Gold glitters as prices plunge

BY KK MOIDU
BY KK MOIDU
PLUNGING prices of gold
have helped retailers see an
increase in the sale of the
yellow metal. The price of
22 carat gold is Dhs 88.75
and 24 carat is 94.25.
A price decrease of
Dhs15 compared to last
year’s lowest price is attracting
budget-conscious
buyers.
Jewellery outlets in
Sharjah were crowded during
the weekend evenings
and more people were seen
buying gold.
Basheer TA, salesman of
Atlas Jewellery Sharjah,
Gold Centre branch said:
“The sale of gold ornaments
has increased more than 50
per cent after the sudden
decrease in the price charts.
For the last few days the
price of gold is reducing everyday.
The low income
groups from India and Pakistan
are utilising this
golden opportunity to buy
ornaments.”
A sudden steep fall in
the price of gold is rare and
people are considering it as
an apt opportunity to go
for their sought-after models.
“Although our sales promotion
started in June
2008, the sales volumes
were not good last month
because of high gold prices,”
says Basheer TA.
“But after the price of
gold started plunging, more
and more customers are
coming.”
The high price of gold
along with increased cost of
living had discouraged
many low-income groups
from buying jewellery. Only
the much-needed people
were opting for it.
Yousuf PK, a Keralite
from the Southern part of
India, said; “I am buying
gold for my daughter’s marriage
in December. I will be
going on leave for Eid Al
Fitr in the end of September
2008, but I am buying
gold because I fear the price
will again go up.”
Liyaqat Ali from Pakistan,
who was purchasing
gold ornaments for his wife,
said: “For the last couple of
years, I didn’t buy gold because
it was unaffordable. I
do not want to wait more
time because there are various
reasons behind the
gold price ups and downs
like oil and dollar. The price
of gold ten years before was
around Dhs30 per gramme
and now the price is nearly
Dhs90 per gramme. I think
after sometime the price of
gold will again increase and
that is why I am buying
now.”
Shameema Muhammed,
a housewife from Kerala,
said: “I did not buy gold last
time when I went for vacation
because of the high
prices, but now I can afford
it. I went to the jewellery
shop last week in The Gold
Centre Sharjah and the big
rush in shop made me postpone
my purchase. But the
price has come down again
for the last few days and I
am buying gold for cheaper
price than my friends purchased
last week.”