With regard to the article Gulf Nations Will Break Dollar Peg With New Currency in 2010, that has been canned.
Gulf states were in the process of collaborating on a new currency to be shared among the states and as stated not linked to the US dollar. However as of May this year that has been put on hold and possibly canned until further notice. The Arabs are rethinking many things, and yes peak oil is a prime concern
As for the gold sales in middle east, an interesting article here http://www.bi-me.com/main.php?id=38794&t=1&c=3&cg=2&mset=1021
which basically says...UAE. Gold jewellery sales in Dubai are down around 30% in June compared to the same month last year, as high prices of the metal and the economic downturn deter tourists from visiting the emirate, jewellery retailers told Reuters.
Almost 8 million tourists visited the emirate, branded as the City of Gold, last year, many of them lured by the tax-free jewellery. But retailers told Reuters they have seen far fewer tourists this year due to the economic crisis
"In June sales were down about 30 percent from last year. Because of the hot weather and economic conditions less tourists are here to shop," said Sanjay Jity, a shop keeper from Al Khaledyah Jewellery in the old souk, or market.
Hotel revenues in Dubai fell 40% this May and June compared with the same months last year, according to hospitality agency STR Global.
The Dubai Department of Tourism and Commerce Marketing said 7.7 million tourists came to Dubai in the year to December, but had no updated figures for this year.
The higher price of gold has also deterred buyers, another salesman at the souk said. The retail price of 22 karat gold was around AED101 per gramme, 20% higher than last year, he said.
"Many people now can't afford these prices," the salesman said.
The UAE saw demand volume for jewellery fall 33% during the first quarter of this year, while investment volume fell 15%, the World Gold Council (WGC) said in its quarterly report in May.
"The volatile prices of gold is another factor that is scaring buyers, but I think the price will stabilise over the coming few months which should push sales up again," said Pradeep Unni, a trader from Richcomm Global Services.
Retailers in Dubai's gold souk believe the slow sales will continue until the end of September and might pick up by the end of the year as the economy recovers.
"We are hoping that the economic conditions will improve by October to November, otherwise many businesses will be in trouble," a retailer said.
Nev from what I gather here and other info from around the region, many are assuming that the world gold council will stabilise gold around the same prices, hence offering greater stability to markets, tourism etc.
I would hope you and others are right in gold prices to escalate, however, I have seen little evidence of that sentiment in the UAE especially.
Mind you..I also have a considerable holding in IGR and IGROA and will be getting more in due time as I believe in this story and have been in for a few years now. My biggest concern now is IGROA not realising it's full potential by November. Still a few months away, so perhaps the proverbial rabbit can be pulled from the hat by CC. I sure hope so.
Look forward to reading the IGR posts these days as I think many decent and informed posters represent a good company.
mm
IGR Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
