Falling prices spark gold rush

Updated 20 April 2013

Falling prices spark gold rush

The crash in the prices of the yellow metal has sparked off a gold rush across Saudi Arabia.
In the last three days, gold souks in the Kingdom have come alive with buyers flocking to cash in on the sharp drop in gold prices.
Most of the shop owners in the gold souk in Kandra said that their businesses have increased 50 percent in the last three days, whereas those in Balad said sales of 22-carat had gone up by more than 75 per cent and were expected to rise further.
Ismail, a salesman at Malabar Gold in Balad reported record rush since the drop in gold prices.
Arshia Nuzhat Baig, an Indian housewife in Jeddah, said it was “good news.”
Tanuja Anand, a Riyadh-based homemaker, said she was overjoyed and had immediately bought gold ornaments.
Syed Ghaziuddin Ali, a long-time resident of Jeddah, said it came as a “pleasant surprise.” He has invested in gold biscuits.
On the weekend, scores of families were seen shopping for gold in Riyadh and Dammam also, according to trade sources.
Prices of gold have stabilized at SR 173 per gram for 24 carat. This is up SR 2 per gram compared to what it was two days ago. The price of 22 carat gold is now SR 159 per gram — up SR 1 per gram as against two days ago.
Although there is a fall in gold prices, gold ornament shops are charging customers extra money for design and ornamentation.
Indian expatriates are top buyers of gold jewelry in the Kingdom. Many of them prefer to purchase 22-carat ornaments, which are available in few shops in major cities that are usually crowded.
Gold shops are struggling to cope with the rush. Salesmen are finding it difficult to maintain inventory of stock after closing shops. Some close earlier than the regular time in order to take inventory.


Fraud alert over cryptocurrency falsely linked to Saudi Arabia

Updated 21 August 2019

Fraud alert over cryptocurrency falsely linked to Saudi Arabia

  • The website of a cryptocurrency company is promoting what it calls the CryptoRiyal and SmartRiyal
  • The Singapore-based company uses the Saudi emblem of two crossed swords and a palm tree

JEDDAH: Fraudsters are trying to lure victims into investing in a “virtual currency” with false claims that it is linked to the Saudi riyal and will be used to finance key projects, the Saudi Ministry of Finance warned on Tuesday.

The website of a cryptocurrency company in Singapore is promoting what it calls the CryptoRiyal and SmartRiyal, using the Saudi emblem of two crossed swords and a palm tree. Its “ultimate goal” is to finance NEOM, the smart city and tourist destination being built in the north of the Kingdom, the company claims.

“Any use of the KSA name, national currency or national emblem by any entity for virtual or digital currencies marketing will be subject to legal action by the competent authorities in the Kingdom,” the ministry said on Tuesday.

The fraudsters were exploiting ignorance of how virtual currencies work, cryptocurrency expert Dr. Assad Rizq told Arab News.

“A lot of tricks can be played,” he said. “Some of these companies are not regulated, they have no assets, and even their prospectus is sometimes copied from other projects.

“They hype and pump their project so the price goes up. Inexpert investors, afraid of missing out, jump in, which spikes the price even higher. Then the owners sell up and make tons of money.

“Cryptocurrencies are a risky investment for two reasons. First, the sector is not yet fully regulated and a lot of projects use fake names and identities, such as countries’ names or flags, to manipulate investors.

“Second, you have to do your homework, learn about the technology. And if you still want to invest, consider your country’s rules and regulations.”