Consumers have reported that gold and jewelry stores have finally started imposing excessively high fees on certain types of imported gold bars, particularly those of Swiss origin. They explained to 'Emirates Today' that the fees have reached around 500 dirhams per piece, compared to previous fees that ranged from 150 to 250 dirhams. They noted that stores are capitalizing on increased demand and imposing price hikes on bars, regardless of weight. Some stores have even charged 500 dirhams for a gold bar weighing just one gram. In turn, gold traders attribute these price increases to the current scarcity of these bars in the market, along with a surge in demand for such types of bars. In detail, consumer Mahmoud Imad stated that he was surprised when buying a gold bar, as some stores impose high fees on certain types of imported bars, especially Swiss-made ones. He confirmed that the fees reached 500 dirhams for a five-gram gold bar. Consumer Dina Nasir agreed on the issue of fees, saying, 'Several stores in the market impose inflated fees on imported bars, regardless of their weight, and they can reach 500 dirhams per piece, whereas previously fees ranged from 150 to 250 dirhams depending on the bar's weight.' In the same context, consumer Ahmed Adel noted that gold stores are taking advantage of the increased demand for bars recently and have started imposing inflated fees, which significantly increases the cost of purchase. He confirmed that some stores charged a fee of 500 dirhams for a Swiss-made bar weighing one gram. Consumer Zeinamar told 'Emirates Today' that she was surprised by the large increases that some gold stores have recently imposed on certain types of imported bars, especially Swiss-made ones. She pointed out that these fees raise the cost of purchasing bars for consumers, even though bars are supposed to be without manufacturing fees or even tax. Supply and Demand Meanwhile, gold trader Dilip Patni told 'Emirates Today': 'Some gold stores have increased fees on bars according to supply and demand policies in the markets, as certain types of bars, especially Swiss ones, are seeing high demand, while their availability is currently limited due to some import orders not being received, making them unavailable in large quantities at retail outlets.' On the other hand, gold trader Rikesh Dahnak agreed with his counterpart Patni that some stores are charging high fees on certain types of imported bars, attributing this to the limited availability of these bars in the market currently and increased consumer demand. He explained: 'Bars are sold without manufacturing fees, but stores charge varying fees for profit, and these can be estimated as fees for packaging and certificates for those bars, making the fees dependent on the store's assessment and varying from one store to another.' Gold trader Reggie Ajay said, 'The fees imposed on bars in some stores during the current period are concentrated only on certain types of imported bars, but locally made bars are available at the same previous fees, ranging from 100 to 200 dirhams, which gives consumers different alternatives.' Ajay attributed the fees on bars to the limited availability of this type of bar compared to the high demand for them, which many buyers prefer due to the fame of those bar brands in their countries. Market Competitiveness In the same context, Chairman of the Board of Directors of the Dubai Gold and Jewelry Group, Tuhid Abdullah, said: 'Local markets are characterized by high competitiveness among stores and the availability of various types of products, which provides consumers with different alternatives and options.' Abdullah emphasized the importance of consumers comparing and contrasting prices among stores in the market before purchasing to get the best price, as well as the necessity of buying from retail outlets and obtaining official purchase invoices. Abdullah warned that bars are not subject to Value Added Tax as they are 24-karat gold.
