Tarnished Gold Sales

Rising gold prices are tarnishing sales of jewelry in the Persian Gulf; leading Doha based jewelers to offer uniform gold prices. The only bright spot for traders was the period leading to the festival of Aid Al-Fitr, which traditionally sees a boost in sales.

Despite the high prices, this year was no exception.

However, according to industry sources, quoted in the Gulf Times newspaper, the increased sales at the end of Ramadan proved to be the only meaningful business for jewelers in the last three months.  

Said one Gulf jeweler, "We are not optimistic the situation will change for the better before the year ends. For one, the prices remain high and unattractive. The vibrancy in real estate and the upward revision in bank interest rates have also affected gold sales to a large extent."

To counter the slump in demand, Doha jewelers have joined together to offer gold at identical prices. Explained one local businessman, "earlier, there used to be undercutting. But we have realized now this does more harm than good,"

The current gold spot price is $496 per ounce.