Muscat: People in Oman, who want to buy gold, have been advised to do so at the earliest, before the price of the precious metal increases.
With people uncertain about investing in many commodities, owing to how their value is expected to rise and fall during the COVID-19 pandemic, gold continues to remain a safe bet to invest their hard-earned money.
“It’s a historic day for gold and all individuals or institutions who have ever purchased gold, as their investments have turned profitable with the gold rate crossing its previous record rate of $1,920 per ounce,” said Najeeb K, regional head – Oman, for Malabar Gold and Diamonds. “Gold is trading at $1,935 per ounce and has appreciated 37 per cent in a year’s time, outperforming all other assets.”
Global investors and central banks continue to invest in gold as a safe haven asset, making the yellow metal hit record high prices, and prominent banks and financial institutions have projected gold prices to increase in light of the current global economic situation.
“The global COVID-19 pandemic fuelled safe-haven investment demand for gold, offsetting marked weakness in consumer-focused sectors of the market,” said the World Gold Council in its Gold Demand Trends report for the first quarter of 2020, which was released in April this year.
“The coronavirus outbreak, which swept the globe during the first quarter, was the single biggest factor influencing gold demand,” added the organisation. “As the scale of the pandemic – and its potential economic impact – started to emerge, investors sought safe-haven assets.”
There has been a 34 per cent increase in the price of gold over the past year, which means people who wish to sell their gold will also find a good price. On 28 July, 2019, the price of the yellow metal was OMR 17.45 per ounce, compared to OMR23.45 per ounce on 28 July, 2020.
The price of gold in the Gulf Cooperation Council countries is also a good deal lower than it is in India. While the cost of gold per gram in India is about INR 5,125 (approximately OMR 26.5), it is 10 to 13 per cent lower in Oman and the other Gulf countries.
In keeping with the high gold prices that are expected to escalate even further in the weeks to come, jewellers in Oman have also introduced schemes for people who wish to buy and sell jewellery. Malabar Gold and Diamonds, for example, have introduced a cash buy-back scheme.
“Customers of Malabar Gold and Diamonds are protected by guaranteed cash buy back for all jewellery purchased from them,” said a statement from the company. “Considering the current scenario, we initiated a cash buy back scheme for people who have purchased gold jewellery from other retailers as well – to support and provide maximum value and easy liquidity. This scheme is 100 percent compliant of all local laws and regulations.”
The company has also brought in a 10 per cent gold advance scheme, where customers who pay an advance of 10 per cent of the price of the jewellery they wish to buy can block its price for the next 30 days, with the cost of jewellery constantly fluctuating every day. Should the price of gold fall while its price has been blocked, customers who have paid this advance will only need to pay the corresponding reduced price.
Alternatively, customers who pay 100 per cent of the cost of the jewellery in advance can block the price of gold for the next 180 days. The gold advance scheme is valid until 30 September.
“A customer intending to buy gold worth OMR1,000 just needs to pay OMR100 to avail the advance booking offer and in turn get protected from the increasing gold rates,” said the company in a statement.