Low carat gold jewellery lures Gulf Arab buyers
By Summer Said
DUBAI (Reuters) - Gulf Arab buyers, hit by rising prices, are shunning 22-carat gold in favour of lower quality grades of the metal for jewellery, traders said on Monday.
Gulf Arab women, traditionally vigorous buyers of high quality, glitzy heavy jewellery, are shifting to 18 carat alloy, used often in western designer pieces.
"Many of the women here are not keeping the gold for (a) long time," a Dubai trader said. "They just want something that looks valuable and nice to wear, and because of high prices they prefer lower quality gold as it is more affordable."
Gold rose to $891.40/892.40 an ounce on Monday, from $886.90/888.30 an ounce late in New York on Friday, as surging oil prices boosted the metal's appeal as a hedge against inflation.
But gold has lost more than 13 percent in value since spiking to a lifetime high of $1,030.80 an ounce on March 17 and has been struggling to regain $900 an ounce.
"Some people think gold is cheaper here compared to the rest of the world, but when they actually get in the shops and ask about prices, they become reluctant to buy," said Pradeep Unni, assistant vice president of Vision Commodities Services.
"Many are now buying 18 or 14 carat gold lighter jewellery pieces ... and sometimes the younger generation would go for gold-plated jewellery," he said.
According to the industry-funded World Gold Council, gold demand in the Gulf Cooperation Council (GCC), a loose gathering of Arab states, stands at about 260 tonnes a year. Continued...




India
US
UK












