Dubai 2005 Gold Imports Increase to 522 tons

Despite gold prices reaching 25-year highs in 2005, Dubai gold imports rose to 522 tons, up from 502 tons in 2004. Local gold sales in Dubai increased to 115 tons. This figure included imports and exports for gold bars, scrap, and jewelry.

The Dubai Metals and Commodities Centre (DMCC) today announced that according to a recent report by GFMS, an independent, London based consultancy and research company, world gold supply averaged 3,977 tons in 2005. This means that one out of every eight tons of gold supplied in the world comes to Dubai.

“Dubai is known as the City of Gold, and these statistics support that,” said Colin Griffith, executive director-gold & precious metals, at the DMCC. “The rising price has been driven by investors who look at gold as a secure asset class, rather than by end users, despite a steady growth in consumer demand from China and India.”

“Demand from the Middle East has also witnessed an average annual increase of five to 10 percent, backed by high regional liquidity and the security of gold as a stable asset in uncertain times,” Griffith added.

“The establishment of the DMCC has gone a long way towards streamlining and making the local markets more transparent and thereby growing the volume of gold trade through Dubai. We estimate that the current volume of 522 tons will continue to increase in 2006. A significant percentage of this growing volume is also expected to be undertaken by companies under the umbrella of DMCC,” said Griffith.

“Recent research and estimates for 2006, envisage that the surge in gold prices is expected to continue over the year with prices remaining very volatile and probably touches US 600 an ounce,” he added.

Dubai's main gold trading partners remain India, Switzerland, the UK, Malaysia, Saudi Arabia, the USA, Singapore, and South Africa.