Gold, jewelry have lost their glitter for holiday shoppers

By Ida Indawati Khouw

JAKARTA (JP): For gold and jewelry store owners, this year's Idul Fitri may not be as bright as previous years.

Many store owners have been complaining about a slowing down of business during this fasting month of Ramadhan.

Renaldy, owner of a jewelry store in Tanah Abang, Central Jakarta, said that people usually started to flock his store when the fasting month began. "That did not happen this year. Our sales are down," said Renaldy.

His store, Eropa, which is located in the middle of a line of jewelry stores, was quiet. Only one customer was there. The neighboring stores were in a similar situation.

Andi, the owner of Murah Hati, one of the major jewelry stores at the textile market Tanah Abang, made a similar complaint.

"We don't feel an improvement in our sales, it is different from last year. People are now afraid of buying jewelry or gold," said Andi.

Worries about safety were most likely the main reasons for people not buying, he said, referring to the latest riot in Tanah Abang, where the district head's office and seven cars were set ablaze.

It is a habit among the general public to wear new jewelry or gold accessories to celebrate Lebaran (Idul Fitri).

They feel that by wearing jewelry at Lebaran they raise in estimation in the eyes of their neighbors and relatives.

One Eropa customer said she has stopped wearing jewelry during the Idul Fitri festivities. "It's not safe now," said Asty, 42, a mother of two children.

She said she does not care what her neighbors would say about her not wearing jewelry or gold accessories.

Business is also slow at other jewelry and gold stores. Thio Oen Nio, owner of the 80-year-old store Gang Kenanga in Senen, Central Jakarta, said: "I think now we are facing a difficult time. Fires and riots are happening more often nowadays."

According to her, business has been on the decline for the last three or four years. "Five to six years ago, things were better."

Didi Gondowidjojo, owner of Abadi jewelry store in Cikini, Central Jakarta, also described a similar situation. "People may think that investing money in land or depositing it in a bank is better than buying gold or jewelry," he said.

Didi said that he sold between five to eight jewelry sets on a good day, "But sometime I don't sell even a single piece," he said.

However, he suggested that there would still be a high demand for jewelry, especially from the middle class.

Marcia Moniaga, a promotions manager of the World Gold Council shared this opinion, saying that the demand in Jakarta had been declining. "However, the activities of jewelry manufactures have been high since the fasting month began. This indicates that middle-class demands are still high."

According to Marcia, Jakartans now have various choices. An increase in the number of department stores had also changed the people's tastes in how they spend their money.

She said that the tendency of choosing imitative accessories had also increased.

"It's a pity. Jewelry has the most resale value and wearing imitative accessories is just temporary beauty," she said.

According to Yap Seng Hoat, the owner of Seng Hoat jewelry store in Tanah Abang, the decreased was in line with the economic situation.

"In the past, people preferred to invest their money in gold because our national finance situation was unstable; inflation was so high during that time. But now, when putting money in deposits or plots of land is safer, people choose that instead of gold," said Yap, who started to sell jewelry in the 1940s.