DOHA: Gold bars and coins of various denominations are available in local market in sufficient quantities after the shortages witnessed during the soaring demand last April.
That was the time when gold rates had suddenly climbed down after being too high for about two years. Gold prices are stable now and, in fact, fell further in the past two to three weeks. "There is no dearth of gold bars and coins (at least with us) now," said an official from Gulf Exchange that also deals in bullion.
The official said the demand for the gold biscuits and coins had risen after gold prices came down recently, but as the prices have stabilized so has demand. "There isn't much demand presently."
Market operators said gold jewellery is more in demand during festive seasons like Eid Al Adha as people give away gifts to their near and dear ones.
However, compared to last year the craving for jewellery is also not as high, said a salesman from a jewellery marker. As for the coins and bars, they are mostly bought by expatriate investors and their demand peaks when gold prices are down.
"We literally have crowds lined up when gold rates plummet," said the exchange official. Sales are also brisk when the long summer break begins as expatriates travel home on vacations.
Pure and 22-carat gold from the GCC states carry a premium particularly in South Asian countries. Expatriates buy the bars and coins for two reasons--for investment and to make jewellery when they are home.
The standard 24-carat or pure gold, bar of 116 grams was selling in the local market for QR17, 600 yesterday, down QR400-QR500 in the past fortnight. The bars of smaller denominations were also available, and same was the case with coins of varying sizes.
Pure gold was selling at around QR151 here yesterday, down from a high of QR208 some 26 months ago, in August 2011. Gold rates began climbing down in the past six months. Since early this year, for example, the prices are down more than 20 to 25 percent.
Meanwhile, despite high "making" charges jewellers said the demand for gold ornaments remained high. Making charges have gone up as much as QR30 on exported jewellery while for the local ones they remain at QR10 to QR15 per gramme.
© The Peninsula 2013
