee.
The hike, implemented without informing the Board of Pearl, Gold, and Jewellery sector committee, functioning under the Bahrain Chamber of Commerce and Industry, has dampened the consumer sentiment, affecting gold and silver sales in the Kingdom, according to traders.
Similar is the case with silver and platinum. The hallmarking service (traditional laser hallmarking) for silver (local) is 0.200 BD per item and silver (imported) is 0.300BD whereas the charges for platinum (local) is 1BD per item and platinum (imported) is 1.500 BD per item.
According to gold merchants, there was a 40 per cent drop in the sales of gold last year and the increased hallmarking and analysing charges have adversely affected the sales prospects of precious metals in the Kingdom. “The increased fees will be a burden on us. We invest a lot of time to get our parcels to be hallmarked,” said Changappa Prasanth, Manager of Chemmanur Jewellery.
Jewellers affected
“Most of our customers choose to buy rings, pendants, earrings and bangles with an average weight of 2 to 5 grams. The revised fee structure for hallmarking has affected the buying capacity of our customers,” said Changappa Prasanth, Manager of Chemmanur Jewellery.
“Earlier, a merchants had to pay approximately 300 BD for 10KG of gold to be hallmarked, which included rings, pendants, and bangles. But now, as the fees have increased, they have to pay close to 1000BD, excluding the analysis fees,” he added.
“We appreciate the efforts by the ministry and department. We also appreciate the laboratory for their continuous efforts to make the process of hallmarking simple and effective. But, as a committee for Pearl, Gold and Jewellery Sector Committee, they should have at least given prior notification while scrapping the old system,” said Deema Rasool Al Haddad, Board Member of Pearl, Gold and Jewellery Sector Committee said.
“The Assay office is one of the best in GCC and is at par with International standards. The fees hike, however, was a shock to us. Before making such an important decision, they should have consulted us,” said Muhamed Hussain Mualim, Vice Chairman, of Pearl, Gold and Jewellery Sector Committee and Treasurer, GCC Gold Jewellers Association.
Changappa Prasanth
Deema Rasool Al Haddad
Muhamed Hussain Mualim
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