Gold sales in the UAE soared 56 per cent in the third quarter compared to the same period of 2007, the World Gold Council said on Sunday. According to the WGC's regional office in Dubai gold sales in the UAE increased from Dh2.8 billion in the third quarter of 2007 to Dh4.3 billion this year. Gold sales in Saudi Arabia increased by 51 per cent, with sales growing by 42 per cent in other Gulf countries and by 33 per cent in Egypt in the third quarter.
As the grip of the global financial meltdown tightened around large economies in recent months many investors, banks and savers turned to gold to protect their assets. Many jewellery buyers also returned to the market in droves due to a lower gold price. In the UAE, some jewellery store shelves were emptied at that time of the precious metal as prices dipped. Tonnage demand for gold was also 18 per cent higher than last year.
"In Dubai, which is the single biggest market in the UAE, the fall in the gold price coincided with the Dubai Summer Surprises. Buyers who pulled back in Q2 due to concerns over the high gold price returned to the market. The Dubai Gold and Jewellery Group announced record sales during the DSS festival. "The Onam celebrations were also held during the quarter," said WGC Middle East's head of marketing Lama Al Saheb. "Jewellery demand also benefited from the shortage in bars and coins with consumers choosing to buy jewellery pieces for investment purposes. This shift in demand particularly benefitted low margin and low production cost items such as bangles and chains.
As the grip of the global financial meltdown tightened around large economies in recent months many investors, banks and savers turned to gold to protect their assets. Many jewellery buyers also returned to the market in droves due to a lower gold price. In the UAE, some jewellery store shelves were emptied at that time of the precious metal as prices dipped. Tonnage demand for gold was also 18 per cent higher than last year.
"In Dubai, which is the single biggest market in the UAE, the fall in the gold price coincided with the Dubai Summer Surprises. Buyers who pulled back in Q2 due to concerns over the high gold price returned to the market. The Dubai Gold and Jewellery Group announced record sales during the DSS festival. "The Onam celebrations were also held during the quarter," said WGC Middle East's head of marketing Lama Al Saheb. "Jewellery demand also benefited from the shortage in bars and coins with consumers choosing to buy jewellery pieces for investment purposes. This shift in demand particularly benefitted low margin and low production cost items such as bangles and chains.
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