Following record high prices for gold and silver in the global market, the situation is changing in the Saudi gold market as well, with repeated rises and falls, raising concerns around the world. Yesterday (Saturday) Okaz toured several precious metals markets in Jeddah.
Mr. Okaz observed the various positions of those who want to buy gold and those who do not, as the prices of gold and silver have risen to unprecedented levels. Many customers said they came to the market to sell gold jewelry because they needed financial liquidity. Some respondents said they had withdrawn from purchasing at this time due to rising prices. However, some people say that they went to the gold market because they had to buy gold jewelry, such as rings, in order to give gifts that were important to them in social situations. They explained that only “hand chains” can be purchased for this purpose, and their price is considered low compared to a set of gold jewelry. The price of one ounce of gold reached 5,818,777 riyals and the price of 1 gram reached 603.37 riyals in Jeddah market (Friday). One kilogram of gold was sold (Friday) for 607,266.97 riyals.
Salah Al Amari, an investor in the gold sector, told Okaz: “Gold prices are expected to continue to rise compared to the current price over the next six months.” “There is also the possibility of sudden price corrections due to economic factors affecting the gold price,” he said. He said customer demand for gold and silver bullion increased by about 70%, leading to the stagnation in the gold jewelery market due to the abnormally high price of gold. Salah Al Anmari, an investor in the gold sector, analyzes that customers are interested in purchasing gold bullion. This is because gold is good for saving, but it is risky. Gold is a powerful commodity and is considered a safe asset for everyone, and central banks and international banks are known to save and invest in gold as it is an economic force. Regarding the price of gold, he said that since it is not possible to set a specific price, the current price fluctuates from moment to moment, but it is expected to be more than 500,000 riyals per kilogram of gold. He explained that customers tend to sell gold when they need cash, and gold jewelery is also often sold, noting that the rise seen in the gold sector has reduced gold sales by more than 70% at an estimated rate, but those with purchasing capacity accept it because gold has not lost its value since ancient times and is considered better than cash for them. Al Amari advises clients to keep a portion of their cash balance in gold and not sell it unless there is a good investment opportunity as an alternative to gold. He said a rise in gold prices is still expected this year, indicating that it is better to save gold, but stressed that the rise in silver prices is due to its low availability, not because it is a safe-haven asset like gold. He stressed that bullion is better than the pound. This is because it is taxed and this is a major reason for the decline in demand for jewelry with the continued rise in standard gold.
Following the record rise in gold and silver prices in the world market, the situation in the Saudi gold market has changed, rising and falling repeatedly, causing concern around the world. “Okazu” conducted a tour yesterday (Saturday) in several markets of precious metals in Jeddah.
Okaz observed that the stance of those wishing to purchase gold varies, with some people hesitant to purchase due to the unprecedented rise in gold and silver prices. Several customers said they came to the market to sell gold jewelry because they needed cash. Some people said they were refraining from purchasing at the moment because of the high price. However, some people visited the gold market because they needed to buy gold items such as rings as important gifts for social occasions. They revealed that the most that could be purchased for this purpose was a “hand chain”, which would be considered cheaper than a set of gold jewelry. The price of gold in the Jeddah market on Friday was 5,818,777 riyals per ounce. The price per gram was 603.37 riyals. One kilogram of gold was sold for 607,266.97 riyals on Friday.
