Gold AE trade volume hits $500m in 2011
Dubai, December 28, 2011
Gold Arab Emirate (Gold AE), which primarily provides 24/7 spot trading of gold and silver bullion, had over $500 million total trade volume in 2011, mainly from Dubai, Turkey, Kuwait and Switzerland branches.
Dubai, in particular, has generated substantial trade volume driven by the continuing surge in local demand, as local imports have reached up to three tonnes of gold each year.
Statistics from the Dubai Multi Commodities Centre (DMCC) Authority show that the total gold trading volumes in the first half of 2011 reached 580 tonnes (average price $1,455), with exports down from 225 to 214 tonnes highlighting a greater consumption in the local market.
Gold AE, which is licensed by Dubai Multi Commodities Centre (DMCC) Authority, expects trade volumes to further increase as gold remains the best investment, a statement said.
The UAE has traditionally been a major gold trading hub, a Ministry of Foreign Trade (MOFT) study showing the country to be among the world's top five gold traders from 2005 – 2009, ranking second globally in gold imports in 2009 alone with $14.5 billion worth of gold imports which is equivalent to 16.6 per cent of global imports.
In the same period, the UAE ranked third globally in gold exports with a 10 per cent share of global exports at a value of $10.5 billion.
“I believe that gold is the only safe-haven investment for 2012 and everyone shall have at least 20 per cent of their portfolio in physical gold. In this regard, Gold AE therefore serves as a gateway for investors by offering a wide range of alternative solutions for gold investments. I also believe that gold price will reach over $2,500/ounce by the end of 2012,” said Mohammed Abu Al Haj, vice-chairman and CEO of Abu Al Haj Holding and the chairman of Gold AE.
“Nobody can deny that inflation and possibly hyper-inflation will take place in 2012, and the only thing that can protect an individual’s net worth from such inflation is gold. Money can be printed, gold not! For that reason gold always keeps its value. Moreover, I believe that Dubai will be the main gold hub in the world since it has the best logistics and investors’ supply/demand satisfaction,” he added. – TradeArabia News Service