Author: Paul Ploumis08 Apr 2014 Last updated at 03:27:15 GMT
DUBAI (Scrap Monster): A massive US$ 75 billion of gold (2,250 tonnes) was traded through Dubai in 2013, indicating 73% increase over 2012. It represents almost 40% of world physical trade volumes and will grow by further years. Last year, the total global demand on gold has plunged by 15%, however, John Hathaway, US-based analyst and portfolio manager for Tocqueville Asset Management said at Third Dubai Precious Metals Conference 2014.
The large migration of physical gold from financial centres made Dubai as the supply centre of the global gold market. Most of the gold supply goes to Asia as the emerging middle class buys and invests gold for next generation, he added.
Though gold production only grows 1.5% per year and the market gets a huge supply deficiency, Dubai’s gold trade has balanced the global demand and supply. The transparency of trade, location and rising number of tourists are the key reasons to boom Dubai’s gold trade, Hathaway said.
Gautam Sashittal, Chief Executive Officer, DMCC said that Dubai has been playing as a hot spot of the global business for very long time because of its strong physical and financial infrastructure environment which makes people from East and West to invest more confidently.
As part of the company’s excellence in gold trade, the Dubai Gold and Commodities Exchange (DGCX) has been looking forward to bring a spot gold contract by this June, the exchange’s chief executive Gary Anderson said.