Gold sales plunge by 40% in Dubai, Abu Dhabi
Gold sales plunge by 40% in Dubai, Abu Dhabi
Commodity Online
DUBAI: High gold prices, slump in realty boom and the ongoing economic meltdown is pushing down gold jewellery sales in Middle East’s two active cities—Dubai and Abu Dhabi.
Abu Dhabi Gold Jewellery Group told reporters on Tuesday that gold jewellery sales plunged by 40 per cent in Dubai and Abu Dhabi in May.
He said small gold retailers are under threat of shutting their shops down as the world economic crisis and slumping tourist inflow have dampened the consumers’ love for gold.
”There are fewer tourists coming to cities like Dubai. Also lots of expatriates are leaving on summer holidays from Dubai and Abu Dhabi leading to dull gold jewellery sales,” the Group chairman Tushar Patni said.
Also, gigh gold prices, slumping jewellery sales and rising market conditions are prompting several Indian bullion dealers to import scrap gold and gold coins to several destinations in the Middle East, especially to Dubai.
In the last few years, India has been the largest importer and consumer of gold. In 2008, India imported around 400 tonnes of gold, which is mainly used for making jewellery items and gold coins. But in the last five months of 2009, India’s gold imports have fallen to negligible levels, compared to previous years, that bullion dealers are now importing scrap gold to Dubai.
India has so far imports only around 47 tonnes of gold this year.
Bullion dealers point out that there is a new-found love in gold between India, the world’s largest gold consuming country and Dubai, a top global gold trading city. Dubai which generally exports gold to India is these days importing the yellow metal from India.
In the last five months months-January, February, March, April and May-of 2009, India exported nearly 30 tons of gold coins to Dubai, the City of Gold, which has several large India-based gold jewellery show rooms.
Dubai, the biggest bullion market for trading gold in the Middle East, has been hit hard by high prices of the yellow metal. Dubai and other leading cities in the Gulf countries had reported crash in gold sales upto 60% for January, February and March in 2009.
It is not just Dubai, the City of Gold, that has seen bullion markets reeling under recession. Plunging gold sales, volatility in prices and economic meltdown have forced several leading gold and diamond jewelers across Middle East cities to halt all their expansion plans.
Gold sales plunge by 40% in Dubai, Abu Dhabi
Commodity Online
DUBAI: High gold prices, slump in realty boom and the ongoing economic meltdown is pushing down gold jewellery sales in Middle East’s two active cities—Dubai and Abu Dhabi.
Abu Dhabi Gold Jewellery Group told reporters on Tuesday that gold jewellery sales plunged by 40 per cent in Dubai and Abu Dhabi in May.
He said small gold retailers are under threat of shutting their shops down as the world economic crisis and slumping tourist inflow have dampened the consumers’ love for gold.
”There are fewer tourists coming to cities like Dubai. Also lots of expatriates are leaving on summer holidays from Dubai and Abu Dhabi leading to dull gold jewellery sales,” the Group chairman Tushar Patni said.
Also, gigh gold prices, slumping jewellery sales and rising market conditions are prompting several Indian bullion dealers to import scrap gold and gold coins to several destinations in the Middle East, especially to Dubai.
In the last few years, India has been the largest importer and consumer of gold. In 2008, India imported around 400 tonnes of gold, which is mainly used for making jewellery items and gold coins. But in the last five months of 2009, India’s gold imports have fallen to negligible levels, compared to previous years, that bullion dealers are now importing scrap gold to Dubai.
India has so far imports only around 47 tonnes of gold this year.
Bullion dealers point out that there is a new-found love in gold between India, the world’s largest gold consuming country and Dubai, a top global gold trading city. Dubai which generally exports gold to India is these days importing the yellow metal from India.
In the last five months months-January, February, March, April and May-of 2009, India exported nearly 30 tons of gold coins to Dubai, the City of Gold, which has several large India-based gold jewellery show rooms.
Dubai, the biggest bullion market for trading gold in the Middle East, has been hit hard by high prices of the yellow metal. Dubai and other leading cities in the Gulf countries had reported crash in gold sales upto 60% for January, February and March in 2009.
It is not just Dubai, the City of Gold, that has seen bullion markets reeling under recession. Plunging gold sales, volatility in prices and economic meltdown have forced several leading gold and diamond jewelers across Middle East cities to halt all their expansion plans.
