Retail gold demand up in Kingdom during haj

abu'muhammad

Junior Member
Assalamu alaykum,


By REUTERS

Published: Nov 15, 2010 22:16 Updated: Nov 15, 2010 23:17


MAKKAH: Haj is lifting demand for gold jewelry in Saudi Arabia, but business is still sluggish due to high prices, gold retailers said on Monday.

“Haj is the main season. After that, the business will be weak,” said Ali Al-Asadi, a gold salesman in Makkah.

He said customers bought on average 80 or 100 grams compared with 200 previously, before gold prices went up.

Spot gold was bid at $1,365.95 an ounce on Monday, against $1,366.35 late in New York on Friday. That compares with levels of around $1,100 in November a year ago.

Several traders said demand for gold was up around 10 percent during Haj but that high prices would deter purchases during the rest of the year.

“Despite the increase in the price of gold every year, we thought that sales would decrease, but there are increases in sales with the increase of pilgrims, and there are good purchases, Praise be to God,” said Abdullah Al-Maliki, a gold retailer opposite the Grand Mosque.

Hoteliers expected up to 3 million pilgrims this Haj, more than last year’s numbers when many stayed at home due to swine flu worries.

But Al-Maliki said many people were reluctant to make bigger purchases, echoing comments by other traders.

“This year demand has been a bit weak. There is some movement now during Haj,” said a gold trader, who gave his name as Abdullatif.

“For Haj I decided to buy small gifts for kids costing not much,” said an Egyptian female pilgrim who gave her name as Najeya.

“At Haj you need to buy gold as presents,” she said, haggling over prices. Overall, retail gold demand volume in the Middle East during the second quarter of the year was mixed, with Saudi Arabia recording a 5 percent rise on the year and the UAE a 15 percent decrease, according to a report by the World Gold Council (WGC).

Gold demand in Saudi Arabia was driven by strong domestic consumption, and UAE demand tailed off in response to high prices during the second quarter, the WGC report added.

http://arabnews.com/economy/article191923.ece
 

Aapa

Mirajmom
Assalaam walaikum,

Thank you for posting this. Gold is the only money of value. They have vending machines in Germany. There is a real economic panic. We know the dollar is useless.

The other side of the coin is what does hajj have to do with gold.
 

abu'muhammad

Junior Member
Assalaam walaikum,

Thank you for posting this. Gold is the only money of value. They have vending machines in Germany. There is a real economic panic. We know the dollar is useless.
Waalaykum salaam,

you are Right ! gold is. Studies and survey conclude that the gold prices have ever escalated. Its been always a commodity in demand. Contrarily during economic downfall or emergency the currencies turn into paper heaps.

The other side of the coin is what does hajj have to do with gold.

oh yes haj rites have nothing to do with gold ! but before and after haj the hajis buy all such materials. I hear that gold bought from Saudi Arabia is of better quality without any adulteration, so this may be one of the reason.
 

Aapa

Mirajmom
Asalaam walaikum,

For those who have means they must buy gold now...for the rest of us..we depend on Allah subhana talla.
 

al-fajr

...ism..schism
Staff member
Assalamu'alaykum

The other side of the coin is what does hajj have to do with gold.

I recall more gold shops outside the Masjid in Makkah than any other type of shop. There are literally rows upon rows of them.
 

Aapa

Mirajmom
Assalaam walaikum,

I know Arabian gold is good...but it makes no sense to me..you go on the holiest pilgrimage and you end up buying gold. That change from spiritual to physical should be enough for a heart attack. Why brother..just go to Beverly Hills.
 

Al-Kashmiri

Well-Known Member
Staff member
Assalaam walaikum,

I know Arabian gold is good...but it makes no sense to me..you go on the holiest pilgrimage and you end up buying gold. That change from spiritual to physical should be enough for a heart attack. Why brother..just go to Beverly Hills.

Wa`alaykum us-salaam

I have to disagree. Firstly, Makkah has long been a city of trade due to the hajj, since way before Islaam. Makkah is known for its goods and much of their income has always been through spending by pilgrims and tourists. It is how many Makkans live.

There's nothing wrong with spending your money as you please after the hajj - there is no sin on it and shouldn't be a heart attack matter. If people want to buy it's their business. Unless they made the hajj solely to buy gold from Makkah, then there isn't really a problem or issue. Of course, it would make more sense to buy after the hajj, but not everyone has the option.

Why go Beverly Hills? For starts, the Muslims are more deserving of our money. Plus, the du`aa of Ibraheem over Makkah is enough a reason to choose to buy from Makkah as oppose to elsewhere. It is blessed. Beverly Hills is not. In addition, many people prefer to buy their gold from the East than the West.

But in all honesty I have to agree that when you hardly get a change to visit the House of Allaah, you'd rather use that precious time to stay in the House of Allaah. Shopping of any sort can be a big distraction to that...
 

abu'muhammad

Junior Member
I know Arabian gold is good...but it makes no sense to me..you go on the holiest pilgrimage and you end up buying gold. That change from spiritual to physical should be enough for a heart attack. Why brother..just go to Beverly Hills.

Assalaamu alaykum,

I believe that everyone who goes there has priority of performing haj and other activities are at secondary level. The people can go to the markets by doing dhikr or reciting surahs and Alhamdulillah people over there do that and value their important time.Worship isn’t limited to literal actions but goes to every good permissible action. so when people are buying stuffs for their family or for their relatives/ friends during the haj stay that’s ok. Just like wise as respected brother said above that it do not involve any sin. These people don’t turn hypocrites or turn materialistic and or greedy. Islam is against such egocentrism that has no support. Even hypocricy enters into us when we allow shaytaan and nafs to rule upon us.

people do purchases for their own people and for the sake of some memoirs of the good time they spent Further I haven’t came against any writing that say that purchase of any permissible goods is prohibited before or after the haj.

Permissible business (tijarah) is allowed and there is a fiqh of tijarah to undertand it rightly. Our pious predecesors and the later followers did went with kaafila to distant lands to buy or sell necessary things.

and yes as said, such actions are distraction during the precious haj times.
 
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