Gold’s rollercoaster ride has had its plusses and minuses for both investors and consumers. While 2011 saw investment demand driving global sales of gold to 4,076.1 tonnes, the highest tonnage level since 1997, the prospects for both jewellery sales and investor demand look brighter in the short term owing to drop in prices.
According to the World Gold Council, total investment demand for the Middle East grew 15 per cent to 34 tonnes in 2011, with most of the growth being generated by Saudi Arabia and the UAE. Both the countries generated the strongest levels of annual bar and coin demand for 14 years, of 16.4 tonnes and 12.5 tonnes respectively.
Bringing smiles back to the faces of consumers, gold, after peaking near US$ 1,740 at the end of February, dropped to under US$ 1,600, prompting those who had held back on purchasing to buy on the dip. It is currently trading in the range of US$ 1,650.
Catering to the demands of both the investors and common buyers, the 32nd MidEast Watch & Jewellery Show got under way on Tuesday (March 27, 2012) and will continue until Saturday (March 31, 2012).
The five-day show was opened by H. E. Sheikh Sultan Bin Ahmed Al Qassimi, Chairman, Sharjah Media Corporation. The opening ceremony was attended by Mr. Ahmed Mohammed Al Midfa, Chairman of the Sharjah Chamber of Commerce & Industry (SCCI), Mr. Saif Mohammed Al Midfa – Director-General of Expo Centre Sharjah, officials of various government departments, and members of trade associations.
“Gold prices have fallen considerably since the end of last summer and could fall even further in the weeks ahead. Pullbacks in prices are always a golden opportunity to buy and this should not be missed by both investors and consumers to spruce up their portfolios and collections,” said Mr. Ahmed Mohammed Al Midfa.
Swiss investment bank UBS expects gold prices to average US$ 1,550 in the short term, almost 13 per cent lower from a previous forecast of US$ 1,775 per ounce.
However, the yellow metal will bottom out and a rally will begin, taking gold above US$ 2,000 later this year if the Eurozone crisis worsens, according to leading independent macro economic research consultancies Capital Economics.
“Until then, bargain gold buyers can have a field day and what better opportunity than the region’s most popular jewellery fair, the MidEast Watch & Jewellery Show,” said Mr. Ahmed Mohammed Al Midfa.
For its spring edition, the show is occupying a total exhibition area of 20,000 square metres and hosting more than 450 master jewellers from around the world, attracting importers, retailers and private collectors from across the Middle East region.
“When it comes to a comprehensive show that brings together the best names in jewellery manufacturing, designing and retailing from across the world, there is no other fair in the region to match the size and elegance of the MidEast Watch & Jewellery Show,” said Mr. Saif Mohammed Al Midfa.
Diamond sales are also soaring in the region. Globally, the demand for rough diamonds is expected to grow at an average rate of 6.6 per cent to almost US$ 23 billion by 2020, according business consultancy Bain & Co. The rising demand is being fuelled by increased consumer spending on diamond jewellery in Middle East, China and India.
In a novel initiative, Expo Centre Sharjah, in an attempt to demystify diamonds and bring it closer to a wider target audience, is hosting a first-of-its-kind seminar during the show.
The IGI Seminar Series sessions will be held in association with International Gemological Institute (IGI), the world’s largest independent gem certification institute. The seminar on the theme ‘Know Your Diamond’ will be held at the Seminar Hall of Expo Centre on March 29 and 30 from 6.30pm to 7.30pm.
“Apart from gold and diamond jewellery, finely crafted watches are also a big draw for visitors,” said Mr. Saif Mohammed Al Midfa.
According to latest data released by the Federation of the Swiss Watch Industry, the UAE was the Middle East’s biggest market for luxury watches in 2011. The UAE was the world’s ninth biggest market for watches, worth US$ 658 million between January and November 2011.
For its 32nd edition, the show is displaying extensive collections of diamond and gold jewellery, pearls, silver jewellery, gems, precious stones, loose pearls, pearl sets, crystals, watches, timepieces and clocks from Armenia, Bahrain, Brazil, China, Hong Kong, India, Italy, Jordan, Japan, Lebanon, Lithuania, Malaysia, Myanmar, Qatar, Saudi Arabia, Singapore, Thailand, Turkey, the US and the UAE.
Exciting prizes are an integral part of the show and this year too there are fabulous rewards for visitors. On every purchase of Dhs. 500, they have a chance to qualify for a daily raffle draw to win exciting prizes. The Hong Kong Pavilion is also giving away prizes to visitors.
The show is open to general visitors on Tuesday and Thursday from 11am to 10pm and on Wednesday, Friday and Saturday from 4pm to 10pm. Exclusive timings fore ladies are on Wednesday and Saturday from 11am to 4pm.
The exhibition is being organised by Expo Centre Sharjah with the support of the Sharjah Chamber of Commerce and Industry.
