They have been successful in attracting a large number of women customers happy to fulfill their gold cravings, at least for the time being.

Al-Madinah Arabic daily reported that some traders lure customers with a poster placed in front of their premises advertising that gold is available to be pawned.

This has helped retailers overcome the crisis they face due to a slowdown in business after the price of gold reached a record high of $1,248 per ounce in May this year.

Jeweler Muhammad Jameel Azouz, who is also member of the national committee for precious metals at the Council of Saudi Chambers of Commerce and Industry, confirmed a number of businesses have turned to pawning.

“There has been a tremendous response from customers looking to buy gold temporarily by paying an amount less than market prices,” he said.

He added that high prices have crushed the hopes of many customers wanting to buy gold.

“This prompted owners of many jewelers to find alternatives to tackle the slowdown in business,” he said.

He added that many jewelers have to complete a lot of procedures to open a business. “They have to secure licenses and sanctions from at least nine government agencies before opening an outlet,” he pointed out.

Despite a gram of gold costing as much as SR150, a large number of customers are turning out to buy gold for weddings, says jeweler Salah Al-Ammari.

He claimed that there has been a noticeable change in customer attitudes.

“We now make larger ornaments with the latest attractive designs. But their weight is much less compared with older models. We are successful in satisfying a huge number of customers, especially would be bridegrooms,” he said.

Sheikh Faidhy Al-Hashidi, chairman of Jeddah Molding and member of the Gold and Ornaments Committee, said that he did not know anything about the new practice.

“It is totally unacceptable,” he said.