Gold sales drop by 30% in Omani market

Oman gold demand drops again sharply as shoppers turn extra sensitive to high prices

Muscat: A number of gold traders and shop owners in the Sultanate of Oman confirmed that the rise in gold prices since the beginning of this year until now is due to geopolitical and financial reasons.

The traders said that the continuous rise in the price of gold has led to a noticeable dip in the purchasing activity in the gold markets in the Sultanate of Oman, which has contributed to a decline in sales of gold jewellery, causing a burden on traders and shop owners in this field.

Mohammed Amin bin Adam Al Sayegh, owner of a gold shop in Muttrah Souq, said: The rise in gold prices in global markets is a result of geopolitical conditions and the large fluctuations in financial markets.

He told Oman News Agency that the price of a gram of gold without workmanship rose from about OMR 22 at the beginning of 2024 to  OMR 27 per gram currently, leading to a decrease in purchasing activity, although the wedding season in the Sultanate of Oman began about two months ago.

He pointed out that as a result of the rise in gold prices, some people have turned to buying silver and gold-plated jewelry instead of gold, which has affected the owners of gold shops and traders in the Omani market, indicating that the percentage of decline in gold sales in the Omani market has reached 30 percent during the past months of this year.

A trader, Sadiq Bin Dawood Al-Sayegh said: The price increase came as a result of speculation in the markets of producing and importing countries, the conditions in the Middle East region, and the control of some commercial investors over gold prices.

He believes that other reasons that contributed to the rise in gold prices in the Sultanate of Oman are the value-added tax and manipulation of prices and the quality of gold by some owners of unlicensed gold workshops have also contributed to the lack of demand for gold since the beginning of the year until now, he said.

He pointed out that gold prices will witness further increases in the coming period as a result of the current conditions in the Middle East region and the upcoming US elections, noting that it is expected that the price of a gram of gold without workmanship will reach OMR 30.

He said that there is no doubt that the rise in prices in the coming period will contribute significantly to the decline in gold shops sales in the Omani market, which will lead to gold financial losses to traders.

Qais bin Abdul Hamid Al-Sayegh, a gold merchant, said: “The gold markets in the Sultanate of Oman in the past witnessed strong sales to meet some obligations and for special needs.”

He stressed that the continuous rise in gold prices is likely to affect shop owners and merchants, and buyers may seek other sectors for investment.

Khalifa bin Abdullah Al-Mandhari, one of those interested in buying gold, said: “Gold prices have been on a continuous rise since 2005 until now, and the price of a gram today has reached more than 27 Omani riyals, in addition to the tax imposed on buying gold, which has contributed to the decline in gold buying.”

Mansour bin Rashid Al Ya’arubi, Senior Laboratory Technician at the Precious Metals Laboratory at the General Directorate of Specifications and Standards at the Ministry of Commerce, Industry and Investment Promotion, said: The Directorate is making great efforts to monitor gold markets and workshops in the Sultanate of Oman to prevent tampering with quality and prices.

He stressed that there are continuous inspection campaigns on gold shops and workshops to ensure the quality of the displayed jewellery in terms of the presence of the stamp and its special seal, stressing the need to verify the daily price of gold displayed on the screens in the shop with the presence of the stamp and seal that indicate the type and quality of the gold.