DUBAI (Commodity Online): Gold experts at the Dubai Gold & Jewellery Group (DGJG), a group for Dubai jewellery industry has maintained that the future outlook for gold remains bullish and with the global economy going through fluctuations, gold will be highly sought after as an investment and the ultimate time-tested safe haven.
According to Tarek El Mdaka, Managing Director of Dubai based Kaloti Jewellery Group, an integrated gold and precious metals company with international presence in the physical commodity markets, gold would hover between a USD 800-1200 trading range during this year.
“With bullion forming majority of the gold and jewellery business globally and with growing interest in gold as an investment, it is only fitting that the conference is focused on this sector,” Mdaka added. Kaloti Jewellery complies with Dubai Good Delivery status and is a member of leading exchanges like the New York Mercantile Exchange (NYMEX), Dubai Gold & Commodities Exchange and the London Bullion Market Association (LBMA).
“At the peak of the banking crisis, there was concern about holding money in banks which led to an increase in the sale of gold bars and coins. Even though this fear is waning, there is still turmoil in the financial markets causing investors to diversify their portfolio. This trend is also reflected in the increasing interest in Gold Exchange Traded Funds globally. It is a healthy sign for the bullion market,” Mdaka maintained.
Commenting on the same, Mohamed Hassan O. Elzubeir, General Manager, Al Ghaith Gold DMCCA said, “In view of the existing economic crisis facing the world, gold makes a perfect safe haven for investors. Accordingly, demand for gold is expected to rise significantly over the next few months. Short gold supply will remain unchanged or drop. As such, high price will be a main feature of the future gold market. Investors will certainly increase the gold component in their investment portfolios. We look forward to the discussions at the City of Gold Conference on gold bullion and investment. ”
Al Ghaith Gold DMCC is a precious metals refinery operating under the Dubai Multi Commodities Centre Authority. “Dubai refineries have benefited from the steadily rising gold prices which lead to increased supply of scrap gold. Our production volumes have near doubled over the past two years of operation. In 2008 our total production volume was 34 tons while 2009 figure was 60 tons. The first quarter of 2010 saw a slow- down in the business due to drop in gold prices,” he added.
Dubai is hosting said the Seventh Dubai City of Gold Conference to be held on May 2, 2010. The one day international conference for the gold and jewellery industry is sponsored by DGJG. Other key supporters of the event include Dubai Multi Commodities Centre Authority (DMCCA), World Gold Council, Al Ghaith Gold DMCC and Standard Bank Plc. ScotiaMocatta is a support sponsor.
The event will have key international speakers will present and debate the future of gold bullion and investment at the event. The discussions will be led by Paul Walker, CEO of GFMS Ltd; Michael Mesaric, CEO of Valcambi SA; Walter de Wet, Head, Commodities Research, Standard Bank; Stewart Murray, Chief Executive, LBMA; and Raymond Key, Global Head of Metals, Deutsche Bank.
