Price of Gold in Dubai and India

May 29, 2006 9:20am CST
Sir/Madam, I would like to know why there is reportedly a huge difference in the price of Gold in Dubai and India, as a result of which many persons coming to India prefer to visit Dubai, purchase Gold at cheaper rate & within permissible quantities for import into India and trade it later at higher price. Can anybody explain this phenomenon? Govardhana Myneedu
1 response
• Philippines
7 Aug 06
Hi, Govardhana, I recently read that yhe world's major banks are openning branches in Saudi Arabia because the Middle East is afloat in cash. Many countries have their own market for gold. Here in the Philippines, for example, if you have gold bars from recovered Yamashita treasure, we have to sell gold at a substantial discount. In the Middle East, cash may be chasing gold, lowering the price. I do not need to tell you why gold sells for a premium in India with the adornment/investment of gold in your country. The answer to your question is that there is really a different market for gold in every country. Do you think I'm right? Keith Lauderbaugh