Traders: Demand for selling "used" gold to take advantage of price increases
A gradual return of tourists gives markets optimism and boosts gold sales
Gold prices recorded highs at the end of last week, ranging between one dirham and 1.25 dirhams per gram. ■ archive
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Officials of selling outlets for the gold and jewelry trade expressed optimism about the movement of sales and market activity, confirming the improvement of the indicators of buying new gold jewelry, with the return of tourist groups to the markets.
They confirmed to "Emirates Today" that the markets also witnessed a remarkable turnout by dealers to sell used gold crafts, to take advantage of the high prices and obtain financial liquidity at the beginning of the school year.
Gold prices recorded, at the end of last week, limited increases, ranging between one dirham and 1.25 dirhams, for grams of various calibers, compared to their prices at the end of the previous week, according to price indicators announced in the Dubai and Sharjah markets.
gold prices
In detail, the price of gold recorded, at the end of last week, increases in its value ranging between one dirham and 1.25 dirhams per gram of various carats, as the price of a gram of 24 carat gold reached 235 dirhams, an increase of 1.25 dirhams, compared to its prices at the end of the previous week.
The price of a gram of 22 carat gold was recorded at 220.75 dirhams, an increase of 1.25 dirhams, while the price of a 21-carat gram reached 210.75 dirhams, an increase of 1.25 dirhams, and the price of a gram of 18 carat gold reached 180.5 dirhams, an increase of one dirham.
Dealers movement
The client, Suad Al-Sayed, said that she sold two used gold artifacts in order to obtain financial liquidity, stressing that registering gold at high price limits encouraged her to sell. In turn, the customer, Ahmed Samih, considered the current time suitable to sell used gold jewelry, and to use its value to pay the obligations of the new school season, whether related to the first installments of schools, or the purchase of school and home supplies.
For his part, the dealer, Mohamed Abdel Qader, confirmed that he preferred to sell used artifacts of old models with his family now, to take advantage of the high price limits of gold, provided that they be compensated by buying new gold artifacts when the gold is recorded at low motivating price rates.
Used artifacts
In addition, the manager of the "Fine Jewelery" store, Kalash Kumar, said that the markets had recently witnessed a turnout of dealers to sell their used gold jewelry to stores, with the aim of taking advantage of the high price limits of gold and obtaining financial liquidity to pay off school and family obligations. He confirmed the existence of limited purchases on the new gold jewelry, for family occasions related to marriage.
Limited improvement
For his part, Director of the "Al Matrooshi Jewelry" store, Deep Rajesh, agreed that the high prices of gold, currently, have stimulated a number of dealers to sell some of their used gold crafts, especially as it keeps pace with the current period of the beginning of the new school year, and that families are directed to provide adequate financial liquidity to repay Multiple financial liabilities related to the season.
He added that the markets also witnessed a limited improvement in the purchase of new gold jewelry, despite the recent price increases, with the support of a gradual improvement in the movement of tourists, and the purchase of gold by residents for family occasions such as marriage.
Financial liquidity
As for the director of "Dehkan Jewelry", Jay Dahkan, he said that the desire of a number of dealers to sell their used gold artifacts is related to the factors of high prices, and the desire of some dealers to obtain financial liquidity before the new school year.
He stressed that the positive phenomenon in the markets during the current period is indications of improvement in the purchase of new gold jewelry, with the gradual return of tourist groups to the markets, and purchases from stores, in addition to the preference of some residents to hold weddings during the coming period.
Gold is rising globally
Gold rose about 1%, yesterday, at a time when investors held on to signs of an easing policy, issued by the Chairman of the Federal Reserve (US Central Bank), Jerome Powell. Gold rose in spot transactions 0.9% to 1946.55 dollars an ounce, after gaining about 0.4% since the beginning of last week, after losses it incurred for two consecutive weeks. US gold futures rose 1.1% to $ 1954.1. Gold usually benefits from low interest rates, as it reduces the opportunity cost of owning the yellow metal, which does not yield a return, and puts pressure on the dollar. The high incidence of Coronavirus cast doubts on the rapid recovery of the economy, and stimulated central banks to reduce interest rates and ease monetary policy, which helped gold to rise by about 28% since the beginning of 2020. As for other precious metals, silver gained 1.3% to 27.4 dollars an ounce, and it is heading towards a rise for the second week in a row by 2.3%. In turn, platinum rose 0.4% to 932.58 dollars, while palladium rose 1.1% to 2184.21 dollars. Capitals ■ Reuters