Prospective Grooms Eye Lower Gold Prices in Kurdistan
Posted: Thu May 30, 2013 9:32 pmERBIL, Kurdistan Region – Gold prices are down and imports to the Kurdistan Region are up. So why are prospective grooms, whose major wedding costs include gold jewelry for the bride, unhappy?
Because, as gold prices go down, jewelers keep hiking up the customary manufacturing charges, complain grooms-to-be, who say that about half the wedding costs go to buying gold alone.
“If the crafting fee keeps increasing like this, many young people like me will not be able to get married,” said Muhammad Kani, a young man from Duhok.
Bakir Aziz, whose office regulates gold sales in the autonomous enclave, said that in a free market like Kurdistan’s, goldsmiths are free to charge as much as they want for craftsmanship.
“But the manufacturing fee must be written on the receipt so that the customer can know what he is paying for. Otherwise, the customers can complain to us and we will take the necessary measures against that goldsmith,” he said.
Prospective groom Muhammad Fazil said he was happy when gold prices went down. One month ago, the 230 grams of gold demanded by the family of the bride would have cost him around $12,700, but with the new price of gold it should be about $10,966.
But, he and others complain, the higher demand for gold has been offset by the fees charged by goldsmiths.
Mukhlis, a goldsmith, said that the devaluation of the US dollar and a decline in gold prices on international markets had driven up demand for gold. “Due to the increased demand, there is less gold in the markets of United Arab Emirates (UAE) and Turkey.
“The difference in gold prices in Kurdistan Region and other countries is just in the manufacturing fee,” he said.
Goldsmiths deny they have hiked up their fees.
“The manufacturing charges vary according to the style. Sometimes the fee can be as high as $87 per 4.6 grams,” said Nahro Kamal, a goldsmith.
“The manufacturing charge is fixed, and any goldsmith who violates this will be subject to questioning,” said Abdulsalam, head of the Duhok Goldsmiths Syndicate.
He said that gold imports had gone up dramatically.
“In the first three months of this year more than 16 tons of gold was imported to the Kurdistan Region. In the month of April alone, more than eight tons was imported. This means a 50 percent increase compared to the past three months” Abdulsalam said.
Umed Ahmed, deputy head of the Erbil Goldsmiths Syndicate, said that gold buyers in Kurdistan largely fell into three categories: People who buy gold for savings, those who buy it to resell when prices rise, and young residents who are ready to marry.
Because, as gold prices go down, jewelers keep hiking up the customary manufacturing charges, complain grooms-to-be, who say that about half the wedding costs go to buying gold alone.
“If the crafting fee keeps increasing like this, many young people like me will not be able to get married,” said Muhammad Kani, a young man from Duhok.
Bakir Aziz, whose office regulates gold sales in the autonomous enclave, said that in a free market like Kurdistan’s, goldsmiths are free to charge as much as they want for craftsmanship.
“But the manufacturing fee must be written on the receipt so that the customer can know what he is paying for. Otherwise, the customers can complain to us and we will take the necessary measures against that goldsmith,” he said.
Prospective groom Muhammad Fazil said he was happy when gold prices went down. One month ago, the 230 grams of gold demanded by the family of the bride would have cost him around $12,700, but with the new price of gold it should be about $10,966.
But, he and others complain, the higher demand for gold has been offset by the fees charged by goldsmiths.
Mukhlis, a goldsmith, said that the devaluation of the US dollar and a decline in gold prices on international markets had driven up demand for gold. “Due to the increased demand, there is less gold in the markets of United Arab Emirates (UAE) and Turkey.
“The difference in gold prices in Kurdistan Region and other countries is just in the manufacturing fee,” he said.
Goldsmiths deny they have hiked up their fees.
“The manufacturing charges vary according to the style. Sometimes the fee can be as high as $87 per 4.6 grams,” said Nahro Kamal, a goldsmith.
“The manufacturing charge is fixed, and any goldsmith who violates this will be subject to questioning,” said Abdulsalam, head of the Duhok Goldsmiths Syndicate.
He said that gold imports had gone up dramatically.
“In the first three months of this year more than 16 tons of gold was imported to the Kurdistan Region. In the month of April alone, more than eight tons was imported. This means a 50 percent increase compared to the past three months” Abdulsalam said.
Umed Ahmed, deputy head of the Erbil Goldsmiths Syndicate, said that gold buyers in Kurdistan largely fell into three categories: People who buy gold for savings, those who buy it to resell when prices rise, and young residents who are ready to marry.