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By Faisal Aboobacker Ponnani
\nDAMMAM \u2013 Gold prices in the local market have hit a record high with 24 karat gold being sold for SR113 per gram on Monday. This is the highest price ever recorded for the yellow metal, according to gold traders in the Eastern Province.
\nOver the past week, prices have gone up by SR5 per gram, with a rise of SR3 over the weekend.
\nAccording to a survey, gold jewelry consumption has dropped by 9 percent in the UAE, 10 percent in Saudi Arabia, and 11 percent in other Gulf countries.
\nGold traders say that their sales have, in fact, dropped drastically over the past two months. Compared to December 2008, sales dropped by about 40 percent in January with most customers adopting a wait and see approach.
\nPeople have become wary of spending as a result of the global economic crisis said a salesman from a jewelry outlet in Dammam ladies market. Customers look at the models and designs, but when they hear the price, they change their minds and leave the shop empty-handed.
\n\u201cThey say the prices are very high, and their budget does not allow them to purchase now,\u201d the salesman added.
\nAnother jewelry shop owner from Al-Khobar said that fluctuating prices have contributed to the uncertainty in the market. Those who want to invest in gold may fear a future crash in prices while those who want to buy gold for personal use may be waiting for a fall in prices.
\nIn addition to that, jewelry-making charges can work out to anything between SR5 and SR12 per gram of gold depending on the design and model.
\nPure gold is mainly used as an investment. Gold prices have a tendency to go up suddenly when there are wars and uncertainty in the world. As uncertainty has hit global financial markets, more and more funds are being channeled into pure gold, which is the safest investment avenue in times of crisis, said one of the traders about the hike in gold prices.
\n\u201cIt is natural for people to turn to gold as an asset since individuals and institutions are losing faith in banks and shares,\u201d he said.
\nA counter sales executive from Hassan Al-Nemer Jewelry outlet at Al-Waha Mall in Dammam said that their sales have dropped by about 40 percent over the past two months. All the world\u2019s markets have been affected by the financial crisis and sales of gold are no exception, he said. \u2013 SG<\/p>\n
Source: www.saudigazette.com.sa<\/p>\n","protected":false},"excerpt":{"rendered":"
By Faisal Aboobacker Ponnani DAMMAM \u2013 Gold prices in the local market have hit a record high with 24 karat gold being sold for SR113 per gram on Monday. This is the highest price ever recorded for the yellow metal, according to gold traders in the Eastern Province. Over the past week, prices have gone […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[411],"tags":[],"yoast_head":"\n