Bahrain’s gold market has been booming over the last two years, according to official figures.

The amount of gold jewellery, bars and other items sent for testing at the Gem and Pearl Testing Laboratory of Bahrain (GPTL) more than doubled from 6,000 at the end of 2013 to 13,000 at the end of last year, said a report in the Gulf Daily News (GDN), our sister publication.

Precious Metals and Gemstones Testing Directorate acting director Abeer Al Alawi said the number of items tested was much higher than any of the previous five years.

“We maintained an average pace of around 5,000 items tested every year until 2012 and then there was a hike to 6,000 in 2013,” she told the GDN.

“In 2014, the number went substantially higher to 13,000, which definitely reflects on the business boom.”

All gold items have to be sent for testing before being sold.

Al Alawi was speaking at an open meeting of the Bahrain Chamber of Commerce and Industry's (BCCI) pearl, gold and jewellery committee which was held yesterday at its headquarters in Sanabis.

Her comments were supported by committee vice-chairman Mohammed Malim, who said that eight tonnes of gold items were stamped in Bahrain in 2014.

“It was 5.7 tonnes a few years ago and that average was maintained until last year,” he said.

“We are aware of hundreds of kilos of gold waiting to be stamped at the directorate, which means, it is more than eight tonnes.

“Demand for jewellery has increased, especially the demand for Bahraini gold and pearls.

“Bahrain stamped gold is branded for its purity, thanks to the strict watchdog that we have.”

Malim also claimed there were major delays in releasing stamped gold to traders, which he said impacted businesses.

“There is a delay and the procedures at the directorate are affecting the traders by way of their time and money,” he added.

“This is because the directorate, especially the GPTL is understaffed.

“There were 16 staff members three years ago which has now come down to six, which the Industry and Commerce Ministry and the Civil Service Bureau should immediately address.”

However, Al Alawi denied that the laboratory was understaffed.

“There is no staff shortage, instead it is the procedure that is mandatory and time-consuming, which ultimately aims to protect consumer rights,” she responded.

Meanwhile, traders attending the meeting called for security to be stepped up in Manama Suq.

If follows last month's incident in which a gold trader was attacked by three muggers who stole BD40,000 ($105,374).

The GDN had reported that Indian Rajesh Bhatia was treated for a fractured skull at Salmaniya Medical Complex following the assault.

“We have been requesting increased security in the suq after the unfortunate incident last month,” said Malim.

“Nothing has been done so far about this and we demand police checkpoints on roads leading to the suq.”

The meeting was also attended by Bahrain Assay Office chief Ali Shubbar, BCCI chief executive Nabeel Mahmoud, board members and businessmen. - TradeArabia News Service