Gold sales record new highs during DSS

The ongoing Dubai Summer Surprises (DSS) has spurred the demand, by increasing footfalls to over 300 jewellery outlets participating in the DSS fiesta.

Dubai, the city of gold, has always enjoyed a reputation as the best place to buy gold jewellery. With high volumes, low mark ups and no sales tax, it remains one of the cheapest places to purchase gold. And summer tourists have been making a beeline to buy it, translating into healthy sales figures for the trade. As KP Baiju, General Manager, Dubai Gold & Jewellery Group (DGJG) says, "Participating outlets have recorded sales of Dh 31 million since the start of DSS. We hope to grow the industry by 15 per cent this summer."

Added KP Baiju, "Dubai Summer Surprises has helped in creating retail demand in the summer season, which was otherwise considered to be a very slow one for retail. With the DSS focus on retail this year, new jewellery designs have been launched in summer for many categories -- especially for children. There is an increased interest among retailers and brands to tap into the emerging summertime opportunity."

Speaking about fiscal projections for the rest of the year, Moaz Barakat, Managing Director of the World Gold Council in the Middle East, Turkey & Pakistan said, "We expect the remaining period of 2006 to be good and healthy despite the situation of gold prices around the globe. The World Gold Council has also recently announced that retail gold sales have increased by 10 per cent in Q1 of 2006 compared to 2005 where sales reached Dh 2.1 billion proving that the high volatility of gold prices in this period has not weakened consumer spirit in the Dubai gold market. The healthy gold market would not have remained this way without the continuous efforts of the World Gold Council, the Dubai Gold and Jewellery Group and the enthusiasm and vision of the trade. We expect Dubai Summer Surprises to boost gold sales for the remaining of 2006. "

Globally, gold prices traditionally rise between the end of July and the end of September, due, in part, to purchases of gold by jewellery-makers who are gearing up for the busy festival seasons -- the strongest periods of gold jewellery purchases in the calendar. Barring Dubai, in the rest of the world, gold prices have registered a decline in the past few weeks as the market eased back from quarter-century highs registered in April and May.

In Dubai consumer sales have increased thanks to the efforts of Dubai jewellers. The mega collective promotions organised by the DJGJ, have been extremely effective in reaching out to customers and energising trade in the precious metal. Both tourists and residents have taken advantage of these promotions to enthusiastically buy gold at participating outlets. The outlets gain customer loyalty creating long term relationships in return.

The Dubai Gold and Jewellery Group, a key sponsor of Dubai Summer Surprises (DSS), is giving away prizes worth millions of dirhams during a 10-week-long offer this year. Speaking about the promotions that have stimulated the gold business, Baiju said, "This year we have created unprecedented number of prizes offering many winnings, In the first weekly draw itself we had seven nationalities winning several prizes. Each winner is an ambassador for Dubai and the winning outlet in particular. Who would not like to win an apartment, BMW cars, kilos of gold, solitaire diamonds, a full year's paid shopping and many other of the 30,100 prizes? Creating several opportunities to win through our participating outlets is our strategy this for summer."

The 10-week long DSS, which opened with the Ice Surprises week on June 21, continues with the weekly themes of Art Surprises, International Food Surprises, Adventure Surprises, Cartoon Surprises, Nature Surprises, Knowledge Surprises, Flower Surprises, Heritage Surprises, and concludes with Back-2-School Surprises on September 1.