Gold sales in Qatar see a 60% drop in second quarter

It seems like everyone’s favourite yellow metal is not having the best time of its life.

If indications are to be believed, the sale of gold has nosedived by around 60% in the second quarter of this year, compared to the same time in 2015.

Sky Jewellery Manager Sinto Jose told Qatar Tribune that 2016 was the worst year in the last decade for jewellery sales.

"Our sales during this summer have gone down by about 60% compared with last year. In fact, sales are falling every month," he said.

The average sale at Sky Jewellery, which used to be around 40kg of gold ornaments in a month at its Al Watan Centre outlet alone, has gone down to about 15kg since the beginning of the second quarter this year.

Downsizing by many Qatari companies is one reason believed to have caused this trend.

"Families from India and Arab countries are our main buyers. As many of them have lost their jobs, our sales have taken a hit," he said. In fact, the number of customers exchanging old ornaments for cash has increased, Jose said.

He said, "As many of them who have lost their jobs have availed of bank loans, they are selling their ornaments to pay off their debts."