2023-04-29 13:15:00
04:15 PM
Saturday, April 29, 2023
I wrote – Dina Khaled:
Gold prices witnessed a significant increase during the past days, as it recorded its highest level in history in the local market, with the price of a gram of 21 karat gold reaching 2800 pounds, before returning to decline, recording 2650 pounds today.
What is happening in the gold market in recent days raises many questions, one of which is whether gold shops are making gains in light of the huge rise in gold prices?
Club Naguib, Secretary General of the Gold Division, formerly at the Cairo Chamber of Commerce, answers, saying that in light of the continuous rise in gold prices in the local market, gold traders are exposed to great risks that may make the merchant fall into a loss at times.
Naguib explained that when the merchant sells gold at a high price, he buys at a high price, and sometimes he buys at a higher price than the price at which he sold it.
Naguib added that the merchant’s capital is gold, not money, so his capital must be preserved, and he must not dispose of and sell from the capital without obtaining new quantities of gold.
Hani Milad, head of the gold division at the Cairo Chamber of Commerce, agreed with Masrawy, saying: “Gold merchants do not benefit at all from the large rises in gold prices.”
Milad added that these increases may cause losses to traders as a result of the price difference between buying and selling.
Milad mentioned that, for example, a gram of gold can be sold at 2700 pounds, and before the buyer leaves the store, the price of a gram increases to 2750 pounds, so the merchant loses when buying new goods.
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