Gold price drop hits Dubai retailers

Gulf News

Gold retailers and investors in the United Arab Emirates took hits on their physical gold holdings and portfolios as the precious metal continued its plunge to the lowest point in 20 months. See more at: http://gulfnews.com/gntv

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00:00The physical stocks which were there is all sold out or it's actually out of stock.

00:17It's not that the retailers are deliberately saying that it's out of stock.

00:21The bars are not coming in from Europe or other destinations which were normally coming

00:26in.

00:27There's a lot of scrap coming in which was earlier transferred into kilo bars.

00:32The scrap is also not coming in from the consumers because of the low prices.

00:37It's not like that.

00:38It's only on 24 carat gold actually that is actually out of stock.

00:42They have it but they don't know the market is quite volatile.

00:44If you see on the jewellery, prices have dropped down, we also have dropped down.

00:49It's only on 24 carat there is a difference on the price.

00:52That is why the sellers are not selling it.

00:55They know if it is a volatile market, the price might go up also.

00:58But in jewellery, if the price comes down, we have to sell it at a lower price.

01:01We can't make more profit on this.

01:03If we don't have it, we say we don't have stock because we don't get the gold bars like

01:08that.

01:09But if we have the stock, we are selling.

01:11But nowadays we are also not getting stock.

01:13So we don't have the stock.

01:14That's why we are not giving to the customer.

01:16It is not like that.

01:17We block the gold and keep it.

01:19If we get from Switzerland, then also we can give to the customer.

01:24Sometimes we have the stock but in my offices.

01:28Usually the customer comes and asks for the late time, so maybe the offices are closed.

01:33So we can't meet the requirement of the customer.

01:36But usually the people don't say that we don't have the stock and we don't want to sell.

01:41Because we are here to sell.

01:42All retailers in the gold souk are facing this shortage.

01:46Even the kilo bars, the TT bars, nothing is readily available.

01:52But it will take time.

01:53I think in a week's time everything will settle down again.

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