MANAMA: Gold traders in Bahrain have dismissed claims that they are hoarding gold bars leading to a shortage in the market.
Bullions remain the popular choice of investment, said a leading jeweller, adding that the falling price of the yellow metal makes it attractive to buyers.
One gram of 22-carat gold was selling at BD20.200 yesterday, down from BD20.600 on July 13; the highest rate in the past one month was recorded on June 20 at BD21.700.
Bahrain Pearl and Jewellers Association treasurer Mohamed Hussain Malim denied claims of a shortage of gold bars in the market.
“Dealers buy and sell gold at prevailing rates, given its volatility. No one can tell what the price will be after 30 minutes. No one wants to take a risk and that’s why dealers always want to sell as much gold as possible to maximise profits, so it doesn’t make sense for anyone to hoard these bars,” he told the GDN.
“The occasional non-availability could be due to logistics or seasonal demand.”
MSS Jewellery owner Sajid Shaikh echoed similar sentiments.
“The supply of gold bars is smooth and normal, other than some shortage during the weekends, as we get the stock from the UAE which has the major refineries,” he said.
“With summer vacation kicking in the smaller bars are in demand as gift items, while people are also investing in gold bars with the price falling.”
Devji managing director Prakash Devji noted gold’s proven role as a “hedge and portfolio”.
“Initially, the price of gold rose when the Russia-Ukraine war erupted but has since seen corrections.
“However, gold has outperformed equities and bonds in dollar terms.”
Joyalukkas business development specialist Sandeep Suresh refused to speculate on the possibility of further gold price declines.
“The price is fluctuating but it is difficult to predict whether it will fall further.”
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