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Friday, 13th January 2006 (4551 views)

The popularity of gold in the UAE was barely touched by increasing gold prices in the past few years, according to the Khaleej Times.

Last year the price of gold grew by 25 per cent and experts foresee double-digit growth in the coming year as well.

However, this has had no impact on gold retail since as the price gold increases, the sale of gold seemingly increases with it.

Karim Merchant, managing director of Pure Gold, commented that the large majority of buyers are from the subcontinent, with Arab buyers from the Middle East coming a close second.

He also believed that there are two reasons for the price rise currently seen in gold: "One is inflation, and the other is because of new money coming into the market."

"Fund managers are becoming extremely rich because they are investing heavily in gold – [it] has become extremely popular as it has become accessible in the regional and international exchanges like the DGCX and London Metal Exchange."

"Gold is definitely more accessible than it was five years ago," he added.

The current price of gold in the UAE stands at Dh 7,490 per ten tola, with a 24-carat pure gold retailing at Dh65 per gram.

 

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