Gold remains popular in United Arab Emirates

Residents of the United Arab Emirates (UAE) will continue to be unabated this year Buy gold, so reports Gulfnews After asking around at various jewellers. According to the latest estimates, it is estimated that the sector will sell 15 to 20 percent more weight of gold this year than in 2013. If we only look at the second half of this year, there is even an increase of 40% compared to the same period a year earlier.

"In markets such as the Gulf States and in India, price has become a less decisive factor in buying gold," Kalyanasundaram, the director of Kalyan Jewellers, said. The entrepreneur plans to expand his network of jewellers in the Gulf region. "It is a custom here to buy gold, where the price is at a certain moment only influences the decision to buy the gold earlier or later. The decision to buy gold has already been made."

Buyers benefit from lower gold price

The Gold price In dollar terms, it recently fell to its lowest level in four years, prompting many buyers to take advantage of the favorable price. Last week, jewellers in this small oil state were also considerably busier than usual. Normally, around this time of year, it is relatively quiet at the jewellers in the UAE and India, as the Indian Diwali festival has just ended. The decline that is normally visible at this time of year was significantly smaller this year, writes Gulfnews.

Around 250 tonnes of gold are bought annually in the six Gulf states (Bahrain, Oman, Qatar, Kuwait, Saudi Arabia and the UAE), of which 150 tonnes are in the UAE. This year, the volume will probably be 15 to 20 percent higher due to the even lower gold price. "At the end of September, we have already reached the total volume for the whole of 2013 and with the weakness of the gold price at the moment, it could be very busy at the end of this year," said Cyriac Varghese, managing director of Sky Jewellery. "The gold trade in Dubai/UAE is facing its best year ever. At the current price, there will be 15 to 20 percent more volume traded on an annual basis, much of which took place in the second half of the year."

Drop in gold price leads to extra trade in Dubai