Gold and jewelry sellers and investors are working to limit exhibits for the reason that the promotion of gold items has no classification.
Abdel Al Ghani Al Muhana of the Gold and Jewelry Committee in the Eastern Chamber said “Merchants and investors in gold and jewelry are calling on showrooms to curb exhibits, which do not have official specifications,” he added “Such gold items are sold by non-Saudi ‘merchant-traders’ who use the opportunity to market cheap gold items for high prices.”
A member of the Gold and Jewelry Committee in the Jeddah Chamber Mohammad Azzoz said that in Saudi Arabia commercial showrooms are making “astronomical gains.”
Recently, Jeddah observed the opening of three exhibitions in one month. The amount of showrooms exhibiting items from one of the noticeable countries in this field is restricted to four in one year.
Mohammad Azzoz added that the regulations of the Ministry of Trade forbid the sale of items in exhibitions; nevertheless the rules are rarely followed. Rules for protecting consumers are improving.
Member of the National Committee for Precious Metals in the Council of Chambers Abdul Mehsin Al Nimer said that the receipts given to customers are the only guarantee that customers are getting the unpretentious item. They have to contain all the details of the item, for instance price per gram and karat.
Al Nimer added “The gold market is witnessing a surge, the biggest in 10 years, because of the recent low in gold prices,” and also “This has coincided with the summer season, which has put more pressure on traders who had decreased the volume of their operations earlier because of the low purchasing power.”
He furthermore mentioned the vacuum produced by the exit from the gold market of small investors who had sidetracked their investments to real estate businesses and other markets after the prices of gold climbed and the number of customers reduced. It was expected, he said.
An Al Hessa merchant, Khaled Al Mulhim said that gold prices have showed a hard drop of 32% since the beginning of the year. He also said that this was perhaps the effect of the increase in the USD exchange rate. The straight influence of the decline of gold prices is that it is appealed to a big number of customers as demonstrated in the volume of demand in Gulf markets.
He added that the total limit of the price range of gold items was amid 175 and 195 according to the karat, adding that the recent rise in demand is because of the approaching of the summer season which is making a resilient market.