Gold traders in Jeddah and Makkah, Saudi Arabia are lamenting about the low demand for gold along with difficulties they are faced with to boost the market. They are also opposing the blatant inequality between foreign and local traders.
Saudi’s gold industry is still suffering from high prices that lead to a large number of layoffs and closing down of shops.
Employees and investors in the gold market are among the worst hit after the slump in the gold sale brought about by high prices.
Local traders are barely surviving in the gold market because of many obstacles and remarkably low sales.
The pressure being placed on Saudi gold participants is way higher when compared to what foreigners are getting. Local gold traders are calling for equality between Saudi and foreign investors in terms of rights, duties and benefits. They reportedly face some problems dealing with government policies. Legally speaking, foreign investors get advantages of smoother processing and better services.
Gold sales in the Makkah area are really weak inspite of the increase in gold demand during the Haj and Umrah seasons.
They said they are attempting to salvage the gold sector in Saudi through providing more resources to local gold traders. Aside from that, they are also looking to re-establish a traditional gold market in Makkah that could possibly revive the morale of Saudi traders and better the sales of local gold items.
Competition in the gold market has become even more strained because of the favor that foreign investors are obtaining in available resources in Saudi.
More often than not, foreign investors get the resources to build their own firms and deal with competitive foreign employees. In addition, they are also in contact with many experts in the jewelry and gold sector.
On the other hand, Saudi traders are being forced to implement full Saudization and make do with employees who are still new in the field and generally lack creativity.
Saudi gold traders are obliged to leave the market due to a number of factors like stiff competition with foreigners, policies that favor foreign investors who work in the gold industry and high gold prices.
He called for a conference that will bring together all the gold traders in Saudi in order for them to find resolutions to the crisis in their industry and to be in equal footing with foreign gold investors.
Farsi said that one of the main factors affecting the rise in gold prices this year is the consumption increase in China; though he thinks that Makkah gold market will continue to slow down. Such increase in sales on the Umrah and Haj seasons is not enough to compensate for losses made during the whole year.
This having been said it is a good idea to pay close attention to what you are buying. You want to be sure that you are aware of the quality of the item you are buying. It is difficult to purchase an item without seeing it in person. However, there are excellent quality products available online.