Monday 09 / September / 2024
Muscat: A number of gold traders and shop owners in the Sultanate of Oman has confirmed that the sale of gold in the Omani market has declined by about 30 percent during the past few months due to rise in its prices since the beginning of this year. Many geopolitical and financial reasons have been attributed to its rising prices.
The traders said that the rise in the price of gold has led to a noticeable dip in the purchasing activity in the gold markets in the Sultanate of Oman, which contributed to a decline in the sale of gold jewellery, causing problems for traders and shop owners.
Muhammad Amin bin Adam Al-Sayegh, owner of a gold shop in Muttrah Souq said: “The rise of gold prices in global markets is a result of geopolitical conditions and fluctuations in the financial markets.”
He told Oman News Agency that the price of a gram of gold rose from about OMR22 at the beginning of 2024 to OMR27 per gram currently, leading to a decline in purchasing activity, although the wedding season in the Sultanate of Oman began about two months ago.
He pointed out that as a result of the rise in gold prices, some people have turned to buying silver and gold-plated jewellery instead of gold affecting the owners of gold shops and traders in the Omani market.
A trader Siddiq bin Dawood Al-Sayegh said: “The rise in prices came as a result of speculation in the markets of producing and importing countries and the conditions witnessed in the Middle East region and the control of some commercial investors over gold prices.”
Value-added tax and manipulation of prices and the quality of gold by some owners of unlicensed gold workshops have also contributed to the lack of demand for gold since the beginning of the year, he said.
He indicated that gold prices will witness further increase in the coming period as a result of the current conditions in the Middle East region and the upcoming US elections, noting that it is expected that the price of a gram of gold will reach OMR30.
He said that there is no doubt that the rise in prices in the coming period will contribute significantly to the decline in gold shop sales in the Omani market; which will lead to financial losses to traders.
Qais bin Abdul Hamid Al-Sayegh, a gold merchant, said: “The gold markets in the Sultanate of Oman in the past witnessed strong sales to meet some obligations and for special needs.”
He stressed that the continuous rise in gold prices is likely to affect shop owners and merchants, and buyers may seek other sectors for investment.
Khalifa bin Abdullah Al-Mandhari, said: “Gold prices have been rising since 2005, and the price of a gram today has reached more than OMR27; leading to a decline in gold purchases. The low economic activity and the tax imposed on the purchase of gold have also led to decline in its purchase.
Umm Yazan Al-Amri agreed with him by saying: “The weak demand of gold is due to the low income of the individuals and the rise in prices in general, the manipulation of some merchants with the quality of gold, fraud by owners of unlicensed workshops, and the lack of new designs of jewellery.”
Mansour bin Rashid Al Ya'arubi, Senior Laboratory Technician at the Precious Metals Laboratory at the General Directorate of Specifications and Standards at the Ministry of Commerce, Industry and Investment Promotion, said: “The Directorate is making great efforts to monitor gold markets and workshops in the Sultanate of Oman to prevent tampering with quality and prices.”
He stressed that there are continuous inspection campaigns on gold shops and workshops to ensure the quality of the displayed jewellery in terms of the presence of its stamp and seal, stressing the need to verify the daily price of gold displayed on the screens in the shops with the presence of the stamp and seal that indicate the type and quality of gold.
