15 October 2009
MUSCAT -- Jewellers in Oman are all smiles these days. According to a majority of them, the sale of gold jewellery has shot up significantly ahead of the Indian festival of Diwali.
Dhanteras, the first day of the five-day Diwali festival, falling today, is of great importance to many Hindus.
It is traditionally believed that buying gold on this auspicious day brings good fortune and luck. This is perhaps the reason why despite rising prices, shoppers in Oman are lining up to buy gold ornaments.
Incidentally, a number of jewellers here are promoting gold sales with attractive offers.
However, jewellers insist that buyers are flocking because of gold's extensive appeal as an investment vehicle.
Power of gold
Rajesh Govindan, country manager, Damas LLC, said in a rapidly changing global economy it would seem few things are more timeless than gold.
"As they say, only gold grows more precious. If you observe you will see that the price of real estate has come down but that gold prices have not been hit. I have noticed that people still believe in the power of gold. That is why you see them investing in gold," says Rajesh.
Jose K.F., regional manager, Joyalukkas Jewellery LLC says despite the price of gold hitting an all-time high, things are looking good.
"It may sound to be unbelievable, but the response to festival shopping has been the same as last year. We continue to receive a lot of bookings. We are sure to receive a lot of customers on Dhanteras," says Jose.
He also believes people think it prudent to invest in gold.
On Tuesday (October 13) the price of gold was RO12.5 per gram. Last year in September the price was around RO10.550 per gram.
Jose also believes that the seemingly astronomical price of RO12.5 per gram is probably just an interim value point on the way to even higher prices.
"By March next, it may touch RO14 to RO15," he says.
"So the gold price that people gasp at today could well constitute an unimaginable bargain next year," Jose adds.
Appreciating value
This is why, Jose believes, that more and more people are buying gold. "They are sure its value will go up," he says.
Though Riyas, manager, Sea Pearls has not had a similar experience, he, too, is hopeful.
"With Dhanteras-Diwali round the corner, we are looking to see good response. But I don't really foresee volumes rising much. Maybe we will see a couple of good days of buying in the coming days," he adds.
According to the World Gold Council, the demand for the yellow metal follows a seasonal pattern. Both Eid Al Fitr and Eid Al Adha are a significant gold-buying occasions in the Arab world, while western world buys it during Christmas.
In India gold buying peaks during the wedding season and at times of various festivals
that vary from one region to another.
MUSCAT -- Jewellers in Oman are all smiles these days. According to a majority of them, the sale of gold jewellery has shot up significantly ahead of the Indian festival of Diwali.
Dhanteras, the first day of the five-day Diwali festival, falling today, is of great importance to many Hindus.
It is traditionally believed that buying gold on this auspicious day brings good fortune and luck. This is perhaps the reason why despite rising prices, shoppers in Oman are lining up to buy gold ornaments.
Incidentally, a number of jewellers here are promoting gold sales with attractive offers.
However, jewellers insist that buyers are flocking because of gold's extensive appeal as an investment vehicle.
Power of gold
Rajesh Govindan, country manager, Damas LLC, said in a rapidly changing global economy it would seem few things are more timeless than gold.
"As they say, only gold grows more precious. If you observe you will see that the price of real estate has come down but that gold prices have not been hit. I have noticed that people still believe in the power of gold. That is why you see them investing in gold," says Rajesh.
Jose K.F., regional manager, Joyalukkas Jewellery LLC says despite the price of gold hitting an all-time high, things are looking good.
"It may sound to be unbelievable, but the response to festival shopping has been the same as last year. We continue to receive a lot of bookings. We are sure to receive a lot of customers on Dhanteras," says Jose.
He also believes people think it prudent to invest in gold.
On Tuesday (October 13) the price of gold was RO12.5 per gram. Last year in September the price was around RO10.550 per gram.
Jose also believes that the seemingly astronomical price of RO12.5 per gram is probably just an interim value point on the way to even higher prices.
"By March next, it may touch RO14 to RO15," he says.
"So the gold price that people gasp at today could well constitute an unimaginable bargain next year," Jose adds.
Appreciating value
This is why, Jose believes, that more and more people are buying gold. "They are sure its value will go up," he says.
Though Riyas, manager, Sea Pearls has not had a similar experience, he, too, is hopeful.
"With Dhanteras-Diwali round the corner, we are looking to see good response. But I don't really foresee volumes rising much. Maybe we will see a couple of good days of buying in the coming days," he adds.
According to the World Gold Council, the demand for the yellow metal follows a seasonal pattern. Both Eid Al Fitr and Eid Al Adha are a significant gold-buying occasions in the Arab world, while western world buys it during Christmas.
In India gold buying peaks during the wedding season and at times of various festivals
that vary from one region to another.
By Mrudu Naik
© Times of Oman 2009
