Wednesday, April 24, 2013
Monday, April 22, 2013
Dubai: Dubai has run out of gold. Well not exactly, but salespersons at jewellery outlets say there is no supply of gold coins and biscuits.
And those hoping to cash in on tumbling gold rates are likely to be disappointed if they head to retail outlets as the men manning the counters say the the city has run out of coins and biscuits. “There seems to be no gold coin or bar available in Dubai,” a salesperson in Karama told this reporter.
“It’s unthinkable for gold to come down to this level,” said Pradeep, an Indian logistics executive who joined the throng of buyers at Karama Shopping Centre, where a cluster of gold shops were abuzz with customers. On Friday global gold prices closed down five per cent, precipitated by fears of a gold selloff by European central banks to pay for bailouts by ailing countries.
Tuesday, April 3, 2012
The TrustSecurities DMCC, a clearing broker member of Dubai Gold and Commodities Exchange (DGCX) has announced that the demand for gold trading in Dubai, United Arab Emirates – known as the biggest Arabian economy, next only to Saudi Arabia – is rising to a good start this 2012.
The DubaiChamber Study explores the challenges and prospects for the UAE gold market and the different potentials for the country’s gold traders and investors to benefit from these opportunities. This is while protecting themselves from the risks involved in trading with commodity metals. It reported gold trades of over US$41.3 billion which indicate a healthy trend for the whole 2011 and early 2012. The study finds out that the Dubai Gold and Commodities Exchange (DGCX) has been thriving as of May 2011 when gold contracts increased by 39% year on year to achieve over 60,000.
There is huge increase in Gold investment in Dubai and there are lot of forex brokers in Dubai which are giving option to trade in Gold. In Dubai UAE, gold plays an important part for use in jewelry, investment commodity as well as in import and export trade. Gold is known to be less volatile the currencies and other investment products. This is considered to be an investment haven and a speedy way to liquidate assets. Overtime, Dubai has been gaining reputation for the high quality of gold, structure of gold trading and tax free operations that it offers, therefore making gold more attractive.
However, it has also been subject to price cycles during the past few years. According to Dubai Chamber’s study, the price movements in the gold market are very crucial for gold investors and traders who need to make future plans for their businesses.
Opportunities for UAE Gold Market
Despite of these, gold trading in Dubai, UAE continues to be promising. The investment demand is not only the reason for the price rise of gold but due to higher demand for using it for jewelry making. It is also important to consider that this country continues to increase its wealth with the consistent growth of its economies. And with that growth, residents of UAE are gaining more disposable incomes to purchase luxury items.
The World Gold Council (WGC) estimates that jewelry and investment demand from Asian countries embodied about 40% of total global demand for gold in 2010 and also estimate that the demand from India is anticipated to grow ultimately.
Aside from being beautiful to look at, gold has also been a world standard for finances throughout centuries. Merchants in the past exchange gold with one another to obtain necessities. Today, gold is a primary material used for making jewelry and coins.
Dubai gold trading used to be possible only for affluent people and those who have enough space to store their gold bars. But now, with the advent of technology, the average people can now also trade gold even without actually possessing the real metal. This is all done with the help of the Internet. A lot of investment broker companies today offer a special platform where traders can access the Gold market and make profits from it.
While stocks and currencies market make up the major volume of investments today, gold trading has a number of benefits which seem to attract more and more traders. Some of the reasons are as follows:
The Gulf’s most vibrant city – its modern heart and soul – is Dubai. This emirate is situated south of the Persian Gulf and owes its remarkable economy to the oil reserves that were found there during 1960’s which then led to a surge of investors and businessmen. Dubai, United Arab Emirates has always been the center of gold trading since the 19th century. Buying gold in Dubai became more widespread after the establishment of the well renowned Gold Souq market. Today, this is considered as one of the major gold markets around the world.
The spotgold price in Dubai is presented in the national currency of the UAE Dirham (AED) twice each day according to the International rates of gold and currency exchange rates of the Dubai Gold & Commodities exchange (DGCX). The rate of gold in Dubai is also classified by the gold’s purity, namely 22 or 24 karat composition in troy ounces. There are several sources around the Internet that show the gold rates in Dubai per gram daily. The main and perhaps biggest attraction of the Dubai gold market over other markets is the low prices it offers. Compared to the other markets, such as the European gold market, the price is a lot lower by up to 60%.Demand of gold trading in Dubai is increasing rapidly.
Exchanging gold with other commodities is an age old practice. Aside from being admired for its beauty and symbol of power, gold is also used by investors as a way to protect themselves against inflation. Unlike for currencies and other financial investments, the prices of gold remain unaffected by external economic conditions. And with the high demand for this commodity as a stable financial instrument, more and more investors are considering gold as part of their portfolios.
If you are looking to diversify your portfolio into gold investments through a Dubai broker, then there are a number of things you should consider first. Just like any other investments, gold trading has its pros and cons so take note of these before making a decision.