A New Gold Rush has started!
Shops in Abu Dhabi are reporting a 300 percent increase in the buying gold. One Jewelery shopkeeper reported selling over 5 kilos of gold coins and gold bars in just a few hours.
All since the price of gold has dropped by just 15 Dh per gram.
Most of the customers were shopping for Eid Al Fitr and Onam, a festival of Keralties which ended on Thursday but many were reported as buying gold for investment purposes expecting the price of gold to go up fairly soon according to a reporter from the Khaleej Times.
Coins sold out fast as customers rushed the shops to buy whatever gold coins and bars they could.
According to Sheejan Thomas, the manager of Joy Alukkas Jewellery at Hamdan in Abu Dhabi, “We have done over 200 per cent more business this time as compared to the same time last year. The reason is obvious: low prices. Residents are purchasing both 22 and 24 carat gold for investment and wedding purposes. We finished our stock of gold coins and biscuits in two days.
“We have mostly Asian customers, particularly from India. As Asians crave for 22 carat gold jewellery, we deal in them only. We don’t sell 24 carat gold jewellery.”
A cashier at Pure Gold in Dubai’s oldest gold market, Uzair Alam, stated, “For the past three days, our shops have been completely packed with customers purchasing jewellery.” He went on, “In Dubai, our business has been all-time high, reaching over 300 per cent as compared to September last year. People are purchasing jewellery as if they are being given free.”
And Cushar Patni, manager of Ajanta Jewellers in the capital, confirmed, “We made 200-300 per cent more business than the same period last year. “This is because of the low prices of gold. We don’t think the prices will go down further. They are, in fact, going up gradually. Many people are purchasing gold this time for investment purposes.” He said.
It seems the fast east market has a lot of faith in the gold price going up. Either that or they know something we don't.