Fatima Muhammad

Saudi Gazette

JEDDAH — The price of gold dropped in the past week in what is considered the sharpest drop in the past 16 years. Financial analysts consider this development as a result of the crisis in the European Union. However, this is also considered a great period for personal savings and investments, as well as increased competition among gold shops.  Media reports confirm that gold prices are not expected to drop bellow $1,000 an ounce.



Abdullah Al-Ammari, the CEO of Salim Hassan Al-Amari and his brother's company, said that the local market has witnessed an increase in demand for 50 and 200 grams gold bullions. He noted that the drop in prices is a great opportunity to make savings as an investment.



He further said the high demand includes not only the gold bullions, but for other gold-related jewelries including bracelets, necklaces and rings thanks to the wedding season. However, he noted that they have not documented great demand from Umrah and visitors due to the current political unrest in the Arab region.



Nonetheless, he does not expect that the drop will continue and noted that these are regular fluctuations that will not affect value of gold.



Mohammad Musfir, a member of the local committee at the Saudi Chamber of Commerce and head of chief of jewelry traders in Najran, said that the demand in his region for gold bullions has increased by 30%, the highest in the region, he claimed.



Ahmad Al-Sharif, CEO of Al-Sharif Ahmad Company, operating in the central area in Makkah and Madinah said  they are not relying on the demand of pilgrims because of the drop of number of pilgrims, and the political unrests in the region. They do not rely much on local products due to the high costs, and instead import their products from India, Korea, Turkey and Italy.