Local jewellers have recently seen reasonable sales despite high gold prices mainly due to Eid festivities, the geopolitical situation and an unstable dollar.
Due to the gold’s ‘safe haven’ status, it is a favoured investment option for many
Inquiries reveal there has been a growing demand for gold bars -- from 1gm to 116gm, with the bullion remaining a ‘safe haven’ for many discerning investors.
Yesterday, 22-carat gold was traded at QR212 per gram. The price of 24-carat gold was QR226/gm yesterday.
Gold closed at QR25,790 for 10 tolas (116gm) yesterday.
Finished jewellery was in great demand followed by gold coins and biscuits, an industry source said. Bangles, handmade chains and necklaces were purchased by many customers. There were many takers for gold coins as well, which are now available from 1gm to 8gm.
Local jewelleries have also stacked up gold biscuits in view of the demand.
Industry sources said retail gold sales have not lost their lustre even during the high price cycle because of the precious metal’s investment potential. “Due to the yellow metal’s safe haven status, many people are investing in it,” said A J Joju, regional manager (Qatar) of Joyalukkas Jewellery.
Some customers purchased pendants and rings to be given as gift during Eid al-Fitr, Joju said.
Many Qatar-based jewellers had launched promotions to cash in on the bullion demand. On offer were gifts including premium branded perfumes and cash discounts.
Local jewellers mostly meet the ‘extra bullion demand’ with supplies from Dubai, which is the region’s largest gold market. And they get fresh stocks from the Emirate every fortnight
The local market generally sees brisk sales in June and July every year. This is because many expatriates go on leave during the summer. And invariably many of them carry gold with them. The Gulf region is considered the best place to buy gold because of the guarantee on quality.
Gold price has shot up considerably in the last few months, aided by rising global demand mainly from consumers in China and India and governments in various countries.
A recent study by QNB Capital showed gold reserves held by central banks worldwide increased by more than 2% between 2008 and 2010 mainly due to rising demand for the yellow metal from apex banks with surplus liquidity in some emerging markets.