The precious yellow metal that used to attract throngs of buyers to jewelry shops around the Kingdom seems to have lost a bit of its luster at the Batha Gold Market in downtown Riyadh. The market, which houses over 100 gold shops, was recently seen to contain only scanty stocks of gold bangles, rings, chains and other jewelry items. Shop owners here used to display a large variety of gold jewelry in wall-mounted shelves. Today, the half empty showcases suggest that that practice is now a thing of the past. According to a salesman at Zumarudda for Jewelry, merchants have reduced their investment in gold jewelry because of the high price of gold in the international market. “Due to soaring gold prices, merchants are investing very cautiously in this business. Some open a shop at a different location by taking half of their investment from an existing gold shop. For instance, a SR10 million investment in one shop is now divided into two by opening a new shop,” he explained. Showcases that used to display a large variety of designs in bangles, bracelets, rings and other gold ornaments now have only a small number of models from Singapore, Dubai and India besides Saudi Arabia. Salesmen at these shops display little enthusiasm and are mostly seen standing idle outside their shops, entering only when they see a potential buyer. Imran Khan, an Indian who visited the Batha Gold Market from Abha to buy some gold bangles, said it is usual for him to buy a gift for his wife when he goes on vacation. He said he is going home after five years and wanted to buy a present for his wife. “But this year it is almost impossible for me to buy anything,” he said, referring to the high price of bangles and other jewelry. Despite inflation, he said, he had managed to save some money to buy gifts for members of his family. He recalled that five years ago when he bought bangles, the price of gold was SR60 per gram, but now it is SR130. Muhammad Amjad, another Indian accompanied by his wife, said last year when the couple bought bangles the price of a gram of gold was SR109. Now it is between SR125 to SR130 depending on the design and manufacturing charges. “Even an increase of SR200 per 10 grams affects our budget,” Amjad said. Shopkeepers acknowledge the changing trend saying that foreign workers going on vacation used to buy a lot of jewelry. Today they buy, but not like before, said Muhammad Nayeem, a salesman at a gold shop. However, the wedding season in Saudi Arabia, which is one of the world's top 10 gold-consuming countries, has always helped business, as many customers buy jewelry for the occasion, he added.
