Market Experiences Recession, Demand on Gold Purchase Drops 70% after VAT Application
2019-10-08 - 7:18 p
Bahrain Mirror: Local newspaper "Akhbar Al-Khaleej" said that the local markets witnessed a recession and stalemate in gold sales by 70%, for several reasons, the most important of which are changes in the recent period, including the application of VAT and religious events.
The newspaper added "gold prices have seen several changes in the past months. Increase in prices started since last August when the ounce reached $1500 after it was $1400 last July. The ounce is expected to reach $1600 in the coming months as conflict between China and America continues."
Changes in gold prices were noted during the past weeks, the price of an ounce fell to $1478 and the gram of 21K gold price reached 15 BD 650 fils and that of 22K reached 16 BD and 650 fils. Meanwhile, it increased again at the beginning of this week, as the ounce reached $1503 dollars, while the gram of 21K gold reached 16BD and 100 fils and that of 22K gold reached 16BD and 700 fils.
Jeweler Hussein Al-Shihabi says "The changes in the markets are due to several reasons, the most important of which is confusion in the US stock market, and its trading in addition to the continuing conflict between China and America. Besides, the Bahraini gold market is witnessing a recession in the sale of yellow metal by more than 70% for several reasons, the most important of which is the application of VAT, which is up to 5%; i.e. one dinar per gram of gold and this is considered a large sum."
Economist Osama Moeen says "The Bahraini market is experiencing a major recession in the purchase of gold in this period, for several reasons, the most important of which is the decline and inflation sometimes in prices, which leads to the loss of investor and consumer and fear of buying in addition to the high cost of living."