Coronavirus fears may have left tourist hot spots empty worldwide but the tills of gold traders in Dubai have remained full. At 11am on Tuesday, the pitter-patter of footsteps from tourists echoed through the alleyways of the city’s popular traditional Gold Souq next to Dubai Creek. Visitors from Germany to India and Australia to Pakistan ventured out to haggle with gold traders. With face masks in tow and mini hand sanitisers seen hanging from the bags of shoppers at the souq, fears about the spread of virus did little to deter eager shoppers from striking a deal with traders. Visiting from London, Naseem and Aboo Chhatbar said they were on the lookout for a necklace and bangle. "We are looking to buy something for my granddaughter," Ms Chhatbar said. "Yes, the price is a little higher but we have always invested money in gold, so we're happy to buy even now. "We are retired so we are using our savings to pass something on to our granddaughter that will be a long-term investment for her future." Despite a surge in price, traders said the precious metal was the "asset of choice" for many. And investors have been flocking to buy gold as global markets swing violently in light of coronavirus fears. It is expected the yellow metal will continue its rally in the short-term. Traders at the souk said business was running as usual with only a little dip due to travel restrictions. "Even at a time like this, where businesses the world over have been impacted by the coronavirus outbreak, gold retailers have fared a little better," Suresh Mulani, assistant shop manager at Kanz Jewels, told <i>The National</i>. “Gold is a very safe investment option because it holds its value over time.” In December, a 22-carat yellow gold bangle weighing 27 grams cost Dh5,205 at Kanz Jewels, Mr Mulani said. On Tuesday, the same piece was priced at Dh5,665 - a mark-up of about eight per cent. "In December, the price of 22 carat gold was Dh175 per gram, but today we are selling at Dh190 per gram," he said. “Another gold set, which weighs 91 grams and includes a necklace, ring, earrings and bracelet, would have sold for Dh19,095 a few months back. "Now, it is priced at Dh20,475." Many traders in the souq calledthe metal a "safe haven" because of its "staying power". "Recently, customer footfall has dipped slightly because of travel restrictions due to the virus, but the value of our gold stock has increased over the past two or three months," Mr Mulani said. Vijay Sagar, a salesman at Shantilal Jewellers, said they had not seen a big effect on business due to the coronavirus outbreak. “It is not something you will make money on in a few weeks or days, so we haven’t recorded a huge surge or dip in sales because of the virus like other businesses," he said. “People are still purchasing, but inflation has impacted the middle-class buyers. “These people set aside large chunks of their salaries to invest in gold, so if they have a limited budget when prices increase, it affects their buying power.” Comparing prices from December to March, he said that, on average, a customer would have to pay an extra “Dh200 for every 10 grams of gold”. "A 1kg, 24-carat gold bar that cost Dh180,000 in December would now sell for about Dh200,000," he said. A few doors down at Darya Jewellry, sales executive Mohammed Iqbal said business remained steady. “The value of gold has gone up, despite what is happening around the world,” he said. While the coronavirus had slightly affected customer numbers, he said this was only because of travel restrictions, "not investment woes". “We have heard from other traders that some individual investors are choosing to trade gold for cash too, but not in our shop,” said Mr Iqbal. Since January, the coronavirus spread has posed an evolving risk to economic activity around the world. First detected in the Chinese city of Wuhan in December last year, the virus has now spread to more than 100 countries.
