JEDDAH: With the price of gold skyrocketing and no immediate signs of it coming down, people wanting to buy gold for their immediate needs are in a dilemma to buy then how to buy.
The prices in the market makes it nearly impossible for people with an average income to afford gold.
For these people, some of the gold jewelers have come up with a solution gold on installment.
The process is simple, and the gold bought by the customer is kept in trust with the shop owners till the amount is paid.
"I'll soon be getting married, and I was worried by the fact that without buying any gold, how could I get married? Since traditionally a bride must have some new gold, but it has become so expensive I can't afford it," said Alya Ebrahim Meshary.
"But this new scheme is helpful. Now I'm going to buy gold on installment, so that by the time my wedding date nears I'll have purchased the new ornaments," she said.
Fahd A. Al-Ghamdhi, who has a gold jewelry shop, said he sells any gold item whether it's a ring or a gold set on installment. "The customer doesn't have to pay installments on a monthly basis. They can set it up to pay on weekly or even daily. And neither is the amount fixed, some customers pay a down payment of SR500, and then if they get some more money they come and pay SR1,000 or more until they pay the full amount the gold item is worth," he said.
The selected gold item remains with the shop owner until it is paid for in full, then the customer can take it. Al-Ghamdhi added that he doesn't sell gold on installment when the Arabic lunar calendar is approaching a new year. He said that's the time when he has to account for all sales done during the year. He said only in the beginning of the lunar calendar he sells gold on installment so that there is ample time for a customer to pay the full amount before the year ends.
Though many customers, who can't afford to immediately pay for gold jewelry, are opting for installment, there are others who prefer to buy gold from jewelers who normally sell silver.
Umm Abdul-Kareem said she has stopped buying gold from shops that specialize in gold and instead buy gold items from shops that specialize in silver jewelry because she can get it at a better price.
© Arab News 2011
