Hajj season accounts for 25% of Saudi Gold sales
It is estimated that they account for 25 percent of the gold and jewelry sold in Saudi Arabia each year.
RIYADH(BullionStreet): As millions of pilgrims began their return journey in batches after the holy Hajj, it is estimated that they account for 25 percent of the gold and jewelry sold in Saudi Arabia each year.
According to Council of Saudi Chambers, many pilgrims want to commemorate their journey with keepsakes or gifts for relatives that carry a special religious significance.
The Chamber said pilgrims also find the gold jewelry to be cheaper, better quality and more elaborate than what is available at home, creating a thriving annual market for the precious metal.
However, gold dealers in Saudi Arabia have warned buyers against buying potentially adulterated gold promoted by illegal vendors, who visit the kingdom during the Haj and Umrah seasons when demand for the precious metal increases.
Saudi Arabia's Ministry of Trade and Industry has begun monitoring gold sales outlets across the Kingdom after complaints from customers of variances in weighing in sales and purchases.
Observers said Saudi Jewellery owners had been complaining about low demand for gold and difficulties they face are looking for ways to boost the market. The traders also object to the inequality between Saudi traders and foreign investors in the gold market.
Despite all these negative factors, gold sales in the Kingdom is expected to climb this season as Saudi gold market always benefited by special seasons like the Hajj and Ramadan, which are known for boom in gold sales.
All jewelry shops in and around the Grand Mosque are filled with pilgrims buying gold before their return journey.
Indian designs are favorite among Asians and Africans while Middle Eastern designs were favored by locals, analysts said.
Most of the jewelry is manufactured in Jeddah from 21-carat gold, while pieces with Indian designs are imported through Dubai.
Unlike the white gold studded with diamonds and precious stones on display in Dubai’s glitzy shopping malls, gold in Makkah’s markets hardly has any additions which is more attractive to customers who buy it as an investment.
Sumber : Google