Gold sales in the summer holidays have increased by nearly 30 percent compared to the period before the holidays. The demand for golden gifts and bridal jewelries is high and traders are making up for the lean period.
Ali Al-Kaabi, shop manager, said summer vacation is always a profitable season for gold traders. “Most sales are in bridal jewelry sets, although other types of jewelry are also sold,” said Al-Kaabi. “Profits increase whenever weddings do.”
During the last two years, gold prices witnessed fluctuations although they were rising in general as a result of the global economic situation. Oil price hikes also had an impact on rise in prices. Instability witnessed in the Eurozone was an additional factor that increased the demand for gold, which is considered a safe choice in the midst of economic crises of some global economies.
Saeed Bakarman, gold investor, said most factories produce modern jewelry in this season to attract customers during a long profitable period. “Timing is an important factor in terms of marketing,” he said.
Abdulaziz Al-Dusari, who owns several gold shops, said gold markets (retail shop markets) are strongly linked to seasons.
“In some cases, months pass with a shop not even able to cover its operational costs, while in a few days during a profitable season shops make up.”
