Gold rush for jewellery

THE rocketing price of gold has inspired savvy housewives to sell their spare sparklers and cash in on the gold mine of unwanted items lost and forgotten in their dusty boxes.

And many others are capitalising on the talents of Bahrain's goldsmiths by converting old-fashioned pieces into new-look bobby dazzlers.

As gold, which traditionally is viewed as a safe haven in uncertain times, hit record highs in recent months many women have rushed to shops in Gold City and the souq.

Gold, which is priced in dollars, has now been trading at just over $900 per ounce, down from a $1,000 peak. And once again, gold in recent days rose after data showed a sharp rise in the US unemployment rate.

Demand for the glamorous metal, which is used in jewellery, dentistry and electronics, has been spearheaded by Asian economic giants China and India. And many investors have been funneling their cash into commodities like gold as they seek refuge from volatile world stock markets, the plunging value of the dollar and growing fears about a US-led economic slowdown, traders said.

It means good news for jewellery-loving women on the island sitting on a pile of golden nuggets gathering dust.

Expat Julia Charlesworth, 41, from Jasra, for example, raided her jewellery box and cashed in to the tune of BD240.

"Like many women I had jewellery I never got out of the box - including some big golden ear-rings from the 1980s that were no longer fashionable alongside some odd bits, like a single earring because the matching one has been lost, and some old bracelets.

"I never expected it would be worth so much and was able to buy a ring with eight diamonds that matches my wedding ring. I'm absolutely delighted and have not taken it off since!

"I've been spreading the word and plan to take another bundle to the shop very shortly!"

Rajesh Chhaganlal, owner of the Chhaganlal Jewellers in Manama, said: "Gold at one time came at a cost price of $50 an ounce compared to its recent prices.

"And people are still buying. Some think it will increase again and maybe they will be right. We jewellers never thought it would reach $1,000 and it eventually did."

In fact, analysts suggest gold last week had taken support from bargain hunting by jewellers attracted by the precious metal's move back beneath $900 an ounce at the end of last month.

Some believe the end of the Indian marriage season, which runs from January to May, may reduce the demand for gold. Demand is traditionally strong during the wedding season as jewellery is given to brides by parents as a gift of financial security.

Not all agree. Gold buying carries on regardless, according to mother Usha Pillai, 52, from Hoora, who said: "We have been buying gold for so many years to save for our daughters' weddings whatever the price; we have no choice. It is a necessity, not a requirement, although it can also be looked on as an investment. We save for our children - they save for their own, and so on."

Khalid Ibrahim, Bahrain branch manager of Atlas Jewellery, in Manama, added: "Our sales have remained the same. People are buying more now, despite getting less in weight for their money than a few years ago, as gold remains a solid asset in my opinion."

And, Antony Palathingal, managing director of Atlanta Jewellery in Manama, said: "People are buying more in the fear of facing even higher increases in the price in future."

Bahrain's relationship with the precious metal dates back a century when migrants flocked into the island from the Asian subcontinent. From the early 1900s goldsmiths and craftsmen from India and Pakistan travelled to the kingdom seeking their fortune.

Prakash Devji, managing director of retail division, Devji Jewellers, explained: "My grandfather Ramji Kalidas was working as a goldsmith in Karachi and came to Bahrain in 1947. He rented a shop on Shaikh Abdulla Road and began preparing made-to-order jewellery for local customers."

Many of the young craftsmen aimed to make and save money for their eventual return to their homeland. What they did not anticipate at the time was that some would end up building a castle of dreams and aspirations for generations to follow.

Mr Chhaganlal said: "My father Chhaganlal Khimji was 19 when he first landed at the Mina Salman Port from Karachi. At that time the island was under the British-Indian Empire.

"He belonged to a family of goldsmiths and he made his trip here with just his tool set. He hoped to make some money and leave soon after. Now, we have the fourth generation growing up here!"

In the early days, there were few showrooms or shops, only small stalls where the tradesmen set about their business. But business blossomed and the pioneering entrepreneurs really struck gold. Devji Jewellers, for example, one of today's most sought-after jewellers in Bahrain, now boasts five stores in the kingdom.

Mr Devji said: "We are planning to expand in the Gulf region with five new shops this year and one in India, our first one in the country.

"We wish to elevate Indian jewellery to a new level when we open at the new City Centre complex catering to both the Arabs and the Indian community."

However, today's goldsmiths believe they cannot just sit on their laurels as the demands of customers have grown alongside their businesses.

Mukesh Chhaganlal of Mukesh Jewellers said: "In the old days women sat at home and waited to get married and everyone bought the same kind of jewellery. Now, ladies come with more exclusive ideas when it comes to choosing their pieces.

"The ladies are making us work now. They are more educated and they know exactly what they want.

"What we deal with is not a day-to-day requirement, it is a luxury. The business is still here, holding strong, only now it's become a lot more challenging."

Although the whole of the Middle East has developed strong gold markets, Bahrain, for more than one reason, remains the 'land of the golden smiles'.

Mr Mukesh said: "Over the years people have based their trust on the gold in Bahrain because what they see is what they get - it's pure and exclusive."