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Gold Flash 9 May 1997
Gold Economics
Dubai Gold Imports
Soar in Q1 1997
Gold imports into Dubai have jumped to an all time
high in the first quarter of 1997. At 154.9 tonnes, gold imports
so far this year are more than double the level seen in the
first quarter of 1996 (+107% vs 74.9 tonnes). Total
imports in 1996 into Dubai were just over 350 tonnes, a record
annual level, up 10% vs 1995.
Dubai serves as a major supply hub for gold into the Middle
East and Indian Sub-continent.
The latest surge in demand reflects buoyant domestic demand
for gold in the Gulf States together with increased supplies
into India and Pakistan, boosted by the relatively low gold
price prevailing throughout the quarter.
In Dubai, the Shopping Festival promoting Dubai as
the City of Gold contributed to increased imports.
Reports indicate that gold demand has been so brisk that some
types of gold bar are in short supply and European refiners
are finding it difficult to keep up with current demand levels.
In India, a good wedding season and a reduction in the price
premium in Rupee terms over the international price, following
the doubling of non-resident Indian import allowances, helped
to stimulated demand for gold.
Switzerland is by far the largest supplier of gold
into Dubai, accounting for 70%-75% of all gold imports, some
109.3 tonnes in the first quarter of this year. The
other major sources of gold shipments to Dubai are the UK
(34.4 tonnes in Q1’97, 22% share) and South Africa (8.3
tonnes, 5% share), an emerging source.
A full review of gold demand in the first quarter of 1997
covering the Middle East and other key gold markets will be
available as of May 22nd in "Gold Demand Trends"
Issue 19.
If you have any questions or comments on this input, please
address them to Rolf Schneebeli in our Dubai
office:
Tel. +971 4 314 500, Fax. +971 4 315 514 or
E-mail to wgcdubai@emirates.net.ae
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