Sharjah jewellery fair offers chance to be part of gold rush

"People are concerned about safeguarding the value of their assets and gold is a natural choice for many,"

said Mr Saif Mohammed Al Midfa, Director-General of Expo Centre Sharjah, ahead of one of the region's most popular jewellery fair - the MidEast Watch & Jewellery Show.

According to the World Gold Council, investment demand for gold witnessed a strong growth in the UAE last year. Overall, investment demand grew 27% in the country last year, while jewellery accounted for 90% of total gold demand.

During the second half of 2008, increase in gold demand in the UAE reached 22% in tonnage terms; equal to 56% surge in value terms.

"This growth in demand is bound to reflect positively on the show, which is to be held at Expo Centre Sharjah from April 7 to 11," he said.

Investors across the world continued to buy large quantities of gold last year, totaling 43.3 million ounces. This was slightly lower than the 44 million ounces bought in 2007, but points to a new trend even during times of economic hardships and financial worries. If this trend continues, investor buying is likely to reach a record 52.3 million ounces this year, according to figures released by a leading commodities research group.

"During these difficult times, it is quite natural that many people are believing gold will hold or increase its value, suggesting more people will be investing in gold than looking for other investment opportunities," he said.

During volatile and uncertain times, there is typically a "flight to quality", as investors seek to protect their capital by moving it into assets considered to be safer stores of value. Gold is among a handful of financial assets that do not rely on an issuer's promise to pay, offering refuge from default risk. It provides insurance against extreme movements that often occur in the value of traditional asset classes in unsettled times, according to the World Gold Council.

It is estimated that total gold supply rose to 114.8 million ounces last year, up 3.4% from 111.1 million ounces in 2007. Mine production stood at 55.3 million ounces.

Gold prices have gained for eight straight years as a declining dollar and instability in financial markets boosted the metal's appeal as an alternative asset. The price touched a record $1,033.90 on March 17, 2008.

"We are likely to see strong investment demand this year too. While hardcore investors go for products like coins and bars, exchange-traded gold, gold accounts, gold certificates, gold funds and structured products, those who value the yellow metal and at the same time appreciate its charm and beauty, opt for jewellery," said Mr Midfa.

"In its 26th edition, MidEast Watch and Jewellery show is the longest running consumer fair in the region. It will offer everybody an opportunity to be part of this gold rush," he said.

More than 450 master jewellers and craftsmen will display loose pearls, diamonds, precious stones, gold and diamond jewellery, diamond and pearl sets, crystals, watches, jewellery displays, and different kinds of tools used in the trade at 16,000 square metres of exhibition space during the five-day show.

The general visiting hours of show will be from 11am to 10pm on April 7, and from 4pm to 10pm on April 8, 9, 10 and 11. Entry is free.

Ladies will have exclusive timings on April 8 and 11, from 11am to 2pm.

The exhibition will be organised by Expo Centre Sharjah with the support of the World Gold Council and the Sharjah Chamber of Commerce and Industry.