Tourist groups support the movement of markets despite the rise in the price of the yellow metal

Traders: The high price limits of gold stimulate the sale of “used”

226 dirhams, the price of a gram of 24 karat gold.

Photography: Patrick Castillo

Officials of outlets selling gold and jewelry trade confirmed that the continuation of gold prices at high limits, for the second week in a row, motivated dealers to sell used gold artifacts.

They explained to «Emirates Today» that some dealers prefer to sell old models during periods of significant price hikes, and return to buy modern designs when prices fall, in a familiar consumer behavior.

They explained that, despite this, the markets witnessed a demand for the sale of handicrafts and gold coins, with the support of the movement of tourist groups.

And gold prices at the end of last week recorded stability at their high indicators recorded at the end of the previous week, during which they rose by values ​​that reached 8.75 dirhams per gram of various carats, according to the price indicators announced in the Dubai and Sharjah markets.

Dealers said that they tended to sell used goldsmiths, or exchange them for smaller pieces, to take advantage of the price hike differences, and to obtain financial liquidity.

The price of a gram of 24-carat gold was 226 dirhams, while the price of a gram of 22-carat gold was 212.25 dirhams.

The price of a gram of 21-carat gold amounted to 202.5 dirhams, and the price of a gram of 18-carat gold amounted to 173.5 dirhams.

Customer Orientation

Dealer Mahmoud Farid said that he sold two used gold crafts, to take advantage of the large increases in gold prices during the current period, pointing out that he used to sell old models when gold recorded high prices, and then buy newer models at large price drops.

In turn, the trader, Mawadda Hassan, said that she sold two pieces of gold jewelry, and replaced others with smaller pieces, and a modern design, stressing that she took advantage of the price differences to obtain the financial liquidity she needs.

As for the dealer, Muhammad Fakhri, he mentioned that the current gold prices are motivating to sell used crafts, which made him tend to sell more than one piece of old crafts, to take advantage of the high price limits for gold, indicating that he buys again in the event that prices return to decline.

Selling "used"

In addition, the director of the "Diamond Jewelery" store, Dilip Soni, said that the markets have recently witnessed remarkable activity in the demand of a number of dealers to sell used gold jewelry to the stores, to benefit from the continuation of prices at high rates, and to obtain financial liquidity.

He added that he noticed that some dealers changed their purchasing plans, and now prefer to sell old models, and wait until prices go down, to return to buy artifacts of modern models and designs.

He pointed out that some dealers also tended to buy gold coins of small and medium weights, in anticipation of the continued rise in gold prices during the coming period, affected by the inflation situation in major global economies.

Tourist groups

In the same context, the manager of the “Machoom Jewelery” store, Raj Bahi, said that despite the continuation of gold prices at high rates, and the demand of dealers to sell their used gold crafts to stores, the markets continued to record activity rates on the purchase of new works, supported by the growth of Demand by tourist groups.

He stressed that the markets have also witnessed a state of demand for gold coins, which are suitable as an alternative to gifts of crafts, and at the same time are suitable for investment and saving, with a number of dealers hoping for the continuation of price increases at greater rates during the coming periods.

consumer behavior

As for the manager of the “Baghdad Jewel and Jewelery Trade” store, Intisar Ward, he attributed the sale of a number of dealers to the second-hand works of the stores, to the consumer behavior of these dealers, represented in selling old models during times of large price hikes, and returning to buy modern models in the event of a decline in gold prices Motivating rates, pointing out that the continuation of gold prices, for the second week in a row, at high rates, motivated some dealers to this behavior.

• Selling old models during periods of price hikes is a consumer behavior.

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