Algeria: DA to 5,000 per gram, gold is out of reach

February 28th, 2011    Posted in news

The gold market, in Oran, is increasing dramatically. This is the observation made at the various jewelry stores in town. The soaring price of precious metal on the world market seems to take the leadership of a new historic high.
Algeria: DA to 5,000 per gram, gold is out of reach

The gold market, in Oran, is increasing dramatically.

In recent weeks, gold has sold nearly 5,000 DA gram. Thus, its price has experienced increases ranging from 30 to 40% compared to last year (2010), where its price was only around 3500 AD / gram. Jewelry stores in downtown, the price per gram crafted imported from Italy is available between 4,500 and 5,000 AD.

For locally made jewelry, the program is transferred between 3800 and 4200 AD. Gram gold ‘broken’ oscillates between 2,800 and 3,000 dinars. In cons by jewelers, especially M’dina J’dida, the price of gold is significantly lower than that proposed in the shops “chic”.

Indeed, local customs want the Algerian woman has her jewelry box, and traditions and bridal dowry also require the purchase of jewelry.

This finding is observed in the context of family savings in anticipation of hard knocks. However, the increase in gold prices has pushed many young people to postpone their marriage at a later date and some jewelers to lower the curtain before the blatant lack of customers.

The latter, in fact, merely to inquire about prices, before leaving, and jewelers say they do not record substantial sales. Jewellers are unanimous in recognizing that for some time, a year older, their trade stagnated miserably before the soaring price of gold, which goes crescendo, a situation never experienced before.

In addition to the purse of gold continues to climb, the informal market is a real problem. However, the informal paradoxically increase prices, instead of breaking them. “It’s because all the channels to market are under the stranglehold of the Mafia of gold that decides the prices at will,” says one jeweler activating downtown.

Side of the General Union of Algerian Traders and Artisans (UGCAA) explains this surge in gold prices wrought by a growing demand increased, an increase that is not due to world price of gold. In other words, the gold market in Algeria is indeed unstructured in the informal sector.

Sweatshops are more numerous and their number has increased sharply since the early 90s. The illegal import of gold from Italy, Dubai, Libya and the countries of the Sahel border is efficient. The rate controlled by the parallel market for gold can not be compared with that of another country where gold is considered a currency governed by the rules of other currencies. The smuggling networks are increasing and the gain is reaped enormous.