Fire-safety code is a work in progress


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Safety is never absolute; the world is too complicated and unpredictable for that. But well-ordered societies keep trying to reduce the risk from natural disaster and accidents.

It's a never-ending job, one that requires first prudent rule-making and then careful enforcement of those rules.

In July of 2011, the UAE adopted a Fire and Life Safety Code of Practice that includes safety requirements for buildings. Among other rules - minimum width for public stairwells, for example - the code identifies acceptable construction materials.

As The Nationalreported yesterday, aluminium exterior panels with plastic cores now face rigorous new tests that could lead to tighter rules. This reassessment seems obvious after a series of fires in which such panels were seen to be aflame. Hundreds of people were burnt out of Dubai's Tamweel Towers last week and two other recent fires, one in Sharjah and one in Dubai, also displayed this phenomenon.

Constant revision of safety rules in the light of changing experience is half the battle in fire safety. Successive versions of the UAE code, based in part on similar requirements in the US and UK, appear to have served the country well: evacuation and rehousing of tenants is a considerable annoyance. But this week's headlines from Dhaka, where over 100 died in one factory fire and another fire was reported yesterday, is a reminder of how much worse fire-safety standards can be.

While the constant need to update the rules is half the battle, the other half is enforcement. In Doha last May, 13 children and six adults died in a fire at a childcare centre; the problem was traced to faulty wiring, which had evidently not been properly inspected; officials are still trying to sort out criminal responsibility, if any.

Rigorous testing of materials, incessant compliance reviews and inspections to prevent problems such as blocked staircases are all easier to call for than to perform. Some people propose that inspectors should be required to identify danger spots on a quota system, but this can lead to arbitrary accusations not linked to the facts.

A better approach is for officials, from the top down, to make sure that inspectors are numerous, well-trained and efficiently used - and, of course, fair and respectful in their work. The need for safety never ends.

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Seo Ye-dam (KOR) bt Weronika Zygmunt (POL) by decision.

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Kaan Ofli (TUR) bt Walid Laidi (ALG) by TKO.

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Jaures Dea (CAM) v Nawras Abzakh (JOR) no contest.

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How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.