Dubai’s gold markets drift away from recession

Jewelry dealers expect to enjoy the gold markets in Dubai, both retail and wholesale, prosperity and growth through the year 2015, making it drift away from the recession that hit the various markets around the world, although that seen in the yellow metal prices fell, comes the recovery of the growing Gulf and Chinese and Indian demand.

And the increasing gold glitter in the Emirate of Dubai fainter and brighter, with the launch of figures Dubai Shopping Festival, which not only contribute to the revitalization of the demand for gold jewelery, but also contributed to the rise in demand for gold bullion, which infused the current festival cycle distinct position ..

Where the festival is no longer just a yard only attract buyers from around the world, but it is also as well as an outlet to stimulate sales of the brunt of the recession that hangs on the gold markets in the entire world, which made more like a festival as a lifeline for traders gold jewelery who to hide for cover from the vagaries of The yellow metal prices.

These positive developments and painted a scene of the demand for gold is totally different from the scene prevailing in different markets of the world recession, which would win the gold markets in the Emirate of Dubai, the status of a distinct, reflecting the boom and the recovery of the emirate’s economy, and the multiplicity of tributaries feeding the demand for the yellow metal, and highlights in her lead request Asians, who turned out to buy Alzhb- according to the sayings of a trade the boldly unusual.

Traders attributed the reasons for the exceptional situation of the markets Dubai to possess strong elements make them able to achieve sustainable growth, thanks to the available options and a variety of products from market volatility flanked on one side and put it in a location beneficiary of any changes in price trends on the other hand ..

They benefit from the rise of prices, which feeds the investment demand for gold, as well as the benefit to the same extent from lower prices, which supports and strengthens the demand for gold jewelery. He also dug in against the risk of recession some markets, thanks to the diversity of portfolio trading partners.

Recession world markets

In this context, it was revealed the latest report issued by the World Gold Council, gold demand fell 21% in the third quarter of 2014, with the exit flows of ETFs backed gold fell Purchases India consumer President, who dominated the high jewelry, coins and gold bullion sales.

The report pointed out that the volume of the precious metal consumption fell to 868.5 tons in the third quarter, the lowest level in four years of 1101.4 tons in the corresponding period of last year, as the total investment demand fell 56% to 185.5 tonnes in the third quarter with index funds backed by gold 118.7 sale tons of metal and landed Purchases central banks 17%, or 18.9 tons in the period.

The data showed low demand informal sector by 25% in the first nine months of the year to 296.9 tonnes from 393.6 tonnes. Traders and take it to the state of prosperity that prevailed in the gold market in Dubai, it represents one of the few exceptions to flourish around the world

Where the recession hit hard the majority of the major markets in the world, which is reflected in the investment demand, which shrank and fell, because of the price movement within a price range that is limited, which is heavier on the attractiveness of investment returns compared to other investment pools such as real estate and stocks.

Diversity of trading partners

In this context, Tawhid Abdullah, chairman of the Gold and Jewellery Group said. The gold markets in the Emirate of Dubai is not in isolation without affecting the crises facing the world at the present time, such as those related to the Ukrainian crisis, and the escalation of unrest in some Middle East countries and the decline in oil prices, but the reduction is expected to ask for some markets, will be compensated by the increase in demand other markets …

It is expected that the number of tourists coming increasingly from China, India, and is reinforcing the continued demand for buying jewelry from Dubai markets, and the increasing demand of the Gulf and the Middle East will give further impetus to buy jewelry from Dubai markets ..

In addition, the decline in price, enhances the strength of domestic demand to buy jewelry, especially gold jewelry formations. Tawhid Abdullah explained that jewelry sales in the state experienced during the years following the 2010, prosperous and rebound great, in a manner contrary to what was the case in the next two years to 2018, which saw the escalation of the global financial crisis, including the concomitant decline in jewelry sales value ..

Which would boost trade to focus on re-arranging their situation, and motivate them to give more emphasis on creating new designs attract different consumer segments, including the younger generation, which began in demand for buying jewelry, reflecting traders reap the fruits of the efforts they have made over many years to attract youngsters to the jewelry sector.

A global center for the jewelery trade

Tawhid Abdullah stressed that Dubai is a leading global destination in the jewelery trade, has established its status distinct and unique over a period of time ranging from twenty to twenty-five years ….

It also strengthened its position in this area as a result of combination of many elements, starting with the preference of the international companies have based their operations and activities, and through the establishment of DMCC, being a government initiative aims to consolidate the status of the emirate’s global gateway for trade in goods, through to the formation of the Dubai group of gold jewelry and charged with responsibility to promote jewelery trade in the Emirate of Dubai.

He added: «Although the roots of the jewelery trade in Dubai extends to many years ago, but they did not witness the scintillating success like this, only in the past few years, which is reflected in the success dazzling in a diverse mix of various segments of the jewelery trade, which is rarely found attract this momentum forces in other countries, and this includes a diverse mix, multiple categories, including wholesalers and retailers, distributors and designers ..

And other groups. And for that Dubai is a leading center for the jewelery trade worldwide, as they form a link between the jewelry markets in the Middle East, which is one of the world’s fastest-growing markets in the jewelry trade. »However, saying: «to the UAE market for gold, is the most unique and distinctive in the world ..

Where it meets the cultures of the spectra of a variety of jewelry and multiple, which descend to the various regions of the world, including India, China, Japan and the Gulf Cooperation Council ». The Tawhid Abdullah expressed his confidence in the ability of jewelry markets in the country to achieve sustainable growth, pointing out that the Middle East to acquire interest at a rate between 35 to 40% of the jewelery trade worldwide ..

This includes gold and diamond jewelry. He said Tawhid Abdullah The competition is heating up between the jewelery industry by, and electronics sector to attract consumers slices of young people ..

He pointed out that there is still a lot that needs to be done in order to accept young people to buy jewelry, despite the huge efforts that have been made in this area, that draws jewelry trade more attention to innovation designs suit the tastes of the young, and the launch of an awareness and educational programs aimed at this group of consumers.

The stability of the yellow metal prices

In the same vein, Karim Merchant values Chairman of the Board and Chief Executive Officer of the company «Pure Gold» performance of the jewelery market in the country during the year 2014, he grew a huge supported by positive realized effects due to price recorded by the yellow metal in recent times, where he became the prices at the present time , does not constitute a major priority for consumers, but has become a quality and design at the top of their priorities.

He added: «We have seen a growth in demand for jewelry during the year 2014, especially diamond jewelery, and we believe that this growth will continue in 2015, and contribute to diamond jewelry, which represented 60% of total sales, and constitutes the international market form permanently main engine for the growth of sales gold in Dubai …

Other external factors like the revitalization of the Chinese market and Chinese demand, also affect the price of gold. And is associated with these considerations, the initiatives launched by the UAE government, and aimed at the promotion and protection of Commerce and Industry gold ». Merchant explained that the stability of the price of gold was the most significant growth in the jewelry sector worker …

After having prices fell last year by 28%, consumers became more able to withstand the current price levels recorded by the yellow metal, which would have a major impact on gold sales growth ..

He pointed out that jewelers walk in 2015 and they have great confidence in the attractive offers that they offer, where «Pure Gold» offered a discount of 70% on the collections of diamond jewelry, which strengthened the sense of comfort and peace of mind with their customers.

Supportive government initiatives

In response to a question about the extent to which the partnership between the public and private sectors in promoting infrastructure conducive to promoting the growth of the jewelery industry in the state, Merchant replied, «The UAE government has launched several initiatives aimed at supporting and promoting the growth of diamond and gold industry, through the development of regulations regulatory laws favorable and appropriate for the start of this sector on a sound and strong foundations ..

The government is also organizing promotional tours and visits in many countries, in order to highlight the strengths of the jewelery industry, for example, and not as a limitation, completed advanced Dubai Commodities Centre infrastructure of world-class ..

Also presented a high of development and modernity services, which would be strongly helped the growth of the jewelery industry ». And accept Merchant prominent ingredient in support of the brilliance of Dubai as a regional hub for the jewelery trade in the year 2015, by pointing out that these supporting elements include both tourism and infrastructure, as well as increase awareness in other countries on the merits of the jewelery industry in the emirate, and by organizing campaigns and promotional visits in other countries ..

And participation in international exhibitions and conferences. He added: «We believe that the government and private sectors may have made every effort in order to raise the profile of Dubai in the global jewelery trade, we owe the positive impact of these efforts in the success of our expansion plans and we achieve significant growth in the size of our business.»

Attractive investment option

In the same context, Manish Dmani retail sales manager, said company Dmani for jewelry, the retail trade in the jewelery sector in Dubai is growing steady and regular paces, backed by the arrival of a lot of tourists and visitors from different regions of the world, which dates back to the leisure goods sector substantial benefits, including the jewelery trade. Manish explained that Dmani company belongs to the luxury goods sector ..

And works with designers come from several centers for the jewelery trade around the world, including Paris, London and New York, which can be documented relate to the various trends in the different markets for the jewelery trade, and supports awareness objects of the evolution of consumer tastes, although the company is keen to have formed her jewelry taste private and outstanding, which reflects the cultural heritage of the UAE.

Thus, gold jewelery traders are taking advantage of the celebration situation that prevailed in the city of Dubai throughout the year in the revitalization of their sales, which consolidates the conviction that the City of Gold is not just a monolith Jewelry ingeniously and bewitching, but also a haven for traders gold jewelery in troubled times, similar to the role played by the metal yellow times in which Tthbld the clouds of uncertainty and make sure, as a result of high inflation, and rising political tensions.

15% growth expected for the diamond trade in the Gulf in 2015

Chairman of the Board and Chief Executive Officer of the company «Pure Gold» Karim Merchant predicted that the demand for diamond jewelery in the Gulf Cooperation Council (GCC) to grow during the year 2015 by between 10 to 15%, and is expected to continue diamond trade growth in the UAE during the year, supported by the availability of structure developed infrastructure and continued support.

In response to a question about the essential drivers enhanced the growth of the diamond market in the UAE in 2015, Merchant replied: «there must be a basic requirement in order to grow any market, and constitute a promotional campaigns, a key factor in supporting the diamond trade in Dubai, not only at the regional level, but also at the international level, the domestic market growth for the diamond trade, that actually leads to the growth of the global diamond trade ».

Merchant explained that the strengthening of the relationship between the diamond market in Dubai and emerging markets in India and China is through awareness about the advantages of quality and prices of buying diamond cutting of Dubai.

Gold prices expected to stabilize this year

Merchant said that stability has returned once again to the gold markets during the year 2014, after prices fell in the year 2013, and is expected to continue to stabilize the dominant state on the gold market in 2015.

And therefore, can be considered the gold as one of the best investment options during the year 2015, noting that many people accept many people to buy gold jewelry, coins and bullion, which confirms that consumers still have confidence in the high value of gold.

He added: «There is no doubt that Dubai will continue its march towards the strengthening and repositioning of a leader in the world of gold, and gold certainly benefit from the growth of consumer demand for metals, and a growing number of investors in the region».

Jewelers reap the gains of recovery

Encouraged the state of prosperity and recovery is sustainable for the gold trade, a lot of traders to follow an ambitious and bold expansionary strategies during 2014, that became targeting expand their business and operations in the markets of many parts of the world, including the GCC and the Middle East, Latin America and Southeast Asia, in a move of their own to maximize the earnings power of the gold market in Dubai.

In this area, Karim Merchant said: Pure Gold Company will continue during the 2015 march expansion in the UAE and the GCC, as the markets of strategic importance for her ..

In order to enhance our presence in all the important locations of retail outlets, where it plans to open 25 shops throughout the GCC countries, pointing out that the expansion is part of the company’s success in achieving high levels of maturity and sophistication over the past years ..

Which is embodied in the possession of some 125 shops spread over many countries of the world. Merchant explained that the company’s mission became focused on delighting customers, providing the best services and designs and configurations most distinctive and unique, acceptable and affordable. In response to a question on sales achieved by the company in 2014 the size of what the size of your sales in 2014, Merchant replied: sales achieved during the year 2015 positive growth, and we were able to reach the targets set for this year. We have achieved double-digit growth.

The rise of Chinese demand

Manish Dmani retail sales manager, said company Dmani Jewellery Manish, that I have a jewelry markets in the state, the potential and capabilities that qualifies them for a reasonable share of Chinese tourists spending, which reached a total value of $ 100 billion a year, where Chinese tourists accept the purchase sector Jewelry check them real added valuable ..

And prefer to buy formations diamond jewelery weighing between 2 ranges to 5 carats, is also keen on jewelry segments during their stay in Dubai, in order to reap the benefits of relatively low prices compared to other markets approximately the world, and the strength of the organization of these markets that make them feel reassured by the quality of the jewelry they buy, not to fall victims of the scam, make them buy fake jewelry pieces.

Manish and monitor the growing number of consumers of jewelry coming from the African continent, especially Nigeria, where they accept to come to Dubai in order to benefit from the advantages of a market for luxury goods on the high degree of progress and development.

Add a Comment