Dubai Gold Buying Spree Leads To Bullion Shortage Gulf News

Dubai Gold Buying Spree Leads To Bullion Shortage  Gulf News

Premiums have touched $5 an ounce in the wholesale trade and even bullion banks have raised theirs to $2-$3 an ounce for deliveries.

“Since the afternoon of April 12 gold retail sales shot up by nearly three times over the next seven days and this represents the best phase for Dubai’s gold trade in the last 12 years,” said Cyriac Varghese, general manager at Sky Jewellery. “But it has also led to pressure for retailers on the inventory side and there is a bullion shortage – our instructions are to snap up any supply so that stocks are constantly replenished.

“The last thing any retailer wants to see is get caught with insufficient stock at his shops – if it means paying a steep premium then it will be paid.”