Gold sales down in Kuwait
Gold sales in Kuwait are down, decreasing at least 50 percent compared to the same period in 2009 due to the hike of gold price.The second half of 2010 was the phase with the biggest drop of sales due to the start of the summer holiday, the travel of many people, and the closeness of Ramadan, seasons that are considered a priority by many people.
Observers told KUNA in separate interviews that the hike of gold price was expected to continue and that it was possible that the price doubles.The recent slight decline of gold price did not increase trading because the price had reached a record level.
Jewellery trader Saad Al-Mahni said that the market was inactive not because of the increase of price, but because of the summer season.He noted that the income nowadays does not usually exceed KD 300 per day.In 2009, the income reached KD 600 per day, he added.The increase of price comes after the decline of the dollar, he said, adding that the price could be better of the dollar’s value improves and the US economy in general revives.
On his part, jewelery trader Toni Brikel said that gold sales were down due to the increase of price, despite the slight decrease last week.Sales decreased by 50 percent compared with the same period in 2009, he pointed out.People usually buy gold from March to June, he said.They sell gold in September and October usually as they need cash for the schools season, he added.
Fifteen years ago, the price of one gram of gold did not exceed KD 2.250, but the price reach KD 9.700 per gram, he said.Nowadays income is no more than 200 gram per day, while it was about 500 grams in 2009, he noted.He said he expects that gold trades will continue to decrease because it was expected that the price of gold will go up further more.
However, others expect that the price of gold will drop by 40 percent in the next five years.
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