Lingering worry about the state of economy has sent people scampering for better places to invest their money. Since gold is considered a very safe bet, prices of gold have sky-rocketed to a record high of $1,778 an ounce.
Consequently gold bars and coins are in low supply at major gold souqs across Dubai. There is currently a huge rush to buy gold bars and coins in the market resulting in 50 gramme and 100 gramme gold bars in thin supply.
Gold coins too are in short supply with gold traders unwilling to release more gold as the prices are expected to hit further north. Meanwhile as demand for bars and coins reaches an all time high, demand for gold ornaments has come down.
“Market price will go up further. Traders are selling gold bars at a premium of $50 per ounce. Normally the profit margin on a gold price is Dh 20, now traders are charging Dh 100 to Dh 150 more than the market value,” a local gold trader revealed to regional media.
A decline in gold price is possible only if the US Government decides to sell a part of the gold reserves, to confront the financial crisis.