Gold News

Gold jewelery demand soars in Middle East

Gold demand has plenty of eastern promise to toast after World Gold Council (WGC) figures from the second quarter of 2007 revealed a huge increase in gold jewelery sales.

Saudi Arabia, the fifth largest market for jewellery, saw demand for gold jewelery products rise 30 per cent on the same period last year, with the United Arab Emarites also showing a new penchant for the precious metal, with demand up 18 per cent over the same period.

Across the region demand for the precious metal and for jewellery containing it rose considerably over the year, with buyers in Kuwait, Bahrain, Oman, Qatar and Egypt contributing to a regional rise 21 per cent for gold jewellery demand.

Experts are pointing to changes in the conditions for gold imports, such as Saudi Arabian legislation to reduce the duty on jewelery importation from 12 per cent to five per cent, as a stimulant to increasing demand.

Meanwhile the Gulf News reported a different explanation from Moaz Barakat, WGC managing director in the region, who attributed the Middle East gold boom principally to the stability of the price of gold.

"A reduction in price volatility in 2007 has resulted in increased consumer confidence and, coupled with greater industry marketing activity, led to record levels of gold jewelery purchases in the region," Mr Barakat was reported to say.


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals