More signs that gold is becoming scarce in the Middle East. The gold shorts days are certainly numbered. Those numbers could now be stated in days versus weeks or months.

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Shortage of Gold Coins hits Dubai Shopping Festival

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Commodity Online DUBAI: As gold prices zoomed to $900 per ounce on Friday in New York and London, buyers of the yellow metal are faced with a different kind of a problem in Middle East’s booming city of Dubai. There is an acute shortage of gold coins that is dampening the gold buyers at the annual Dubai Shopping Festival. The World Gold Council (WGC) is one of the participants of the ongoing mega Jan 15-Feb 15 Dubai Shopping Festival. WGC’s promotion of gold in Middles East during this festival every year has earned Dubai the ubiquitous name ‘City of Gold.’ But this year, Dubai’s biggest shopping carnival has been dampened by the shortage of gold coins, for which there is a big demand. “People are coming and asking for gold coins. But there is a terrible shortage of gold coins. Many gold and jewllery shops in Dubai do not have the stocks of gold coins,” said a manager with Joy Alukkas, a leading jewellery in the Gulf Countries. He said the main reason for the short supply of gold coins is primarily due to their heavy demand in Dubai, the main regional source for gold in Middle East. “All the jewelers offer special discounts and special offers for gold buying and thus there is a spurt in gold purchases. So there is a shortage of gold coins here,” the manager added. ALSO READ: Get all the hot news and features on Gold Coins here! World in mad rush for Gold coins India Post to offer free Gold coins to customers Gold coins in short supply, command 50% premium Gold jewelers are offering heavy discounts on purchases at the Festival. For instance, Damas stores have offered free gold coins with every purchase of gold and jewellery worth Dh500. “This mega promotion offered during the biggest regional shopping bonanza will give five shoppers the chance to win 100gm of gold every day and four lucky winners will also get an opportunity to win the grand prize of 1kg gold each,” said a statement from Damas. Ali Abdullah, a gold importer based in Dubai said the biggest demand during the Dubai Shopping Festival is for gold coins weighing 8gms or a sovereign. Gold coins of 2gm and 4gm are also available, mostly on demand. “The Dubai Shopping Festival is in fact Dubai’s gold festival. That is the reason for the shortage in gold coins,” he said. Abdullah said imported gold needs to be certified by the municipal authorities before they can be sold in Qatar. But the department did not function during Eid al-Adha. Hence whatever gold coin imports made could not be certified and that is one reason for the shortage, officials said. The jewellery sector had its ups and downs during the second half of 2008 with a significant increase in Q3 (Dh4.3 billion) in Dubai followed by a slight drop in gold jewellery consumption in Q4. In UAE, the increase in gold demand reached 22% in tonnage terms; equal to 56% increase in value terms.