Some jewellers misstate purity of gold, overcharge buyers: Case poll
By Tessa Wong 2 December 2008
Hunting for some gold jewellery this Christmas? Beware: That necklace or pendant you are eyeing may not be as pure as you think.
A recent survey of 30 goldsmiths by the Consumers Association of Singapore (Case) found that five were selling gold jewellery less pure than claimed.
The surveyors randomly selected jewellers around the island, and at each shop, they bought a standard 916 gold article, which should contain at least 91.6 per cent gold.
Most of the five failed Singapore Assay Office tests by a few decimal points. The worst score was 85.94 per cent.
Moreover, about eight jewellers overcharged customers. They used tactics such as weighing the item with the price tag to inflate the final price, or charging fees on payments by Nets.
Some also built the cost of gold lost during manufacture into the price, a practice abolished in 1995 by the Singapore Jewellers Association. Retailers must now charge by net weight, plus workmanship fees and tax.
Case president Yeo Guat Kwang said it conducted the survey because of recent complaints against jewellers. It had two complaints this year, compared to none last year.
The Singapore Assay Office, which tests precious metals, has also noted a trend of gold jewellery failing purity tests in the last few years - from 4.5 per cent in 2005 to 6 per cent last year. The tests are conducted for jewellers voluntarily seeking accreditation for their pieces.
The survey has put the spotlight on a minority of jewellers who ‘tarnish the strong consumer confidence in jewellers here’, said Mr. Yeo at a press conference yesterday.
In 2006, jewellery sales were estimated to be worth $1.5 billion, of which gold jewellery sales were a ‘small’ percentage, said Mr. Ho Nai Chuen, president of the Singapore Jewellers Association.
The five jewellers named by Case claimed ignorance and blamed their suppliers. ‘We just trust our manufacturers,’ said Sri Meenachi Jewellers director K. Badrinath.
The other retailers whose pieces failed Case’s purity survey are Catherine Goldsmith & Jewellery, Chan Foon Jade & Jewellery, Boon Lay Goldsmiths & Jewellers, and Teng Huat Jewellery. Case said they would be referred to Spring Singapore and the Trade and Industry Ministry for further investigation.
Retailers have a responsibility to check that their goods are of the stated quality, said Mr. Yeo. Case and the jewellers’ association are advocating that more retailers join the assay office’s certification programme.
Only 30 out of the estimated 500 jewellery outlets here are certified, said Mr. Ho.
Jewellers hesitate to sign up because of the high costs of accreditation. For example, Sri Meenachi has rolling stock of about 24,000 pieces a year, and with current charges, testing could cost it over $43,000 a year.
The jewellers’ association is in talks with the assay office to lower the fees.
But the final push may come in the form of consumers voting with their feet. Housewife Low Kwai Fong, 53, said: ‘I want to buy from a place that’s proven. I don’t want to be cheated in my investment.’
1 comment:
Not Worth its Weight in Gold
Some jewellers misstate purity of gold, overcharge buyers: Case poll
By Tessa Wong
2 December 2008
Hunting for some gold jewellery this Christmas? Beware: That necklace or pendant you are eyeing may not be as pure as you think.
A recent survey of 30 goldsmiths by the Consumers Association of Singapore (Case) found that five were selling gold jewellery less pure than claimed.
The surveyors randomly selected jewellers around the island, and at each shop, they bought a standard 916 gold article, which should contain at least 91.6 per cent gold.
Most of the five failed Singapore Assay Office tests by a few decimal points. The worst score was 85.94 per cent.
Moreover, about eight jewellers overcharged customers. They used tactics such as weighing the item with the price tag to inflate the final price, or charging fees on payments by Nets.
Some also built the cost of gold lost during manufacture into the price, a practice abolished in 1995 by the Singapore Jewellers Association. Retailers must now charge by net weight, plus workmanship fees and tax.
Case president Yeo Guat Kwang said it conducted the survey because of recent complaints against jewellers. It had two complaints this year, compared to none last year.
The Singapore Assay Office, which tests precious metals, has also noted a trend of gold jewellery failing purity tests in the last few years - from 4.5 per cent in 2005 to 6 per cent last year. The tests are conducted for jewellers voluntarily seeking accreditation for their pieces.
The survey has put the spotlight on a minority of jewellers who ‘tarnish the strong consumer confidence in jewellers here’, said Mr. Yeo at a press conference yesterday.
In 2006, jewellery sales were estimated to be worth $1.5 billion, of which gold jewellery sales were a ‘small’ percentage, said Mr. Ho Nai Chuen, president of the Singapore Jewellers Association.
The five jewellers named by Case claimed ignorance and blamed their suppliers. ‘We just trust our manufacturers,’ said Sri Meenachi Jewellers director K. Badrinath.
The other retailers whose pieces failed Case’s purity survey are Catherine Goldsmith & Jewellery, Chan Foon Jade & Jewellery, Boon Lay Goldsmiths & Jewellers, and Teng Huat Jewellery. Case said they would be referred to Spring Singapore and the Trade and Industry Ministry for further investigation.
Retailers have a responsibility to check that their goods are of the stated quality, said Mr. Yeo. Case and the jewellers’ association are advocating that more retailers join the assay office’s certification programme.
Only 30 out of the estimated 500 jewellery outlets here are certified, said Mr. Ho.
Jewellers hesitate to sign up because of the high costs of accreditation. For example, Sri Meenachi has rolling stock of about 24,000 pieces a year, and with current charges, testing could cost it over $43,000 a year.
The jewellers’ association is in talks with the assay office to lower the fees.
But the final push may come in the form of consumers voting with their feet. Housewife Low Kwai Fong, 53, said: ‘I want to buy from a place that’s proven. I don’t want to be cheated in my investment.’
Post a Comment