A drop in gold price and “February 14” celebrations have aided gold sales locally with Doha-based jewellers seeing “reasonable sale” in the last few days.
Gold closed at QR186 for 22-carat yesterday, down by almost QR4 compared with last week. 24-carat gold closed at QR199 yesterday compared with QR204 last week.
Ten tolas (116gm) were priced at QR23,200 at the close of business yesterday compared with QR23,800 last week.
Besides gold biscuits, bars and coins, diamond and pearl ornaments also saw buyers last week, an industry source said. However, finished gold jewellery had greatest demand across shops in the country.
“This is clearly due to the ‘February 14’ celebrations”, he said.
Gold still maintains a ‘safe haven’ status and has greater relevance at a time of global economic turmoil. But the recent Indian decision to curb gold imports to the country by way of tax increase has had “some impact”, a jeweller said.
Indians are the highest per capita consumers of gold worldwide followed by Chinese, the World Gold Council says.
A J Joju, regional manager (Qatar) of Joyalukkas Jewellery said he did not think the Indian government proposal would adversely impact gold trade in Qatar.
He said there was still demand for gold bars - from 1gm to 116gm, with the bullion remaining a ‘safe haven’ for many discerning investors.
He said diamond and pearl jewellery are also ‘gaining acceptance’ in the local market with international certification and exchange offers becoming ‘incentives’ for discerning buyers.
Many jewelleries in the country have displayed diamond and precious stones cast mainly on 22-carat gold. Diamond and precious stones are studded on 22-carat gold for durability.
“A majority of customers buy gold ornaments, but many now accept diamond and pearl jewellery mainly because of relatively higher gold prices,” Joju said.
“This is an emerging trend. Diamond customers are now assured of quality certification from the International Gemological Institute,” Joju said.
IGI-certified diamond-studded jewellery is finding many buyers these days, according to traders. It is also accepted by jewellers on ‘exchange offer’, but subject to specific terms and conditions, an industry source said.
Traditionally, the GCC markets are seen the “best place” to buy gold because of the ‘guarantee’ on quality.
Governments across the GCC region have mechanisms in place to ensure gold quality. 18, 22 or 24-carat in the GCC means they are of the same quality and that customers are not overcharged. This is not guaranteed in many other markets. Also, the Gulf markets provide an extensive range of finished jewellery to choose from.
