MUSCAT: There is no stopping the gold prices as it continues to break all historical records to reach an all-time high. According to experts it is expected to further increase and strengthen.
Gold has emerged as the safe haven of choice among investors as the pandemic upends economies worldwide. The spot metal touched $1,981.27 on Tuesday, about $60 above the previous peak set in 2011, boosted by a drop in real rates, the recent weakness in the dollar, massive government stimulus and flaring U.S.-China tensions. Gold is serving as an attractive hedge as yields on Treasuries that strip out the effects of inflation fall below zero.
As per the data published by the World Gold Council, many Central Banks have continued to invest in gold and have increased their holdings in the last 3-9 months.
According to experts, there has been a 34 percent gain for gold jewellery buyers in one year. Last year, on July 27, the gold rate was OMR 17.450, while on Tuesday, July 27, 2020 the prices reached OMR 23.450.
“It’s a historic day for gold and all individuals/institutions who have ever purchased gold; as their investments have turned profitable with the gold rate crossing its previous historic rate of USD 1,920/oz. Gold is trading at USD 1,935/oz and has appreciated 37% in a year’s time outperforming all other assets,” said Najeeb. K, Regional Head of Malabar Gold and Diamonds.
The ease to liquidate the metal without losing value even during difficult times has further increased its dependability and preference.
“Considering the current scenario, Malabar Gold & Diamonds initiated a cash buy back scheme for people who have purchased gold jewellery from other retailers as well – to support and provide maximum value and easy liquidity. This scheme is 100% compliant of all local laws and regulations,” Najeeb explained.
Malabar Gold and Diamonds has also introduced a 10% gold advance scheme. “Customers can benefit from increasing gold rate by just paying 10% advance and get benefit of the booked rate if price increases during purchase,” he pointed out.
Customers can also get the lower gold rate if prices goes down during purchase. By paying 10% advance, customers get the privilege to block the gold rate for 30 days and if they are paying 100% advance, they can block the rate for 180 days. “A customer intending to buy gold worth OMR 1000 just needs to pay OMR 100 to avail the advance booking offer and in turn get protected from the increasing gold rates. The offer is valid until 30th September,” Najeeb added.