Traders experience lackluster gold sales

Traders experience lackluster gold sales

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

Idul Fitri has always seen an increase in gold sales, with people
buying jewelry as a means to demonstrate to others that they have
been successful.

But that is a trend of the past.

Perhaps because of the financial crisis, with increasing
prices forcing people to reduce spending and the rising crime
rate making them wary of being too ostentatious, people have
toned down somewhat, especially in relation to the jewelry they
wear.

These day they apparently deem it unnecessary to deck
themselves in gold jewelry to demonstrate to others how
successful they have been in the big city.

This year, despite the relatively stable price of gold over
the last three months, gold traders in various districts of the
capital say their sales have dropped 20 percent compared to last
year.

Eva, a shop assistant at Toko Bandung, and Stefanus, the owner
of Toko Mutiara Hati in Palmerah market, Central Jakarta, said
that their shops were usually packed with customers during the
Ramadhan fasting month. Sales usually peak 10 days to five days
before Idul Fitri, when people receive their Idul Fitri bonuses.

"Last year, the number of buyers increased each week prior to
the holiday. But now our sales have dropped approximately 20
percent from last year," Stefanus told The Jakarta Post.

They said that their customers do not look for a specific type
of jewelry.

Nia, the owner of Toko Selamat on the second floor of Senen
market, Central Jakarta, said people buy either rings, bracelets
or necklaces from her shop.

"Most customers prefer 22 karat gold jewelry, of which we have
in various items. They buy items ranging from three grams to 10
grams," she said.

One gram of gold ranges in price from Rp 80,000 (US$8.7) to Rp
95,000, depending on how many karats it is and its quality.
According to traders, the price usually jumps by Rp 1,000 to Rp
2,000 per gram two weeks ahead of Idul Fitri.

Santi, from Sukabumi in West Java, a housemaid in an upmarket
housing area in Pancoran, South Jakarta, told the Post on
Wednesday that she had bought less gold than usual this year. She
said she only bought a three gram gold bracelet for Idul Fitri.

Interviewed after buying her bracelet at Toko Bandung gold
store in Jatinegara's Mester traditional market in East Jakarta,
she claimed she bought more last year, but had sold most of it to
send money home.

"If I had the money, I'd rather buy clothes for my relatives
or have a feast at home. Moreover, I'm afraid to wear too much
jewelry because there are so many robberies on buses these days,"
she said.

One customer at Stefanus' shop, Yati, said that she often
invested in gold. Whenever she has extra money, she exchanges her
jewelry for larger pieces. "Then whenever I need money, I just
exchange my jewelry for smaller pieces plus some money in
return," she said.

Apparently, the decrease in business is not limited just to
gold shops, but also extends to stores selling imitation jewelry.

Upik, who sells imitation jewelry at Mester market, said sales
had dropped 75 percent compared to last year.

"Many returning to their hometowns for Idul Fitri celebrations
last year bought imitation jewelry. But so far this year, I've
hardly had any customers at all," she said.