Egyptian gold market sees signs of crisis resolution
Since 2009, the gold jewelry market in Egypt has introduced a new solution to the "stone returns" crisis, which previously caused losses for both citizens and traders. The solution is based on dividing the weight of the jewelry set with stones into the actual gold weight and manufacturing costs, so that the customer is billed only for the net gold weight, with the stone costs clearly indicated and considered part of the manufacturing expenses. This model changes the previous practice of swapping jewelry without deducting the stone weight, where companies committed to returning the full weight, leading to losses if companies exited the market or stopped refunding returns. The new approach aims to increase transparency and build more trust in the Egyptian gold market. It marks a shift in sales practices by revealing the actual gold weight and reducing reliance on uncertain future commitments. Currently, this model is being practically implemented by companies like "Master Gold Egypt."
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