Demand for gold is set to soar as indications of a further decline in the US dollar are emerging, analysts attending the opening ceremony of the MidEast Watch and Jewellery Show at Expo Centre Sharjah said on Tuesday.
The greenback is already ailing and any further quantitative easing by the US Federal Reserve could undermine the US dollar, thus encouraging investors to flock to gold as a store of value, they said.
Gold, which often moves counter to the dollar, has advanced 17 per cent this year and is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920.
It hit a record high at US$1,293.35 an ounce in the middle of last week, with predictions of US$1,500 doing the rounds among economists. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investments in gold.
The latest edition of the MidEast Watch & Jewellery Show, which was opened today (September 28, 2010) at Expo Centre Sharjah and continues until October 2, will be a catalyst for jewellery sales, said the experts.
The 29th edition of the show was opened by H. E. Sheikh Sultan Bin Ahmed Bin Sultan Al Qassimi, Chairman, Sharjah Commerce & Tourism Development Authorities
"Demand for gold will remain strong during the rest of this year as a result of accelerating demand from traditional gold-consuming countries, as well as increasing global investment demand driven by continuing uncertainty on stock and currency markets," said Mr Ahmed Mohammed Al Midfa, Chairman of the Sharjah Chamber of Commerce & Industry (SCCI), after the opening ceremony.
"Though investment demand is high, consumers in this part of the region are more comfortable with gold jewellery and this is reflected in the rise in retail sales of the precious metal in the past quarters. With gold prices forecast to rise further, this is an opportunity for both investors and the common man to park their funds in the safest investment option available now," said Mr Ahmed Mohammed Al Midfa.
According to World Gold Council, global jewellery demand remained healthy in the second quarter of 2010 with consumption totaling 408.7 tonnes. Total gold demand in the second quarter rose by 36 per cent to 1,050 tonnes.
"We are optimistic that sales figures will surpass that of the spring edition of the MidEast Watch and Jewellery Show. The feedback during our marketing campaigns has been fantastic across our target markets," said Mr Saif Mohammed Al Midfa, Director-General of Expo Centre Sharjah.
"People are buying into the rising price in anticipation of further gains. Besides, economic uncertainties and the ongoing search for less volatile and more diversified investments such as gold are likely to underpin demand for gold in the immediate future," said Mr Saif Mohammed Al Midfa.
The MidEast Watch & Jewellery Show is featuring more than 450 master jewellers and jewellery houses from all over the world who are exhibiting diamonds, pearls, precious stones, gold and diamond jewellery, diamond and pearl sets, crystals, watches, jewellery displays, and different kinds of tools used in the trade at nearly 16,000 square metres of floor space.
"Apart from the rising demand for gold, a key factor that will increase footfall to the show is the surge in the attraction for diamonds and diamond jewellery. During the past editions of the show, we have seen that diamond off take is growing steadily across all visitor segments. This is set to continue this time too," said Mr Saif Mohammed Al Midfa.
Exhibitors for this year's show have come from Armenia, Italy, Bahrain, China, Lebanon, Qatar, India, Jordan, Japan, Lithuania, Myanmar, Saudi Arabia, Singapore, Thailand, Turkey, Malaysia, the US and the UAE.
National pavilions from Hong Kong, India, Italy, Singapore, Malaysia and Thailand will continue to be the centre of attraction at the show.
With 60 participants, the Hong Kong Pavilion has the largest number of exhibitors, showcasing the manufacturing excellence and exclusive designs from the country. India will have 48 exhibitors, Italy 30, Lebanon 25, Singapore and Malaysia 20, and Thailand 15 exhibitors.
Special attractions at the show include fabulous prizes. On every purchase of Dhs500, visitors will have a chance to qualify for a daily raffle draw to win fabulous prizes.
The general visiting hours of show will be from 11am to 10pm. Special ladies timings are from 11am to 4pm on September 29 and October 2. On October 1, Friday, the show will be open from 4pm to 11pm. Entry and parking are free.
The exhibition is being organized by Expo Centre Sharjah with the support of the World Gold Council and the Sharjah Chamber of Commerce and Industry.
