Drop in gold prices spurs demand as wedding season hits its stride

AMMAN — With the drop in gold prices globally and locally, many Jordanian families and tourists have been heading to the market in Amman to buy or stock up on gold, fearing that prices might increase in the future. 

Jordan Jewellers Association (JJA) President Osama Imseeh said the main reason behind the drop in prices is because the US economy and dollar have recovered. 

“The decrease reflected positively on the market this year. During the past five days, when gold prices dropped by $50 to $60, demand jumped because of investment and marriage as we are in the wedding season, and after Ramadan and the Eid Al Fitr holiday the season thrives,” he told The Jordan Times at his store in the upscale neighbourhood of Um Uthaina.

Abdullah Hroub, the owner of a gold store in downtown Amman, said many people have “had the courage” to buy more jewellery because of the price drop. 

At the beginning of this month, 24-karat gold was priced at JD26.7 per gramme, 21-karat gold at JD23.7, and 18-karat gold at JD20 per gramme, according to recent figures of the association.

The current prices for 24-karat gold is JD25 per gramme, 21-karat gold at JD21.4 per gramme, and 18-karat gold at JD18 per gramme.

“Anyone can buy gold at the moment. Many people who save up money come to buy gold and the ones who had to sell their wives’ jewellery when the prices were high now come back to buy gold for their spouses,” Hroub said.

The Jordan Times requested figures from the Jordan Standards and Metrology Organisation on how much Jordanians have spent since the beginning of this year on gold, but none were available so far. 

Hroub described the current season as “good”.

“It is the wedding season, so the most sought-after pieces are rings and wedding accessories. When gold was expensive, people used to buy only one piece — a ring — and waited for prices to drop so that they could buy more,” he said, adding that his sales soared by 80 per cent after the Eid holiday, which was between July 17 and 20. 

“Tourists like to visit the gold market in downtown Amman to buy jewellery and walk around because it is located near the main attractions of the city centre,” Hroub added.  

Jordanian and Arab customers interviewed by The Jordan Times said they wanted to take advantage of the price drop and buy various kinds of jewellery.

Ahmad Agha, from Iraq, said he wanted to buy gold from Amman stores because “it is much better here in the capital.”

“I wanted to buy gold because I wanted to invest in it as savings for my family. I advise anyone who can afford to buy gold to do the same,” he said as his wife was examining the jewellery on display at a shop in west Amman.

Hamdi Abu Sara, who joined his son to buy gold for his fiancée, said the prices are much better than in the past. 

“Those who might get married these days or next summer may come to buy gold now, fearing that prices will increase next season,” he added. 

Although there is demand for gold, long-time gold merchant Hani Suradi in downtown Amman said people only buy gold dinars as an investment for the future.

“The demand is not bad but the focus is only on gold dinars which is not profitable for us. There is a lack of dinars in the market, so we need more to keep up with the demand,” he added. 

Suradi noted that the market does not receive a large number of customers, accusing media outlets of exaggerating the drop in gold prices. 

“We can say that the price of gold really decreased if it broke a record of falling under $1,000 per ounce,” he added. 

He expressed hope that prices would further decrease in the future.

“When the prices increased two years ago, our business was negatively affected and made it difficult for people to buy many pieces. Any vendor would hope that prices drop,” he added.