Iwan Putuhena

"It’s expensive to buy gold and the profit is low": Willy Harris

My Jakarta: Willy Harris, Gold Dealer

Anyone who thinks the gold business is an easy route to riches needs to sit down with Willy Harris, who will happily explain why the path to easy street is not necessarily paved with gold.

The longtime owner of Toko Mas Orient talks about the details involved in being a gold salesman, offers some pointers on negotiating a reasonable price and explains why he calls his line of work ‘an intellectual business.’The price of gold has skyrocketed recently.

What’s the price for a gram nowadays?

Right now, it’s about Rp 360,000 ($39) a gram.

How heavy is that bar you’re holding?

It’s 100 grams. Gold bars are commonly bought and sold at this weight.

Is getting in the gold business something you’d recommend to people right now?

No, because it’s expensive to buy gold and the profit is low. Most people come to my shop to sell. Given the economic situation in Indonesia right now, everyone seems to be selling gold.

Who brings their gold to you?

Anyone. We rely on repeat customers. Actually, we deal more with families. We’ve bought and sold gold and jewelry with some families for generations. We even accept house calls.

You mean like a gold delivery service?

Yes. I have one scheduled with one of my oldest customers. I just bring my scale and what I think she is looking to buy. But usually she purchases custom-made items. Then I just jump in my car and head off to her house.

When you have a lot of gold in stock, what do you do with it?

We sell it to the big companies. Normally, as the price goes up, we hold on to it. When it starts to go down, we are more likely to sell. However, selling gold to big companies is a gamble. Yesterday, gold cost Rp 375,000, but today it’s at Rp 360,000.

When do you think was the golden era of the gold business?

I would say in the ’80s. At that time, the Indonesian economy was booming and the dollar was less than Rp 2,000. During the Suharto era, business was good for everyone. Then the 1997-98 Asian financial crisis hit. The riots closed all businesses for at least six months. Luckily, I didn’t lose anything, but a lot of my friends lost everything. Since then, business has never really gone back to the way it used to be.

Were you scared becauseyou are ethnic Chinese?

Yes. I was just confused throughout the whole period. I took some time off before I started again. I had a place in Pasar Cikini for 37 years, then I had to move to the Menteng Prada building.

During the riots, what did you do with all your gold and jewelry?

I locked them up in a big vault, and then just waited until everything was somewhat back to normal.

Are you worried that we could seen another outbreak of violence like that?

Of course. We pray that it will never happen again, but deep down inside, we worry about it.

Where does the gold that you sell come from?

A lot of places, like Nusa Tenggara and Bogor. All the gold that we sell has a certificate and a serial number.

Is this a family business?

Yes. My son and I, we have two stores. Other members of my family are involved in construction, but I’m happy here in the jewelry business. I don’t want to get my hands dirty, and I like that I’m in a more intellectual business.

Could you teach us a little something about bargaining?

I have to be clear and open to my customers. It’s about trust. Plus, everybody knows the price of gold. I’m an open book.

But there’s always an element of bargaining.

Basically, we are in a traditional market. People who come to Cikini are looking for the best price. At the malls, a piece of jewelry has a price tag, which means you can’t negotiate. Even if the item comes at a discount, the store owner still takes in a lot of profit and you can’t sell it back. Things are different here.

How are you able to give such good deals?

Each piece comes with a tag with an equation on it. For instance, this wedding ring set has two diamonds at 0.08 karats for Rp 600,000. The bands are white gold, so they’re nine grams together at Rp 270,000. Then there’s the labor cost, which is anywhere from Rp 750,000 to Rp 1 million. That’s where we can negotiate. We break it down for you, so you can see how we come up with the price.

And all of that is written on those tiny tags?

The weight and size are on the tags. The price of diamonds and gold always changes, so we adjust to that rate. And you know the price. It’s out in the open.

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