Oct 13, 2011 3:47 am
In a trend that could spread throughout the globe, gold buyers in Dubai have made some surprising moves. In the past their focus was on buying gold jewelry. The demand for gold jewelry in Dubai is driven by the demand in India who just happen to be the number one consumer of gold on the planet. That used to be based on jewelry. Jewelry with some expectation to be collected and possibly worn was for a long time the rule for Dubai gold buyers. Of late though there has been a clear switch to purchasing bullion.
This shift is very meaningful to people interested in the prospects of gold prices, particularly a NY gold refinery who does business in gold in all of it's forms. What it means is that Dubai is shifting from a functional gold market to one that is increasingly acknowledging of gold for strictly investment purposes. This means as time goes on more and more folks in Dubai will have their savings tied up in gold futures.
Of course gold refiners in New York have been on to this shift for a while now. This is a lucky break as many of our local investors have a jump on the market. When it comes to a finite resource like gold getting in early matters.