Muscat – Gold traders and shop owners in Oman have reported a significant drop in sales due to the price of gold continuing to rise since the beginning of the year. The increase in prices is attributed to geopolitical and financial factors, leading to a noticeable decrease in purchase activity.

Mohammed Amin bin Adam al Sayegh, owner of a gold shop in Muttrah Souq, cited “geopolitical conditions and large fluctuations in financial markets” for the rise in prices in global markets.

He noted that the price of a gram of gold has risen from about RO22 at the beginning of 2024 to RO27 currently, which has decreased purchase activity even during the wedding season.

Mohammed informed that some customers are opting to buy silver and gold-plated jewellery instead, affecting gold traders significantly. In his estimation, gold sales in Oman fell 30% in the last few months.

According to Sadiq bin Dawood al Sayegh, another gold trader, the situation in the region and influence of commercial investors have led to the price rise. He included value-added tax (VAT), price manipulation and the presence of unlicensed gold workshops as contributory factors for the reduced demand for gold.

Sadiq predicts gold prices will continue to rise – likely to reach RO30 per gram – due to the current situation in the Middle East and upcoming US elections. “This increase is expected to further reduce sales and cause losses for gold shop owners.”

Qais bin Abdul Hamid, another gold merchant, noted that while some engaged in the business are struggling to meet obligations even as others desperately anticipate a price drop, the situation is pushing shop owners and traders to consider alternative economic sectors.

Khalifa bin Abdullah al Mandhari, a regular gold buyer, said, “Gold prices have been on a continuous rise since 2005 to more than RO27 per gram today. This has led to a decline in gold purchases due to low individual income and the tax imposed on gold purchases.”

Umm Yazan al Ameriyyah cited low individual income, high prices, tampering with quality by some gold merchants, fraud by unlicensed workshops and lack of new jewellery designs as reasons for the drop in gold purchases.

Mansour bin Rashid al Ya’arubi, Senior Laboratory Technician at the Precious Metals Laboratory of the Ministry of Commerce, Industry and Investment Promotion’s Directorate General of Specifications and Standards, said significant efforts are made to monitor gold markets and workshops in the sultanate to prevent tampering with quality and prices. Inspection campaigns conducted by the directorate ensure quality of jewellery, including mandatory stamp and seals indicating the type and quality of gold.

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