UAE Gold Prices Boom expected to gold sales until the end of 2015
Expected number of traders in the gold sector and the jewelry to see the local market demand in gold sales during the remainder of the second half of this year, affected by what is happening in the oil, currencies and stock markets, arguing that the idea of the fact that gold a safe haven once again returned to many of the minds of buyers , with the decline in many of the financial instruments that compete with the yellow metal, particularly the stock.
They said the yellow metal prices worldwide, especially during the first months of 2015, and reached its lowest level in five and a half years, a convergence that in 2011 prices.
And confirmed the existence of strong sales in the domestic market is currently rising daily in conjunction with psychological investors improvement towards the yellow metal, and the arrival of prices to attractive levels, as well as having important occasions in the coming months, it is possible that these sales increases, including the festival «Diwali» Indian.
And detailed, predicted Managing Director and CEO of Jewelry «Pure Gold», Karim Merchant, help big declines for gold prices in the last period, the return of the concentration of buyers on the yellow metal as a savings tool, pointing out that these prices are the most temptation given the historical trading Gold during the past five years.
The Merchant of strong sales in the domestic market, up daily with psychological investors improvement towards the yellow metal, pointing out that there is an expected increase in consumer spending in local markets until the end of the year, especially as gold fell to its lowest level in five and a half years, as well as the existence of important occasions, it is possible to raise sales in the future.
He expected Merchant to achieve gold-growing double-digit, due to the series of the decline witnessed in prices, which attract the attention of consumers again towards the yellow metal, pointing out that the external data confirms that consumers will resort to in the coming period, especially with the volatility in oil markets, and currencies The affected stock.
He said that gold has proven itself over the years as a safe haven, regardless of price volatility in the short and medium term, stressing that «there is no alternative at the moment for gold.»
For his part, chairman of the Gold and Jewellery Group in Dubai, Tawhid Abdullah, said that «the price of gold reached a bottom during the first months of this year», confirming his return once again to build a good price levels by the end of this year, recalling many analysts international specialists views that gold reached a very low price levels entice many people to invest in it, as one of the safe havens in this period, with the rest influenced by other savings products.
He explained that the gold proved over its history that it is more saving coffers sustainability, unlike other financial instruments, pointing out that the value of gold and jewelry do not reach the low levels easily, like the rest of the goods, or savings products, including securities, what gives him an added advantage for the rest of the instruments.
Abdullah predicted that enhances the low price of gold in 2015 from domestic sales significantly, especially with the approach of the holiday season for Asian communities, notably the festival «Diwali» for the Indian community which is the most buy gold in the UAE.
He expected sales to grow during the second half of 2015 by 15%, thanks to the perception of the yellow metal, considered a safe haven, pointing out that it is estimated that savings share in gold continues to rise by many financial institutions and funds that invest in gold.
Abdullah felt that the economic changes taking place in global markets, particularly the currency war will contribute to the increase of gold sales total, as a hedge against what might happen in the currency markets, pointing out that the local gold markets have seen over the Aug. buy large movement unprecedented before, attributing this continued to decline for its price over the past months, and the situation is reassuring world markets.
In the same vein, expect CEO of Jewelry «Kalouti» Global, Tariq pistil, to see the local markets a strong rise in gold sales in the coming months, until the end of 2015, a reference to the low gold price globally, who arrived to below $ 1100 an ounce.
He stressed that these declines have encouraged many consumers to purchase.
He pointed out that this movement in the global markets will contribute to the increase of local gold market sales, which is confirmed by requests for wholesalers and retailers in the gold market, pointing out that the movement in the gold market has been able to stimulate the jewelry sector, which saw a large turnout during the past few days, after a period great stability in the market over the past year.
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