RIYADH, 2 December 2007 — With the price of gold having dramatically increased by over 27 percent in the last two months, jewelers across the Kingdom are reporting huge numbers of women selling their gold.
The jewelers say much of the gold that is currently being sold was bought when prices were low, according to Al-Eqtisadiah newspaper.
“I took advantage of the increase in gold prices and sold my wife’s gold making a 30 percent profit on what I had paid three years ago,” said Yahya Shrahili.
“The price of gold had been going down for quite some time, but the recent surge secured me a profit,” said Shrahili, adding that he made SR25,000 from the deal.
Raid Al-Aseeri convinced his wife to sell her gold to pay off debts that he incurred during the stock market crash. “It’s helped us out. I know quite a few people who’ve been busy selling their gold,” he said.
Meanwhile, there are some people who are complaining that they had to postpone marriage plans because of the steep rise in gold prices.
Majed Al-Haqbani, a young Saudi, said he postponed his wedding because he could not afford to buy gold for his bride.
“The budget I had set aside in order to buy jewelry for my fiancé is not enough anymore. I’m going to have to work a bit more and save up,” he said.
Gold retailers across Saudi Arabia have been grappling with falling sales as the price of the precious yellow metal rose to a 28-year peak. A weak dollar, record high oil prices and geopolitical tensions have been given as some of the main reasons for the rise in gold prices.
Jewelers say that most people are selling rather than buying. Saleh Al-Harthi, who owns a jewelry shop, said the market was experiencing an all time-low. “I don’t know how long this is going to continue, but I hope it ends quickly,” he said.
Prices are expected to go further up as a result of increasing demand from investors looking for safe-haven assets.
