(MENAFN - Arab News) Leading gold traders and jewelers have decided to take strict measures against those involved in selling fake gold and jewelry.
In an emergency meeting, they took a number of decisions aimed at curbing the sale of low quality gold and jewels in the market, Al-Eqtisadiah business daily reported.
Jameel Farsi, a senior gold trader in Jeddah, told the newspaper that an agreement banning the exchange of damaged gold jewelry among wholesalers and factory owners without testing it or receiving payment with pure gold will be implemented effective from Nov. 26 (Muharram 1, 1433).
"The decision taken at the emergency meeting is aimed at maintaining the proper standard of gold and preventing transactions of low quality or fake gold in the market. Those who refuse to join the agreement will be subjected to regular inspections by concerned authorities to ensure the quality of their products," he said.
The meeting was convened after several pieces of jewelry on display at some gold shops did not meet required quality standards.
Veteran gold traders in the Kingdom told the newspaper that there are some foreign workers engaged in manufacturing imitation gold. They manufacture the counterfeit goods at some primitive factories in residential districts or import them from outside the Kingdom. They then sell them in the local market.
Some of them cheat their customers after convincing them that it is pure gold, the traders pointed out.
Muhammad Azouz, deputy head of the national committee for precious metals at the Council of Saudi Chambers of Commerce and Industry, said the emergency meeting decided to enforce strict regulations to ensure the quality and standard of gold, especially in the wake of the Haj season.
"The meeting was convened following reports of large scale sales of fake gold, especially by bag vendors, in the local market. It was found that ornaments made of copper and coated with gold, were being sold widely by these vendors," he said, while reiterating that the reputation of Saudi gold shall be maintained at any cost.
Muhammad Azouz said the meeting decided to notify all gold traders in the Kingdom to sign the agreement before the end of the current Hijrah year.
There was also another decision to inform the Ministry of Commerce and Industry about the agreement reached by gold traders with regard to maintaining quality and standard of gold and prevent the sale of fake or low quality products in the market.