Thursday, December 26, 2013

Drop In Gold Fuels Buying Frenzy

JEDDAH – The gold shops in Jeddah are now flourishing as more customers are buying various gold types thanks to the international drop of gold prices.

Saleh who works in Al-Amari gold shop said that more people are now buying various gold jewelries and others are buying gold bullions to store their money after staying away from gold for quite sometime.

According to him various nationalities are approaching them including Saudis, Africans and Indians. The prices he said range from SR165 to SR140 per gram based on the item being sold. The price is set based on any additional work or jewelries being added. The country where the gold comes from also determent the price, “We have Italian Indian, Bahraini, Korean and local gold creations each with a distinct price,” said Saleh.
Dropping gold prices sounds like deflation, yet the most populated nations in the world keep buying! Ask yourself if gold is such a "unimportant" asset to own then why do so many people in the world keep buying it while prices are declining? Investing 101: Buy Low - Sell High. Over half the worlds population knows that owning gold protects you from inflation, yet in the west we ignore this axiom and chase yield. Why? The paper game will end badly for most and in the end "he who holds the gold makes the rules," period, end of story!   BK