Gold, Diamond Prices Too High This Eid, Christmas Holidays

By Ben Garcia, Kuwait Times

Dec. 18–KUWAIT — Souk Al-Dahab ‘Gold Market’ was surprisingly not as busy as expected during the last couple of days before the Eid Al-Adha festivities in what gold sellers attributed the slump in business to the skyrocketing prices of gold in the world market. Yesterday’s rates ranged somewhere between KD 6.400 — KD 6.750, per gram, for 22 carat gold, while 21 carat was priced at KD 6 — KD 6.500 (per gram). The usual sales of gold during the Eid and Christmas holidays usually soar to considerable levels since gold has always been part of a personal ‘favorite gift’ for loved ones, but according to gold owners here, this trend sadly, has drastically changed.

This Kuwait Times reporter visited two gold souks in Kuwait City, one located at the Watiya Complex and the other at the Souk Al-Mubarakiya. Both markets were busy and many seemed to be actually eager to do some purchases but after learning of the soaring prices, left empty-handed and dejected.

Considering the prices, we are not as optimistic in making sensational sales as compared to last year. The turnout was disappointing, nonetheless, we are expecting more customers either today or tomorrow, through early next year,” said Kumar, a gold salesman at the Watiya Complex.

A notion of widespread gold-related spending especially during the Eid or Christmas holidays has always been a known fact in Kuwait, but unfortunately, many in the gold market noticed the difference. “Many people know the unstable fluctuation in gold prices. We don’t know what the rate would be tomorrow, but KD 6 plus price for one gram of gold has been steady for months. Yesterday it was a little cheaper. A wait-and-see attitude is what gold buyers are toying with at the moment which can be felt right thr ough as they wait and hope for gold prices to decrease,” Kumar added.

A female shopper when asked whether she still expects to receive gold jewelry as gifts despite the increase, said, “While I consider gold as not just mere decorations but in terms of investment, I think, it’s not prudent to buy now. The price could change anytime, and it’s better to wait. The gold prices could change right after the holidays…who knows?

Gold in Kuwait is mostly imported from India, Dubai, Saudi Arabia and Italy. Many of the customers are expatriate Indians who consider gold as a solid investment. Kuwaitis despite their economic and financial status, prefer to buy the 21 carat variety than 22 carat, but Indians, Filipinos and Sri Lankans prefer to invest in 22 carats.

Besides gold, diamonds are also part of a common gift presented to loved ones, but even the price of diamonds have been continuously on the increase nowadays. Last year, according to one salesman, one could afford the smallest sized diamond somewhere between KD 35 — KD 40, but now, even if you can afford to spend somewhere between KD 50 — KD 60, for a similar sized diamond, you won’t be able to buy one.

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