As the value of the currency has gone down in several countries, people have turned to gold as a secure investment, which has increased its demand globally, Managing Director – International Operations Malabar Gold & Diamonds Shamlal Ahamed told The Peninsula yesterday.
He said the price of gold is dependent on numerous socio-economic factors. Concerns about the banking crisis in the USA might be one among the several reasons that have contributed to the increase in the gold rate.
Considering the ongoing economic scenario, it is safe to assume that gold prices will remain volatile for some more time Ahamed said adding that Malabar Gold & Diamonds has introduced a pay 10 percent offer wherein they can block the gold rate by paying just 10 percent of the total amount as advance, valid until April 23 to protect customers from the increasing gold rates.
“If prices go up during this period, they can purchase gold at the blocked rate and if prices go down, then they can draw mileage from the reduced rate. In addition to this, we also offer a 50 percent and 100 percent advance facility as well to block the gold rate for three months and six months, respectively,’’ he said.
Prices of gold, a safe haven have rose sharply in Qatar since the beginning of the holy month and are expected to rise further due to the high demand during Ramadan according merchants of the precious metal.
Sales Manager, Malabar Gold & Diamonds at D Ring Lulu, Harshad Ayub said gold sales had increased this month compared to the last month triggered by the demand during the Ramadan.
“We have seen a notable growth in sales which we anticipate to rise further as prices globally have increased,” Ayub said adding that the demand for gold, a safe asset will not easily diminish.
The price of a 22K sovereign stood at QR232 and 24K at QR247 yesterday at the spot market.
The Ramadan festive offers have attracted customers to the purchase of the safe investment in Qatar.
‘’The promotional offers that will last till April 23 have boosted sales which has been quite satisfactory in the recent weeks,” Ayub said adding that general customers account for a major segment of the customer base while corporate purchase directly from the main office.
Gold coins and jewellery are also purchased for its sentimental value and are presented as gifts to mark milestones in life.
Corporates present gold coins to long serving employees as a mark of appreciation and parents present to children on an important day in their life.
A salesman at Kalyan Jewellers at D Ring Lulu said sales had been good this year but had increased by around 40 percent since the start of the holy
month.
The precious metal has gained immense sentimental value over the years and has been considered a symbol of wealth and good fortune for generations.
Gold sales are said to rise by over 50 percent during the Ramadan according to a recent
report.
Prices of gold are generally inversely related to the value of the US dollar since the metal is dollar denominated.
