"The prices would ease as the world financial markets begin to settle down," Muzammil Hanif, senior vice-president of Al Fardan Exchange, which also deals in gold, told this newspaper.

Gold rates had actually begun sliding as the world slipped into recession and major global currencies started weakening a few months ago. Pure or 24-carat gold had touched almost QR90 here a couple of weeks ago.

According to Muzammil Hanif, a 116-gram bar of pure gold was available for QR11,650, while the one-ounce (31.1035 grams) biscuit was on sale for QR3,280.

Pure gold is mainly used as an investment. Its prices tend to go up steeply when there are wars and uncertainties in the world. People prefer gold to paper currency or stocks in times of crisis, Muzammil Hanif said.

Gold prices are also largely dependent on speculation, since there is a lot of speculative activity in bullion trade the world over, especially in troubled times.

In Doha, pure gold is available beginning from a one-gram bar, which is used more as a souvenir than an investment tool since it works out expensive due to the making charges involved. Also available are five-gram, 10-gram and one-ounce bars.

Investors here are required to retain purchase receipts with them so they can sell the yellow metal as and when they want. Police permission is required to sell gold, especially if the quantity is big.

Twenty-two and 18-carat gold is, on the other hand, used for jewellery-making, so deductions are made by buyers when one sells ornaments and, according to bullion traders, that is the reason why it is not preferred as an investment tool.

Ornament-making charges can work out to anything between QR5 and QR12 per gram of gold depending on the design of the ornament. This makes the deductions even more uneconomical at the time of sale of a piece of ornament.

Filipinos here largely prefer 18-carat gold ornaments, mostly rings and chains, traders said.

Source: MENAFN.COM

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