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Wednesday, May 11, 2011

Gold sales plummet in Lebanon as prices surge

Gold sales plummet in Lebanon as prices surge : Bourj Hammoud's Arax Street -- once known as Beirut's bargain hunter's paradise -- has been grappling with soaring international gold prices, as jewelers there report a nearly 80 percent drop in sales over the last five years, and expect a bleaker future with the price of the metal's kilogram inching toward $50,000.

"See that juice store across street -- I'm certain they make more money than I do," said Krikor Kelebozian of Hadidian Bijoutier, gesturing toward a bustling snack shop as he leaned over a box of jewels.

Before the surge, the price of each kilogram of gold used to be $8,500 in 2000 but then jumped to around $49,100 in 2011.

Demand has plummeted from nearly 1 kilogram a week, a decade ago, to less than 100 grams today, said Shahe Ohanian of Ohanian Jewelry, also on Arax Street.

The jewelers report making a measly $20 profit per kilogram -- demand drops have greatly constrained price mark-ups, and the first casualties of those price adjustments are shop employees, who are subsequently laid off.

Nathalie, who runs a nearby jewelry shop which she inherited from her father in the 1950s, said she has had to make do without the help, a difficult feat given that she is also a mother. Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today

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