As a major air travel hub, Dubai has long been a melting pot of cultures and peoples from around the globe, linking the US and Europe with Africa and the Far East. Indeed, this was a major factor behind the decision to proceed with Dubai Expo 2020 later this year and the huge effort and cost that has been invested in the project. However, there is a shadow creeping towards this huge enterprise.
Coronavirus, or Covid – 19 as it has now been designated, could cast doubt over the success of our huge Expo project.
So far there have been only nine confirmed cases of the highly infectious condition here in Dubai and most of those infected have been Chinese nationals. Thankfully, there have not yet been any fatalities resulting from the virus in Dubai but while the world waits to assess the ongoing risks, travel disruption, restrictions and a fear of the unknown are seen as threats to the tourism industry in general and Expo 2020 in particular.
Expo 2020 Dubai hopes to attract eleven million overseas visitors during the six months from October 2020. In 2019 there were almost one million visitors to Dubai from China. Extended travel restrictions on Chinese tourists coming to Dubai could therefore account for a 10% shortfall in visitor numbers to the Expo before consideration is given to numbers from other countries that may stay away due to a perceived danger of infection at a large global event.
There is still time for the situation to improve. It is estimated that if the virus is not contained and travel restrictions relaxed by the end of March then we may begin to see further serious impact on visitor numbers and investment in the region.
Such fears are adding to global uncertainty about the potential economic consequences of the continuing disruption being caused by Covid – 19.
The gold rate rose again today to an almost seven year high of 5848 AED per Troy Ounce as investors again sought ‘safe haven’ investments. There is room for further increases as this situation develops.
Browse our website or call us today on 055 889 4600.By iGold. Published on 19th February 2020.
Following recent political events in our region, we thought we would try to find a happier subject to discuss with our valued customers.
The Chinese Lunar Calendar has twelve characters that each represents one year in a twelve year cycle.
The Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Sheep, Monkey, Rooster, Dog and Pig each reputedly confer characteristics and attributes to people born in that character’s year.
It is said that the order followed by the different characters was established when the Jade Emperor invited all of the zodiac animals to a party and the order in which they arrived would be the order that they followed in their associated years. The Rat tricked the Ox into carrying him to the party and jumped down just ahead of the Ox as they arrived, claiming first place.
2020 is the first year in a new twelve year cycle and is therefore known as the Lunar Year of The Rat. Other recent Years of The Rat were 2008, 1996, 1984, 1972 and 1960.
The Chinese calendar is different to the western Gregorian calendar and the New Year begins with the Spring Festival commencing at the time of the year’s first new moon. The Chinese New Year celebrations last for fifteen days and end with a Lantern Festival to coincide with the full moon. Chinese New Year 2020 begins on 25th January 2020.
People born in The Year of The Rat are said to be optimists with an energetic demeanour and are well-liked by all due to sensitivity to the emotions of others. Lucky colours for ‘Rats’ include gold, green and blue.
Many traditions have developed over the centuries in relation to Chinese New Year, to the extent that there are certain things that should, or should not be done on each of the fifteen days of celebrations.
Spring Festival will see many Chinese people travelling home to be with family and friends in time for a traditional New Year’s Eve meal in honour of ancestors and family. Food served at this Reunion Dinner is often yellow or gold, colours associated with prosperity in Chinese culture.
Fireworks are a long standing tradition for use during the celebrations and are linked to an ancient myth of villagers setting off firecrackers to ward off a monster that was terrorising the population.
One of the quirkier traditions is to not demand repayment of a debt during the celebrations as this will supposedly bring bad luck to both parties.
Colours are of particular importance and the colour red is the most traditional for Lunar New Year with pink and orange also associated with health and good fortune.
A very popular tradition is for older people to give gifts of ‘lucky money’ in red envelopes to younger members of the family. Lucky Money is also given by married couples to younger family members, especially children and by younger family members to their parents.
Be very careful not to give the ‘wrong’ gift. Giving a clock as a gift is considered unwise as the term ‘gifting clocks’ sounds the same as ‘paying one’s last respects’ in Chinese.
Avoid selecting the wrong gift for Chinese New Year by browsing our wide range of gold bars and gold coins to select a perfect gift for a loved one this Chinese New Year.
The Team at iGold would like to wish all of our customers a Happy New Year.
‘Spot Prices’ are the live current global market prices for metals being bought and sold ‘for immediate payment and delivery’. Because these prices are being influenced by live transactions they will fluctuate constantly.
The price data on our website is a Spot price which updates every 5 seconds to ensure that you have the most up to date figures when deciding on the best time to buy or to sell precious metals.
‘Gold Fix Price’ is the industry name for the LBMA Gold Price. Historically, the London Bullion Market Association set market rates for Gold at 10.30 am each day that the huge London market was open and again at 3pm to coincide with the opening of US markets. In 2015 ICE Benchmark Administration (IBA) took over the supervision of this price setting process for gold and also took over the process for silver in 2017.
IBA’s electronic platform has been well received by markets as it has settled concerns over market manipulation which was becoming an issue before IBA’s involvement.
The new process is essentially an online auction whereby the system puts forward an initial price in line with current market conditions. The participants, sixteen global financial companies and banks, then test the price to see if their sell and buy requirements can be satisfied at the offered rate. At the end of each round the system checks to see if the difference between buying and selling (the imbalance) is within the imbalance threshold (normally 10,000 oz for gold and 500,000 oz for silver).
If the ‘imbalance’ is outside of the threshold at the end of a round, then the system proposes a new price and a new round starts.
If the imbalance is within the limit of the threshold then the process is successful and the price is set.
‘Silver Fix Price’ is the LBMA Silver Price, again overseen by IBA and set at 12.00 (London BST) on each day that the market operates. All participants are currently also participants in the gold price process.
‘Platinum Fix Price’ is the Platinum Price which is independently administered by the London Metal Exchange (LME). Prices are fixed twice during each market day, at 09.45 and 14.00 (London BST). BASF Metals Ltd, Goldman Sachs International, HSBC Bank USA NA, Johnson Matthey plc and Standard Bank plc are the participants in the price setting process.
‘Palladium Fix Price’ is the Palladium Price which is independently administered by the London Metal Exchange (LME). Prices are fixed twice during each market day, at 09.45 and 14.00 (London BST).BASF Metals Ltd, Goldman Sachs International, HSBC Bank USA NA, Johnson Matthey plc and Standard Bank plc are the participants in the price setting process.
Because Dubai is such a huge regional centre for Gold, the Government are keen to preserve trust in the Gold market and have established a mechanism to set a maximum rate that jewellers and dealers are allowed to charge on the gold content of retail sales. The rate has a small margin built into it to offset bullion delivery and customs charges. The purchase price of gold jewellery in Dubai is therefore a combination of the current Dubai retail gold rate plus a making charge. The price of the gold is set but the making charge can be negotiated.
So, in answer to the question, “Who Sets The Gold Price?” the answer is “The Global Market, with the exception of Dubai where the rate is set by the Global Market and the Government.”By iGold. Published on 27th November 2019.
Even if you do not live in Dubai you may have seen recent advertisements for a huge event which will take place here in one year’s time, EXPO 2020 DUBAI UAE. The honour of hosting this event was conferred by the General Assembly of The Bureau International des Expositions in November 2013.
We residents have been aware for some six years that this event was happening and as the impressive developments begin to take shape and global advertising is starting to kick in, we are getting more excited at the idea of hosting exhibitors from 190 countries at the World’s Greatest Show.
The first World expo took place in 1851 at Crystal Palace in London and was opened by Queen Victoria. EXPO 2020 Dubai UAE will be the largest event ever staged in the Arab world and will last for 173 days
With just 12 months to go we have now been introduced to the event’s cute mascots Latifa and Rashid and the robot ‘Guardians’ of the three huge EXPO Pavilions that will focus the themes of Opportunity, Mobility and Sustainability.
Opti is the guardian for the Opportunity Pavilion, Alif for the Mobility Pavilion and Terra for the Sustainability Pavilion. (Opti is a small yellow robot and has a heart of gold so he is obviously our favourite).
Construction of the massive infrastructure is well underway and you can even follow progress by watching the latest drone footage of the sites here.
Once completed the EXPO site will cover almost 4.5 square kilometres in Dubai South District near to Al Maktoum International Airport. Following the EXPO the sites will be re-purposed to reveal District 2020, a globally connected hub to enable the next generation of innovators, pioneers and original thinkers to Connect, Create and Innovate.
Some of the predicted numbers associated with the EXPO are truly mind-blowing. An estimated 25 million visitors are expected during the 173 day event and the estimate for associated job creation is 275,000! The anticipated economic impact on Dubai could see the UAE stake a claim as one of the top 10 international financial hubs in the near future.
Despite the huge scale of the event, at its heart it is a festival and will be a platform where people from all over the world can come together and connect with each other, learn and innovate and share ideas. It has also been designed as a place where you can come and have fun.
If you are based overseas and have ever considered a visit to our beautiful country then EXPO 2020 Dubai could be the perfect trigger for your visit. Be sure to book early as the expected numbers of visitors is awesome. Whilst you are here, make sure that you add the World Famous Gold Souk in Deira Dubai to your Must See List. Pop in for a visit, we would love to meet you and to recommend a precious souvenir of your visit.By iGold. Published on 1st November 2019.
Abu Dhabi, Ajman, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain are the other six Emirates and Abu Dhabi acts as the capital of UAE.
Increasingly known throughout the world for luxurious shopping malls, stunning high-rise architecture and active nightlife, Dubai is also known as the ‘City of Gold’, reputedly trading in excess of 1,200 tonnes of the precious metal annually.
From humble beginnings as a quiet Gulf port, Dubai was transformed during the late 1960’s and early 1970’s as civil war in Lebanon, the former centre of precious metal trading in the Middle East, drove traders and merchants to seek a safe haven from which to trade.
Dubai happily embraced the precious metals market. Government support and favourable Customs policies have combined with an advantageous geographic location to allow Dubai to flourish into one of the global centres for gold trading.
The city is now home to gold refineries, wholesalers and distributors, state of the art storage vaults, jewellery manufacturers and a substantial gold retail sector. The Dubai Gold and Commodities Exchange (DGCX) also provide increasing access to the commodities market for traders and investors wishing to trade gold.
Almost 200 nationalities are resident in Dubai and the vast range of jewellery offered in Arabic, Asian, European and Western styles reflects that cultural and ethnic mix, attracting wholesale and retail buyers from across the world.
The famous Dubai Gold Souk in Deira is home to over 300 jewellers and merchants and is one of the world’s largest retail gold markets, reportedly holding up to 10 tonnes of gold at any given time. Prices are always competitive.
Regularly updated current market rates are supplied by the Dubai Gold & Jewellery Group and displayed on Electronic Retail Jewellery Price Display Boards throughout the Souk. This initiative has emerged under the guidance of the Consumer Protection Department and ensures uniformity and transparency in retail jewellery pricing in Dubai. In addition, Dubai law makes it compulsory for gold jewellers to show the mandatory Gold Purity Hallmark of an item to buyers. (Non-resident buyers should ensure that they receive an invoice containing a full description of their purchase as this document will be required when leaving Dubai via the airport.)
Since the beginning of the new millennium, Dubai has solidified a position as a significant player in the global gold trade and in gold refining. This is quite an accomplishment considering the city’s humble beginnings and highlights the positive impact that concerted Government support policy can have on a sector. Dubai has now emerged as a regional gold distribution hub and has also developed links into the surrounding gold hubs of Istanbul and the Indian market.
In addition, the continued growth of exchange-based gold trading on the DGCX and the Emirate’s inherent love of gold will ensure that Dubai and the UAE remain firmly at the heart of the world gold trade
There is no doubt that ongoing Government support and the implementation of customer focussed initiatives have assisted in establishing Dubai as the ‘Jewellery Destination of the World’ and ‘City of Gold’.By iGold. Published on 31st October 2019.