Tuesday, October 29, 2013

Dubai to Add Spot Gold Contract

This is not good for the dollar, long term. Countries are desperately seeking an alternative to the dollar. WSJ reports:

Dubai has been a gold-trading center in the Middle East for decades, but the market’s size has increased exponentially in recent years as the trade has expanded from traditional “souks” to the Dubai Gold & Commodity Exchange.

The exchange is planning to launch a spot gold contract next year, the first of its kind in the Middle East, which it hopes will help take the emirate from being a regional to a more international trading center for the precious metal.

About a quarter of all the physical gold traded around the world already passes through Dubai, the commercial hub of the United Arab Emirates, but DGCX, as the exchange is known, is looking to continue expanding this trade, which has grown from $6 billion in 2003 to $70 billion last year, according to data from the Dubai Multi Commodities Centre. This is part of a trend that is seeing the volume of gold passing through established gold-trading venues in the West—London, New York and Zurich—gradually shifting eastward, to Dubai, Singapore, Hong Kong and Shanghai.

1 comment:

  1. One can only hope that the Saudi's mean what they say over the Syria issue:

    ""But he(Bandar) suggested that the planned change in ties between the energy superpower and the United States would have wide-ranging consequences, including on arms purchases and oil sales.
    Saudi Arabia, the world's biggest oil exporter, ploughs much of its earnings back into U.S. assets. Most of the Saudi central bank's net foreign assets of $690 billion are thought to be denominated in dollars, much of them in U.S. Treasury bonds.
    'All options are on the table now, and for sure there will be some impact,' the Saudi source said."

    cause if they do the distant light of the oncoming dollar destrution train is becoming much larger much more quickly....