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Posted On: 10 May 2013 11:47 am
Updated On: 12 November 2020 02:12 pm

Gold sale picks up on lower prices, festival

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Local jewellers have seen ‘brisk’ sales since early May thanks to retreating prices and a Hindu festival, which is considered auspicious for buying gold. Gold closed at QR166 for 22-carat and QR178 for 24-carat while ten tolas (116gm) ended trading at QR20,762 yesterday. While demand continues for gold bars and coins, many customers are now placing orders for finished jewellery such as necklace, bangles and chain, an industry source said. 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. Many jewellers have ordered fresh stocks in view of the forthcoming Hindu festival Akshaya Tritiya, which is celebrated in many countries including India, Sri Lanka, Nepal, Malaysia, Singapore, Mauritius and Fiji. This year Akshaya Tritiya is on May 13. Jewellers brought in from Dubai and other places finished gold items such as chains, lockets, bangles and necklaces, which can be given as gifts during the festival. Prior booking of jewellery is accepted from early May so that customers could pick these up during the Akshaya Tritiya festival, said AJ Joju, manager at Joyalukkas Jewellery in Doha. “Those celebrating Akshaya Tritiya prefer to pick ornaments during the festival,” he said. Many jewellers have arranged promotions that last beyond May 13 in view of Akshaya Tritiya. An industry source said the drop in gold price since April had been an ‘incentive’ for many customers to invest in bullion. Many customers were seen at jewelleries across the city to pay for medallions and ornaments, though the buying purpose varied from investments to the festival-linked beliefs that gold purchase during Akshaya Tritiya would bring about prosperity. 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. A few years ago, people bought gold on a need-to basis, for weddings or special occasions when they really have to,” Joju said. 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 Traditionally, gold sales become brisk from mid-June until the first week of August, which industry sources term as the “peak summer season.”