Gold consumption in Dubai rose 10 per cent to 100 tonnes in 2004 despite the 12 per cent increase in the year-on-year average price.
This, according to gold traders, is because consumers still maintain their belief in gold as an effective investment.
Official statistics just released by the Dubai Metals and Commodities Centre (DMCC) indicate that Dubai, popularly known as the City of Gold, is strengthening its already solid position as one of the most important global hubs for the gold industry.
According to Colin Griffith, DMCC's executive director for gold and precious metals, the substantial increase in overall trade and value is due to several factors, including higher international gold prices, an increase in business flows, particularly scrap refining, and the steady growth of the gold trade with India.
The figures confirm Dubai's status as a leading global hub for gold and the city's excellent spread of business partners, trading with 91 countries, the largest of these being India, Switzerland, Saudi Arabia, Singapore, Italy, Pakistan, Malaysia and the United Kingdom.
These impressive figures are expected to increase during the next few years as a result of the additional trade of kilo bars through the soon-to-be-launched Dubai Gold and Commodities Exchange.
The growth of local refining and manufacturing, added to the very high consumption of gold products by local residents, and the ever-growing number of tourists will drive volumes higher.
DMCC is committed to working with the Ports, Customs and Free Zone Corporation to release Dubai's gold import and export figures on a monthly basis, thus providing much-needed consistency and transparency for the industry.
The data is available on DMCC's website and other channels.
Gulf News
