Jordanians rush for gold as price tumbles
Jordanians have purchased over 500 kilos of gold over the past two weeks following a sharp dip in the prices of the precious metal on the global market, according sector leaders.
Jordan Jewellers Association’s secretary, Rebhy Allan, told The Jordan Times over the phone on Wednesday that gold prices on the domestic market went down by a “record” JD5 ($7) per gramme over the past two weeks.
Allan estimated the value of the quantity of gold that was sold over the past two weeks at around JD18 million ($25 million).
“Gold prices had been on the rise for five years, and this is the first time the metal’s value has seen such a sharp fall,” he added.
Gold has fallen to its lowest level in two years in the last few days amid fears that cash-strapped countries in the euro zone would need to sell off their reserves, as Cyprus is expected to do so, to raise 400m euros. However, the amount it garners from the reserves will drop if prices keep falling.
According to the global market index, the price of gold by the ounce has fallen by nearly $200 in the last two days, making it now cost to below $1,400. This is first time this has occured since February 2011.
Concerns over economic recovery in the US and China are also blamed for the sharp decline in prices.
Allan indicated that there has been a large surge in the number of buyers at jewellery stores, and she expects the rising demand to continue as the summer wedding season is approaching.
He indicated that the Kingdom’s gold importers have increased their orders so as to meet this surge.
On Wednesday, Allan said the price of 24-karat gold stood at JD32 ($45) per gramme on the local market, while 21-karat gold was priced at JD28.2 ($40) per gramme, and 18-karat gold was worth JD24 ($33) per gramme.
On the international market gold was last traded at $1,372.85 an ounce, according to Reuters.