Sales surge despite gold price rise

MUSCAT: Retail gold sales in Muscat have surged 20 per cent in the last fortnight and are expected to stay strong until the Eid holidays, traders said.

Gold prices nationally have also been rising, largely triggered by a series of political events across the world. On Thursday, 24-carat gold was selling at OMR16.5 per gram and 22-karat gold was selling at 15.85 per gram.

“We are experiencing a very good footfall as people are exchanging their existing gold while some are buying new,” Najeeb K, regional head, Malabar Gold and Diamonds, Oman, said.

Traders said sales have increased because of holiday buy- ing. “Expatriates, mainly Asians, buy a lot of gold jewellery and gold bars for investment purposes before going home every year in summer,” Anto Ignatious, regional manager for jewellery brand Joy Alukkas, said.

“Retail sales were up at least 10 to 20 per cent in June. This is normal because of holiday purchases,” a trader said, adding that strong sales are expected to continue. Gold jewellery owners say the attraction for gold is likely to continue as people think gold is always good for investment purposes and for special occasions. “We’ve already seen a spike in the number of walk-in customers, aside from our regular clients. We expect more people to buy gold ornaments.” Najeeb K said.

Ranjit, an executive at a reputed jewellery store, said: “Although Ramadan is a lean period, the sales are quite good because of the school holidays. People continue to invest in the metal as it is easy to encash during emergency with profitable gains.”