CASE starts accreditation scheme for gold jewellers

Buy gold jewellery backed by gold standard
Strict rules for stores accredited under new scheme
By Jessica Lim, Consumer Correspondent, The Straits Times, 28 Feb 2015

BUYERS of gold jewellery will soon be able to shop at accredited businesses and be sure they are getting what they pay for.

A new accreditation scheme developed by the Singapore Jewellers Association (SJA) and the Consumers Association of Singapore (CASE) requires members to abide by stringent rules.

These include having clear refund policies and defined dispute-handling procedures in place.

Gold items marked with a 916 and 999 fineness - which should contain at least 91.6 and 99.9 per cent of gold in the main body of the jewellery - must be certified by a recognised assayer.

Accredited jewellers must also weigh such items upon a customer's request and give a breakdown of the price of gold or workmanship, among other things.

This CaseTrust-SJA Accreditation scheme, which has to be renewed every four years, will cost each retailer about $7,000.

But the cost has not deterred 28 business owners, who have already signed up to have their 149 stores accredited.

These players, all SJA members, make up about a fifth of the market. There are about 700 jewellery stores selling gold in Singapore.

The long-term aim, said SJA president Ho Nai Chuen yesterday, is to help members grab more of a billion-dollar global market.

According to figures from the World Gold Council, demand for gold jewellery added US$70 billion (S$95 billion) to the global economy in 2012, and makes up nearly half of global demand for gold. Gold is popular with many buyers because it is known as a "safe-haven" metal for its ability to retain or appreciate in value over time.

"Ultimately, we hope the scheme will help to raise the standard of the jewellery industry here. Consumers will feel more assured that they are getting what they paid for," Mr Ho said.

"Gold is not like other products, you cannot gauge purity with the naked eye."

He hopes that the scheme will gain traction with tourists who will start to associate Singapore with high-quality gold jewellery products.

The aim is to accredit over 200 members by the end of the year.

Mr Ching Kwang Meng, 58, director of Ban Cheong Jewellers, said he signed up because it would reassure customers and, hopefully, help him get more business.

"It's worth the extra cost. We also hope Chinese tourists will look at our items and know for sure that they are pure," he said.

"There are a lot of dishonest retailers out there. The scheme will help us differentiate ourselves from such businesses."

'Not so pure' practice
By Jessica Lim, The Straits Times, 28 Feb 2015

A 24K gold baby bangle bought here was advertised as being 99.9 per cent pure. However, a Consumers Association of Singapore (CASE) survey found it was only 95 per cent pure.

The item, sold by Fu Lu Shou Goldsmith Jewellers, was the only one found to be less pure than claimed.

CASE sent mystery shoppers to 20 randomly chosen goldsmiths in November to buy gold jewellery. The pieces were then tested. To ensure no sampling errors, CASE bought a similar item from the same shop. This also failed tests, said CASE executive director Seah Seng Choon.

The "shop owner said the jewellery was purchased from a wholesaler who in turn buys from a manufacturer", said Mr Seah. CASE then contacted the manufacturer, who "claimed he needed to use less pure gold to weld on the joint and hook of the piece".

But the results "showed it was the main body of the piece that failed the test", he said, adding that CASE has told the retailer to stop such practices.

The owner of the goldsmith shop could not be reached for comment.

Last year, CASE received 23 complaints against jewellery stores.