Investors and ‘blingholics’ across Bahrain are clamouring for more gold as prices globally dip.
Jewellers are struggling to meet the growing demand for the precious metal in local markets due to supply chain disruptions as a result of the regional Iranian attacks.
Demand has surged as a result of falling gold prices with investors, it appears, keen to splash the cash.
“We have almost no stock for gold or silver in the market,” GCC Gold and Jewellery Association’s Bahrain chapter’s adviser Mohamed Mualim told the GDN. “Since most of our gold usually comes from Dubai, and the current situation has closed the airspace, we have now had to rely on whatever comes through Dammam.”
The GDN previously reported that a temporary mechanism for logistical transit was launched by the Executive Council of the GCC Customs Union Authority, streamlining movement of goods between GCC states, however, priority is given to essential goods, such as food, medical supplies and perishable items.
According to Mr Mualim, jewellery and gold are not covered under the logistics fast track route.
“And, in Bahrain, paper gold is not a very popular alternative, since people prefer to have the physical asset in hand,” Mr Mualim added.
Another jeweller, Ketan Kansara of Kansara Jewellers, said suppliers were demanding a premium. As an example, he noted that gold which might previously have been transported for up to BD20 is now costing more than BD70 - a more than three-fold increase.
“They have to use more complicated supply chains so they are charging more and, since there are only a handful of gold suppliers and many gold shops, the prices are inflating,” he explained.
According to foreign trade data published on Bahrain’s Open Data Portal, the kingdom imported BD23.7 million in gold ingots and BD11.3m in jewellery from just the UAE in January this year.
In Q4 last year, gold remained one of Bahrain’s top imported goods, comprising 5pc of the total value of imports.
Around BD74m of gold ingots were imported in the last quarter of 2025.
Globally, gold prices dropped sharply on Thursday, pulling back from two-week highs, as oil prices surged after US President Donald Trump vowed continued attacks on Iran, fuelling global inflation concerns.
During the conflict, gold has underperformed as a safe-haven asset, with prices falling roughly 10 per cent since March.
Gold typically performs well during economic uncertainty when investors buy the safe-haven asset while stocks fall, inflation rises, or geopolitical crises occur.
It usually sees price surges during economic downturns, recessions, or when fiat currencies are under pressure, providing a hedge against volatility.
Despite this, gold has faced pressure from a strong dollar, rising interest rates, and a shift toward momentum-driven trading during the Iranian conflict.
In Bahrain, low gold prices usually spur local purchases, since it is perceived as a safe investment vehicle, especially amongst Indian expatriates.
However, Mr Kansara noted that most expatriates are now holding onto their gold, while some have been selling it to pay for expenses and rising air ticket prices, or carrying it through Saudi Arabia if they are flying back home.
When entering Saudi Arabia, visitors are required to declare their gold if its value exceeds BD6,000.
Mr Mualim noted that he expects the market to return to normal once the conflict ends.
naman@gdnmedia.bh
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