Lower prices spark gold rush

July 30, 2014 - 2:40:15 am
Women buying gold jewellery at a shop at Al Khor Mall yesterday. Kammutty VP

BY SACHIN KUMAR

DOHA: Lower prices of gold and offers by jewellers have created rush for jewellery during Eid Al Fitr.

Jewellers across Qatar witnessed a large number of people rushing to buy jewellery, with sales surging by up to 40 percent.

“Monday was a very busy day for us due to a huge rush of customers to buy jewellery on the occasion of Eid.

“Sales were up by about 30-40 percent during this Eid compared to the previous year,” said Dileep Madhavan, Regional Manager, Atlas.

The company has three retail outlets in Qatar and 60 in the Middle East and India.

“Higher demand for jewellery was driven by lower prices of gold and our offer — we are giving gold coins to customers on purchase of jewellery worth QR1,500 or more,” he said.

Falling prices have added to the festive mood and boosted sale of gold. Last year, high prices dampened customers’ enthusiasm to buy gold or jewellery.

This Eid 22 carat gold trading at QR150.50 and 24 carat at QR161.50.

Last year, during Eid, 22 carat gold sold for QR165.50 and 24 carat for QR175.

Prices went up in 2012 due to high demand but started falling after 2013, stabilising early this year.

According to jewellers, Qataris and expatriates — mostly women — were buying jewellery.

“It was family-oriented gold buying where customers bought bangles, chains, necklaces and other jewellery.

“Demand for 22 carat jewellery was higher. Overall, demand was higher 20 percent this Eid compared to the previous year,” said Joseph M P, Sales Manager, Sky Jewellery, at Lulu Al Khor Mall.

Sale of gold jewellery peak during Ramadan and Eid in Qatar.

Demand for bullion was not much, said Madhavan.

“During Eid customers prefer jewellery, not coins or bars.”

THE PENINSULA

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