Pay Now, Get Gold Plan Later – Business
Retail gold buyers in the UAE have started to book their cash purchases due to the surge in the price of gold.
Several UAE retailers have told this website that they welcome customers who buy gold at today’s prices – but only take delivery in a few months, say just before a wedding.
The trend is predominantly prevalent among Indians in the United Arab Emirates, who are the biggest buyers of gold at retail.
Gold hit its highest price this week – $ 1,609.51 – but prices retreated on Wednesday.
However, in the near future, no safe haven seems safer than gold. And savvy consumers expect the price to continue to rise.
Sailesh Sreedharan, Director of Investments, Chemmannur International Jewllers, Dubai, said: “The reason for the high appetite for gold is that the price of gold has gone up and is not falling. Most jewelers offer gold reservation programs. Customers who wish to purchase a reasonable amount of gold for weddings can now reserve a year in advance and stock up close to the wedding day.
“November December is the most requested time for wedding gold sales. For the next wedding season, a lot of people are reserving gold in advance, ”he added.
Sajith Kumar, CEO of JRG International, a DMCC commodities trading company, said: “The price of gold hit a record high, but due to profit reservation it fell on Tuesday night. Forecasts suggest gold will be in the range of $ 1,600 to $ 1,800, but gold sales are unaffected as traders and customers have refined their mindset for a high gold price. People who have stayed away from the gold market due to high prices come back with a systematic investment plan, ”said
Talk to Emirates 24 | 7, leading jewelers said the start of school holidays, Ramadan and the upcoming season of Onam have all prompted customers to buy gold ornaments, even though the price per gram on Tuesday hit Dh 187.5.
“The gold market, both wholesale and retail, is doing well because people have confidence in gold investments and many expats who will be traveling to their home countries for the summer vacation buy ornaments. Golden. Our Wholesale and Retail Divisions are doing well, ”said Sanjay Gora, Director of BRR Jewllery, a leading wholesale jewelry supplier for companies like Joy Alukkas, Atlas Jewllery, Damascus. and Chemmannur Jewllery.
Reuters reported that gold rallied for 11 consecutive sessions leading up to today and the market stretched. Peter Fung, head of transactions at Wing Fung Precious Metals in Hong Kong, said he expects gold to remain well supported at a level of $ 1,570 to $ 1,580 in the near term.
“The market still looks bullish, and by the end of the year, we could see prices go up to $ 1,800 or $ 1,900.”
Uncertainties over sovereign debt in Europe and the United States, as well as global economic growth in the second half of the year, should continue to support gold.
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