Dubai Gold Bullion Demand "Has Doubled in 6 Months" - 16 August 2011

DEMAND for Gold Bullion has risen sharply in Dubai in recent months, according to gold traders in the emirate.

"In the past six months it has at least doubled," reports one Gold Bullion dealer, Chatan Dhakan of National Jewellery.

Dhakan has also noticed a broader range of customers coming to his store to Buy Gold.

"Traditionally Indian people bought more gold but now almost every nationality I can think of has bought Gold Bullion," he says.

Press reports last week told how strong demand was leading to a Gold Bullion shortage in Dubai – and higher premiums being charged on Gold Bars and coins, with some gold dealers raising their markup by up to 650%.

The Dubai Multi Commodities Centre Authority (DMCC) meanwhile unveiled the United Arab Emirates' first official Gold Bullion coin on Monday.

The five ounce "Khalifa" coin features a portrait of His Highness Sheikh Khalifa Bin Zayed Al Nahyan – president of the UAE – on one side, and an image of the world's tallest tower, Dubai's Burj Khalifa, on the other.

"This innovative Gold Bullion coin was conceived to satisfy the demands from investors seeking access to gold as protection against the ongoing global economic uncertainty," said DMCC executive chairman Ahmed Bin Sulayem.

Discussions are underway with the UAE's central bank to grant the new coin legal tender status – which would make it the first Gold Bullion coin in the Middle East to be afforded that status, the DMCC's website reports.

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