Shockingly, Dubai has run out of gold of course not literally, but still the fact remain that the salespersons at jewellery outlets say there is no supply of gold coins and biscuits.
While those hoping to cash in on the act of gold rates are likely to be disappointed if they head to retail outlets as the men manning the counters say the the city has run out of coins and biscuits and that there seems to be no gold coin or bar available in Dubai according to a salesperson in Karama.
According to Pradeep, an Indian logistics executive who joined the throng of buyers at Karama Shopping Centre, where a cluster of gold shops were buzzing with customers that it’s unthinkable for gold to come down to this level.
Moreover, on Friday global gold prices closed down five per cent, being about prematurely by fears of a gold sell off by European central banks to pay for bailouts by unwell countries.
In fact, a staff from Malabar Gold told from the Karama branch on Monday that all their gold biscuits weighing 10, 20, 50 and 100 grams are sold out as of today while sorry came from Sudarsan, a salesman at Joyalukkas, pointing to the 'unusually huge' number of customers in his shop as they can’t talk to journalists right now.
Even on Sunday night at the Deira Gold Souq, many shops were open beyond the 10.30pm store hours to accommodate customers.
J.B., manager at Juthalal Mulji Jewellers in Satwa, said the buying is expected and that Gold remains the safest form of investment. Fact-fully, Indians and people in the Gulf love it for centuries due to its value.
Buyers' appetite rushed as a 24-karat biscuit that sold for Dh177 a gm on Saturday went down to Dh170.25 on Monday. It glided further to Dh167.50 on Tuesday. Vijay Vaya, manager of Harilal Jewellers said that buying has temporarily softened on Tuesday as people waited for prices to stabilise. Gold outlets such as Sky Jewellery, Damas and Joyalukkas on Monday said they ran out of gold coins and bars, a situation reported by retailers in Singapore and Hong Kong.
Afshan, a Dubai-based Pakistani teacher, said that she bought 22-karat jewellery here last year when the price was Dh205 per gram and now it's Dh160 per gram while Filipina secretary Jenny V. was with her fiancé Renato hunting for a gold ring at Chemmanur International Jewellers on Sun-day. They can afford heavier rings for the same budget," said Renato.
Pradeep Unni, a senior relationship manager at brokerage house Richcomm Global Services in Dubai Gold and Commodities Exchange, said Indians love to buy gold here as they pay the actual international price. Unni continued saying that they do not lose extra money on taxes and services charge and that Gold will continue to remain clumsy in the short term as exchange-traded funds sell holdings in favour of riskier investments like stocks due to expectations of a US recovery, as a result the wedding season demand from India and China will however sustain prices from early May.
Finally, it's a relief for Gold buyers!
(AW:Samrat Biswas)
