Lower gold prices to boost jewellery sales

A drop in prices is adding glitter to gold and may spur buying at the Mideast Watch and Jewellery Show, which opened at Expo Centre Sharjah on Tuesday.

Shaikh Abdullah bin Salim Al Qasimi, Deputy Ruler of Sharjah, inaugurated the 34th edition of the five-day event, featuring 450 jewellers from all over the world. It also includes national pavilions from Hong Kong, China, India, Italy, Malaysia, Thailand and Singapore.

Nearly 20,000 square metres of exhibition space, displaying gold and diamond jewellery, diamonds, precious stones, loose pearls, pearl sets and watches, is expected to attract thousands of jewellery lovers, investors, traders and visitors until Saturday. Exhibitors, participants and other industry representatives are confident that current gold prices will spur buying and boost sales during the show.

"Gold rates in international markets are hovering near a sixmonth low of $1,600 an ounce and it will act as a catalyst for generating better consumer interest and higher sales. Rising tourist arrivals in country are also expected to boost jewellery sales this season," the exhibitors said.

The region's premier show is being held under the patronage of His Highness Dr Shaikh Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah.

Chairman of Sharjah Chamber of Commerce and Industry Ahmed Mohammed Al Midfa, Director-General of Expo Centre Sharjah Saif Mohammed Al Midfa, government officials, other dignitaries and industry representatives attended the opening ceremony.

Ahmed Mohammed Al Midfa said the show is fre- quented by the rich and influential in Arabia and has the patronage of royal families who vouch for the popularity and exclusivity of the event.

"MidEast Watch and Jewellery is one of the flagship shows of Expo Centre Sharjah, which is eagerly awaited by not just the lovers of precious metals and gems, but also regional traders who make it a point to visit the show to check out the latest trends and tastes in fashion jewellery," Al Midfa said in a statement to Khaleej Times.

Saif Mohammed Al Midfa said lower gold prices are expected to drive shopper traffic to one of the most anticipated jewellery fairs in the region.

"For genuine gold and diamond lovers, price has never been an issue, as we have seen during the past editions of the show. This is clearly visible in the last quarter of 2012 when gold sales saw a six per cent rise despite prices on the higher side. Now, they have an added reason to buy, and buy more, due to fall in prices," he said.

According to a World Gold Council report, there was a six per cent rise in jewellery sales in the UAE, from $385 million in the fourth quarter of 2011 to $408 million in fourth quarter of 2012. In terms of volume, jewellery sales in the fourth quarter of 2012 rose four per cent to 7.4 tonnes.

Rohit Dhamani, director wholesale and manufacturing at Dhamani, said higher gold prices failed to dent sales in past and said he is confident of having good sales orders during the exhibition. "We provide customised design as per requirement of customers, who are more aware and educated as compared to past," he said.

Vikram Ramesh, owner of Bahrain-based Ramesh Jewellers, termed gold investment a safe haven and said serious buyers are always in the market.