- Title: SYRIA: Gold dealers look for new ventures as prices rise
- Date: 4th January 2011
- Summary: DAMASCUS, SYRIA (RECENT) (REUTERS) VARIOUS OF CENTRAL GOLD MARKET SIGN WITH GOLD PRICES DISPLAYED IN SYRIAN POUNDS VARIOUS OF CLOSED GOLD SHOPS HEAD OF JEWELLERY COMMITTEE OF DAMASCUS, GEORGE SARJI, WORKING BEHIND HIS DESK NAMEPLATE READING "GEORGE SARJI HEAD OF JEWELLERY COMMITTEE OF DAMASCUS" (SOUNDBITE) (Arabic) HEAD OF JEWELLERY COMMITTEE OF DAMASCUS, GEORGE SAR
- Embargoed: 19th January 2011 12:00
- Keywords:
- Location: Syrian Arab Republic
- Country: Syria
- Topics: Industry
- Reuters ID: LVA2S5IIJIRB7UZQFL6XSGNEFQL7
- Story Text: With the significant rise in global gold prices, Syria's gold market has suffered a severe setback. Many of the jewellery shops in the famous Damascus market alleyways are empty as prices have catapulted beyond the reach of many.
Gold jewellery traditionally plays an integral role in Syrian social customs, as it does in the rest of the Arab world. A groom's family will pay the bride her dowry in gold jewellery, and gold jewellery is one of the most visible and treasured status symbols in Arab society.
Damascus is famous in the region for its intricately designed high-quality gold jewellery.
But with many jewellers operating independently, the hike in prices has hit the small businesses hard. Reaching markets abroad could help, gold exports are not allowed in Syria.
The Jewellery Committee in Damascus and the government are now discussing measures to allow some exports, says George Sarji, Head of the Jewellery Committee in Damascus. With demand higher in eastern Asia, the Syrian market could minimise losses by exporting to that region.
"They (the government) promised us with good signs. We hope this problem can be resolved. The most important thing is when we take our products outside to the Gulf or to Europe, and bring in raw gold in its place. So the problem of raw gold would be solved and the manpower would be better. We would have ways out. We do not have demand here, there may be more of a demand abroad. We are optimistic," Sarji told Reuters TV.
Gold prices have been in an overall upward trend since 2001, climbing from just over US$250 an ounce that year to a record high above US$1,410 an ounce on Thursday (December 30).
High prices have weighed heavily on jewellery demand this year in many major consuming regions such as India and the Middle East, but this slack has been taken up by large investors in Japan, China, the United States and Europe.
The lack of demand has caused the closure of many of Damascus's gold jewellery shops and ateliers. There were 600 registered ateliers in 2004 -- now only 50 remain.
Many of the ateliers' owners have changed direction and opened new businesses. Some have left the country.
Nabil Sarweh, a former atelier owner, has closed his workshops and is now preparing to open a restaurant in the old city of Damascus. He says it's the only way to keep feeding his children.
"I've started to think of other jobs just like other guys who I knew in the trade, they've changed to building hotels, restaurants or cafeterias, any other career. For example, my partners and I bought an old house and we are converting it into a cafeteria and restaurant. Just to adapt with the situation. The working capital invested in this is the same working capital that I was working with before. But of course there is a huge difference, we should know how to limit our losses and how to increase our profits. In our (gold) trade we cannot limit our losses anymore," said Sarweh.
Syrian gold jewellery is sought after in the region partly because workmanship fees are among the lowest in the world.
As Damascus jewellers hope for a drop in gold prices, the once thriving marketplace is empty, leaving shop owners plenty of time to read the newspapers or play backgammon. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None