Gold merchants across the country are braced for the busiest trading day of the year so far as sales of jewellery and bullion are expected to be given a double boost from today's Hindu festival of Akshaya Tritiya and a persistent bear market.
"There is a dramatic appetite for gold today. The Indian festival is important and also because of the price dropping," said Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.
Dubai has benefited from a renewed buyers' market in gold since the price plunged more than 20 per cent last month.
Investment funds that had hoarded the yellow metal since the start of the financial crisis sold off hundreds of tonnes in a matter of hours, sending prices through the floor.
Gold rose from less than US$850 a troy ounce in 2008 to more than $1,920 at its peak last September. After last month's sell-off, the price has been stuck in the low $1,400s and was last night at $1,436.55 an ounce.
The reduced price has ushered in a new wave of small-time investors with Indian and Chinese buyers coming to the fore.
"The 22-carat market is very strong on festivals like Akshaya Tritiya," said Kiran Pithani, the owner of Cara Jewellery in the Dubai Gold and Diamond Park.
"Indian buyers are crazy for 22-carat gold for these festivals. Akshaya Indians have to buy gold, it is good luck. When the price is as low as this they buy more. It's as simple as that."
Traditionally Hindus and Jains buy gold jewellery or trinkets made from the precious metal as gifts for festivals such as Ashkaya Tritiya in spring and Diwali in November.
This year, however, sales in the UAE are focused on small coins and ingots known as wafers or biscuits instead.
"Indians are buying less jewellery and more biscuits this year. Anything below $5,000 apiece is what we are seeing. There is very strong demand for these products," Mr El Mdaka said.
He added that sales of such small investment grade ingots and coins were given an extra boost this year as India has increased taxes on gold imports in an effort to exert tighter control on monetary policy.
"So there is a great arbitrage to be done here. If you buy in Dubai and travel to India with a couple of small coins or biscuits for your personal use you are making a couple of hundred dollars given the 6 per cent tax. Enough to pay for your flight. That is one reason why these products are so popular."
[ jdoran@thenational.ae ]
Results:
6.30pm: Maiden Dh 165,000 1,400m.
Winner: Walking Thunder, Connor Beasley (jockey), Ahmad bin Harmash (trainer).
7.05pm: Handicap (rated 72-87) Dh 165,000 1,600m.
Winner: Syncopation, George Buckell, Doug Watson.
7.40pm: Maiden Dh 165,000 1,400m.
Winner: Big Brown Bear, Pat Dobbs, Doug Watson.
8.15pm: Handicap (75-95) Dh 190,000 1,200m.
Winner: Stunned, Pat Dobbs, Doug Watson.
8.50pm: Handicap (85-105) Dh 210,000 2,000m.
Winner: New Trails, Connor Beasley, Ahmad bin Harmash.
9.25pm: Handicap (75-95) Dh 190,000 1,600m.
Winner: Pillar Of Society, Pat Dobbs, Doug Watson.
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
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3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
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7 Larry Page $56.8 billion
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10 Carlos Slim $55.2 billion
Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses
Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.
The Specs
Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now
RECORD BREAKER
Youngest debutant for Barcelona: 15 years and 290 days v Real Betis
Youngest La Liga starter in the 21st century: 16 years and 38 days v Cadiz
Youngest player to register an assist in La Liga in the 21st century: 16 years and 45 days v Villarreal
Youngest debutant for Spain: 16 years and 57 days v Georgia
Youngest goalscorer for Spain: 16 years and 57 days
Youngest player to score in a Euro qualifier: 16 years and 57 days
ASIAN RUGBY CHAMPIONSHIP 2024
Results
Hong Kong 52-5 UAE
South Korea 55-5 Malaysia
Malaysia 6-70 Hong Kong
UAE 36-32 South Korea
Fixtures
Friday, June 21, 7.30pm kick-off: UAE v Malaysia
At The Sevens, Dubai (admission is free).
Saturday: Hong Kong v South Korea
