International experts will converge in Dubai next month for a one day conference organised by Dubai Gold & Jewellery Group to discuss the future of gold.

Over 300 delegates are expected to attend the 7th 'Dubai City of Gold Conference', which will be held on May 2 at the Almas Tower.

The experts including Stewart Murray, chief executive of London Bullion Market Association (LBMA), Walter De Wet, Head of Commodities Research, Standard Bank, Chandu Siroya, vice chairman, DGJG; Ahmed bin Sulayem, executive chairman, DMCCA and Victor van der Kwast, Global CEO, BN AMRO Diamond & Jewellery Group will discuss the challenges facing the industry.

For the bullion market, the main challenges are to respond appropriately to the various regulatory pressures that have been generated by the financial turmoil of the past two years, remarked Stewart Murray.
 
'The jewellery industry on the other hand is facing very different challenges, including possibly having to contend with a sustained period of high prices and low consumer spending on jewellery.'    

“Gold has always been regarded as the only major asset class which is no one else’s liability. However, at times, it has suffered from its dual nature as a commodity and an investible metal,' he noted.

'When the supply and demand fundamentals have been perceived as poor (unlike recently) and when the return on holding gold was much lower than that for other investment vehicles, the incentive to hold gold has been much lower than it currently is,' Murray added. 

“Gold’s value as a safe haven depends very much on whether people who do not hold it wish to buy it and whether people who do hold it wish to sell.  Such decisions depend as much and perhaps more on the conditions in the wider economy than on the supply demand fundamentals of gold itself.”

At the one-day conference, Walter De Wet will speak on ‘Gold Outlook: A physical demand perspective’.

He will focus on how different the 2010 physical gold market to date has been compared to 2009 and how that may impact as a driver for metal moves throughout this year.

According to Alison Burns, regional head of Precious Metals Mena at Standard Bank, Dubai Branch: 'As far as the main challenges facing the gold and jewellery industry are concerned, we would suggest that market participants need to pay attention to the continued likely volatility of the metal prices this year which as usual would suggest the need to hedge stocks and any other open positions.'

'The overall current global economic environment will continue to throw up increasing further challenges in terms of consumer demand but we feel confident that if the market rallies together at events such as the 7th Dubai City of Gold Conference and share suggestions for improving turnover and profitability that such challenges can be certainly better mitigated against,' he added.

The speakers line-up at the event includes Paul Walker, CEO of GFMS; Michael Mesaric, CEO of Valcambi SA; Raymond Key, global head of Metals, Deutsche Bank; Yogaani Bhatia, country head, UAE, World Gold Council; Kiranjit Singh, director and head of Synovate Business Consulting, Malaysia; Bijou Kurien, president and chief executive, Lifestyle Division, Reliance Retail, India; Sandeep Kulhalli, vice president-Retail & Marketing-Tanishq Titan Industries, India; and BS Nagesh, vice chairman, Shopper’s Stop Ltd, India.

At the conference World Gold Council, will unveil the results of its survey on developing the gold investment sector.

The Dubai Pearl Exchange (DPE), a subsidiary of the Dubai Multi Commodities Centre Authority (DMCCA), will honour the eleven student finalists of Pearl Essence, the world’s first-ever global pearl design initiative encompassing all different types of pearls, at a combined Gala and Awards Ceremony at the conference.

Dubai Multi Commodities Centre Authority is the prenting sponsor and World Gold Council, Standard Bank, Kaloti Jewellery, Al Ghaith DMCC are the key sponsors of the event and support sponsor is ScotiaMocatta.