+ dubai: is it positive for gold? +

DUBAI: IS IT POSITIVE FOR GOLD?

One would think that any additional Institution will be Gold positive.

And Dubai is a special case as it is the centre of the Opec Oil hub nations.

These countries have large surpluses and need gold to balance their reserves. Also, many don't like buying from the US NYMEX as there is a suspicion that at some stage the US may intervene in a difficult financial situation.
Some nations don't like US bank accounts either for that reason.

Buying/selling at Dubai means that the metal as well as the currency remain outside the US in many cases.

Europeans would also like Dubai, I think. They do a huge trade with the Middle East and transactions may occur in Gold, if so desired.

There is little doubt that the total World Demand for Gold will rise, I believe as there is a better opportunity to transact Gold: People may buy gold in small lots as well so it can be used as gifts or payment.

Many don't like the US NYMEX because they think there are some unsavoury practices going on.

So, I think the DGCX will be a success story. There are some capable Board members with Dr David Rutledge as Chairman.

An important time slot will be filled also: At present it is 12.32 pm (noon) in Sydney, 5.32 am in Dubai and 8.32 pm in New York.

So, Dubai trading will start late afternoon, Sydney time. HotCopper Gold followers will like that.

Dubai trading will start at 10 am and finish at 11pm

At the moment, trading is minor after NY closes and there often is an opportunity to drag the gold price down at little cost.

That opportunity will be less once Dubai is operating for a while, I believe.

Gerry