10 tons of fake gold sold in Algeria

Huge amounts of fake gold have been circulated in the Algerian market since the State gave up legal importation of gold in 1986, according to CEO of the National Company of Gold Mines Exploitation, Mustapha Ben Zerka.Mustapha Ben Zerka estimated that more than 10 tons of fake gold are annually circulated in the Algerian market. They are smuggled from Turkey, Syria and Italy as it is allegedly 18-carat gold but actually it is no more than 14 carat. That means it contains a large part of copper while the gold guaranteed by the Algerian State is 18 carat.

The CEO called on Algerian Finance Minister to review the current value added tax on gold and precious materials import. “It has a negative impact on Algerian gold competition in the world market.”

Algeria’s market needs 15 tons of gold per year. This quantity is calculated on the basis of annual marriage certificates. On the other hand, the National Agency of Gold and Precious Materials can afford more than 5 tons per year. The national market of gold and precious materials has been under the control of Italian, Turkish and Syrian smugglers since AGENOR company was prevented of importing gold and precious materials in 1986.

Ben Zerka said the Algerian market of gold and precious materials suffers from very serious problems which had a negative impact on the Algerian gold importing policy to international markets. It also influences gold traditional national industry. Those problems consist in the high value added tax, estimated at 17 percent at present. “It is very high because the gold price is internationally determined. When the Finance Ministry implements the value added tax, the Algerian gold intended to export can not afford compete with gold in world market.

The CEO believes that attempts to export Algeria’s gold which was produced in Tamenrasset province (south of Algiers) to Switzerland failed due to the current high value added tax on gold.