By Pratap John

DISCERNING gold buyers have to make do without coins these days due to shortage in the local market, as the price of yellow metal again started increasing after a few days' stability.

Industry sources yesterday said there was a short supply of gold coins primarily due to their heavy demand in Dubai, the main regional source for gold.

The spurt in the demand of gold in Dubai is due to the ongoing Dubai Shopping Festival (DSF) during which jewellers offer special incentives and prizes to customers.

The manager of a leading Doha jewellery shop told the Gulf Times yesterday that gold coins were not available in most city outlets now.

"We have been facing a shortage in gold coins in the last few days. Normally, we get gold coins and other jewellery items from Dubai. But due to the DSF, there is no adequate supply from there," he said.

Sources said the greatest demand is for gold coins weighing 8gms or a sovereign. Gold coins of 2gm and 4gm are also available, mostly on demand.

They said another reason for the current shortage of gold coins was the long holidays due to Eid al-Adha.

"Imported gold needs to be certified by the municipal authorities before they can be sold in Qatar. The department did not function during Eid al-Adha. Hence whatever imports made could not be certified," an industry source pointed out.

Meanwhile, gold prices have again started climbing after a few days' stability.

Gold closed at QR70.50 for 22-carat and QR76.50 for 24-carat in the local market yesterday.

And for 10 tolas (116gm), the price was QR8580 yesterday. A few days ago, it was stuck at QR8,380.

Despite the rising prices the gold sales have been brisk as before, a jeweller said.

"Many see gold as a safe investment. And many customers think the gold prices are unlikely to fall, though they may not shoot up in the short to medium-term. Hence it is being considered a reasonably good investment," he said.

Industry sources said the business seen since mid-November was sort of "unprecedented".

Sales had gone up because of 15th Asian Games in Doha. Both visitors and residents seem to have contributed to this.

Jewellers said many visitors to the Games and athletes purchased gold during their shopping.

Expatriates who flew out on holidays taking advantage of schools closure during the Games had also purchased gold.

And towards the year-end, the gold sales have surged primarily because of Christmas, Eid al-Adha and the New Year, said A V Joju, an executive with Joy Alukkas Jewellery.

Joju said though there was no marked difference in gold price worldwide, many expatriates, particularly non-resident Indians, buy the yellow metal from the Gulf due to the "guarantee on quality".

Also, a wide range of designs was available in jewelleries across the Gulf.

A jeweller said the prices might not remain stable in the coming weeks due to the current fluctuation in crude oil price.

"The price of oil has a bearing on the gold price in the international market. So, the price of yellow metal will depend on how the crude price moves," he said.

In the last two years, prices in the international market have more than doubled, causing a sharp decline in the metal's retail business.

This was due to a combination of factors including skirmishes in many regions, declining bank interest rates and bearish run in capital markets worldwide.