Ban on gold old stamp logos
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Move to regulate precious metals market
KUWAIT CITY, Dec 17: Acting Undersecretary of the Ministry of Commerce and Industry Mohammad Al-Enezi affirmed that the ministerial decision banning the circulation of gold artifacts with old stamp logos, starting from the beginning of next year, aims to regulate the precious metals market according to legal controls that prevent any abuses in dealings, reports Al-Rai daily. Al-Enezi said, “The decision issued in 2021 had given a deadline until the end of this month, as it stipulated a ban on trading artifacts with previous stamp logos in the local market after December 31, 2022.
After this date, every artifact bearing the old stamp logo is considered used and sold on this basis.” However, he reassured the public by stressing that the jewelry and gold they own has nothing to do with the decision, as they will retain their value.
Al-Enezi explained that the decision requires shop owners not to display any work bearing the old stamp logo, as of January 1, 2023. Any artifacts bearing the old stamp can be submitted to the Ministry of Commerce and Industry to be stamped with the new stamp within 2-3 days.
In the same context, between an affirmation that “gold remains gold, whether it is stamped or not” and a warning that the old stamp will render the artifacts worthless at the beginning of 2023, opinions differed on the implementation of the Ministry of Commerce and Industry’s decision, amid appeals to suspend it and to warn those who cause an economic crisis that it will cause severe damage to the national economy and damage Kuwait’s reputation internally and externally.
In a press statement, Lawyer Nasser Al- Arbash warned of a looming crisis. He asked, “What will the fate be of the shops that work in the gold trade, starting from the beginning of next year? Will it close its doors or turn to other activities? What is the mechanism for dealing with old jewelry?” Al-Arbash said, “The time until the beginning of next year is not enough to stamp all gold artifacts with the new stamp, at a time when the old ones will be invalid”. He warned of the occurrence of a state of chaos and paralysis in the gold and gold jewelry trade in Kuwait. Al-Arbash stressed that gold dealers will be subject to a violation starting from January, and they will face serious penalties that amount to imprisonment, according to the law.
Artifacts
He said, “The market value of gold and some other artifacts is estimated at about six billion dinars, but that value is threatened with loss and could become zero. The owners of licensed shops will not have the right to sell any quantities of gold or other artifacts with the old stamp after December 31.” Al-Arbash sent a message to the Minister of Commerce and Industry Mazen Al-Nahedh, saying, “Haste in these matters will lead to chaos in the market. It is required to address the matter in order to preserve the market and the interests of merchants and the public, instead of exposing people’s interests to destruction and heavy losses.”
In this regard, informed sources indicated that the implementation of the decision will lead to banning the circulation of commodities in the local gold market, estimated at about one billion dinars. They stressed that the adoption of a new stamp for artifacts is normal, but the prohibition of trading of gold sealed with the old stamp is surprising. The sources said they consider the re-sealing of millions of pieces of gold and jewelry, in addition to its difficulty, as time consuming, leading to disruption of the business of the shops and exposing them to great losses. It is noteworthy that the decision of the Ministry of Commerce and Industry issued in 2021 came after the discovery of forgery operations as well as seals and stamps on some artifacts that are different from what was approved by the Precious Metals Department in the ministry.
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