Dubai jewelers are experiencing serious sales difficulties due to the rapid rise in gold prices to $2,200 per ounce. writes about this Bloomberg.
Against the background of another strong rise in the yellow metal, most local residents prefer to just window shop and postpone purchases until prices drop.
“People ask why it is so expensive, so they buy much less. If we are talking about large purchases, they expect the price of gold to fall,” explains experienced trader Abdelnasser Alyafi.
The biggest drop in demand is seen in stores selling bullion. Three sellers of such goods reported that their sales had fallen by exactly half. At the same time, although demand for jewelery has fallen, it remains relatively better.
“Tourists don’t think about price at all; they come to Dubai and buy what they want,” says Mohammed Tariq, manager of the Kanz Jewels jewelry store chain.
He said his sales were down about 40% this week, largely due to an influx of local shoppers.
Merchants had better luck at the height of the tourist season; Visitors from Britain, the USA and other countries actively purchased gold jewelry, knowing that such goods may not be available in their home countries.
The publication also writes that some local residents, on the contrary, prefer to hand over old gold items for melting in order to make money on this.
“Gold is the only commodity that people are willing to fight for,” said Alyafi, hoping that favorable price conditions will return.
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The price of gold before Established new all-time high.