by Peter Cooper, ArabianMoney.net, via Gold Seek:
Gold retailers in Dubai are expecting to see their sales surge by 50 per cent this week as the five-day Diwali festival of lights continues this week. Gulf News reports that retailers are posting 25 to 100 per cent increases in business so far. Thank a 25 per cent fall in gold prices this year and a 10-15 per cent tax on gold by the Indian Government.
Savvy Indian investors have always responded to falls in the gold price by buying more gold, not selling it. Diwali is one of the most important religious festivals in the Indian calender with the giving of gold at its heart.
City of Gold
Gold jewellery is always a popular buy in Dubai because only a small margin is paid over the cost of the precious metal. It’s not like the US or UK where profit margins and design can put retail prices at double or triple the price of gold.
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