ONE way to soften the impact of soaring gold prices when buying jewellery is to trade in your old pieces for new ones.

Mr Muhammad Khan, 42, the general manager at Dinar and Dirham Gold Traders, gave this example.

If you buy a gold necklace for $1,000, you would have to pay $70 in GST.

However, if you trade in an old piece of jewellery that is worth $900 to buy the $1,000 necklace, you would have to only pay GST for the difference of $100, which amounts to just $7.

'Trading in is better if people no longer like their old jewellery,' said Mr Muhammad Khan.

'However, they must look around for traders who offer competitive rates. They must earn on trade and not lose.'

This article was first published in The New Paper.