Commodity Online DUBAI: Where is the huge gold scrap being traded in the recent past go. Around 500 tonne gold scarp had entered the global market in the recent past. And this had affected the gold prices and demand as well.
Even as common people wonder about where the gold goes, it finds its way into the famous gold coin market in Dubai.
Gold coin making from scrap gold is a roaring business in Dubai.
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Countries like India which used to import gold from Dubai in the last month exported scrap gold to Middle East to make profits.
The export of gold from Dubai has increased by 29% in 2008 compared to 2007 export figures. This increase has caused the market in the Middle East to face an unprecedented shortage of gold.
As gold prices continued to rise and are expected remain high throughout the year, the cash strapped population is cashing in on their old gold.
According to experts, with Dubai scrambling for gold scraps, sellers looking for cash should take advantage of the shortage of the scrap gold and sell their gold easily and conveniently online.
Most of the scarp selling is happening online now. As gold continues to be the source of liquidity sellers of scrap gold and jewellery will continue to be in demand. Sellers will have to sift through the numerous online companies to find the best price for their gold.
Analysts do not foresee the scrap supply outrunning the interest in gold investments. This translates to continuous market for gold scraps.
Experts said scrap sales have slowed and physical demand has picked up now.
Gold demand in India, the world’s largest importer, firmed as traders stocked up ahead of the Hindu festival of Akshaya Tritya which falls on April 27.
The World Gold Council (WGC) said recently that India’s demand may rise during the Akshaya Tritiya festival, an auspicious day for buying precious metals even as gold prices are projected to further appreciate in the coming months.
According to a WGC report last month, gold investment in the Middle East jumped 38% in 2008 compared with 2007’s fourth quarter. Saudi Arabia saw a massive 300% jump in investment demand, Egypt 67% and other Gulf countries registered a 2% increase.
