• Linkdin

Gold sales increase by 20% in Q2, WGC

18 Aug '08
5 min read

In Dubai, the centre of jewellery demand in the UAE, an increase in tourist numbers had a positive influence on jewellery demand, especially towards the end of the quarter when the Dubai Summer Surprises campaign started.

The second quarter also saw the traditional pre-vacation purchasing of jewellery as gifts and an increase in advertising activity within the jewellery sector in both the UAE and Saudi Arabia. Historical trends suggest a strong correlation between jewellery campaigns and spending patterns in those markets, and this quarter was no different.

The fact that the 21K market which dominates sales has been more strongly affected by high prices than branded jewellery partly relates to the success of targeted jewellery advertising. This advertising coincided with the upcoming wedding and pre-vacation gifting season.

Retail investment tends to comprise a relatively small component of total offtake in the region. In the UAE, investment demand eased back from a very strong March quarter, but remains well above the levels of last year. The move back into bars and coins that started last quarter has continued.

The Middle East region is not experiencing the same economic concerns as other parts of the world, and this positive economic outlook should enable the recent resilience in gold demand relative to other parts of the world to continue. Nevertheless, the level of demand will continue to depend on both the gold price and its volatility.

James Burton, CEO of World Gold Council said:
"As expected, the continued high and volatile gold price, together with economies across the globe witnessing inflationary pressures and a tightening of consumer wallets, dampened consumer demand for gold in tonnage terms during the quarter. Despite this, consumers are continuing to spend more money on gold, even if they no longer get as much of it. This reinforces the positive attitude and buying intentions of consumers, and indicates that despite price increases, gold demand remains robust."

World Gold Council

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search