Gold import increased with more than 15 percentage in the first quarter of 2009 compared with the same period in 2008. This data was brought to life by Dubai World statistical office.
Why they do this? What kind of factors are hiding in the shadow, in the background, covered with veil? The crisis, ooh yes. Let's see it in more details, in order to reveal the substantial points and get the process well in our mind. I would like to begin the background of the crisis, solely, briefly:
Beginnings:
The beginnings of what is now referred to as the 2007-08 credit crunch appeared in early 2007 to be localized problems among lower-quality U.S. mortgage lenders. An increase in subprime mortgage defaults in February 2007 had caused some excitement in the markets, but this had settled by March. However, in April New Century Financial, a subprime specialist, had filed for Chapter 11 bankruptcy and laid off half its employees; and in early May 2007, the Swissowned investment bank UBS had closed the Dillon Reed hedge fund after incurring $125 million in subprime mortgage–related losses. 2 This also might have seemed an isolated incident, but that month Moody’s announced it was reviewing the ratings of 62 asset groups (known as tranches) based on 21 U.S. subprime mortgage securitizations. This pattern of downgrades and losses was to repeat itself many times over the next few months. In June 2007 Bear Stearns supported two failing hedge funds, and in June and July 2007 three ratings agencies—Fitch Ratings,
Standard & Poor’s, and Moody’s—all downgraded subprimerelated mortgage products from their “safe” AAA status.
Shortly thereafter Countrywide, a U.S. mortgage bank, experienced large losses, and in August two European banks,
IKB (German) and BNP Paribas (French), closed hedge funds in troubled circumstances. These events were to develop into the full-scale credit crunch of 2007-08.
What has led to it?
First, there was a period of exceptional stability with very low long-term interest rates supported by the global savings glut flowing from emerging industrialized economies. Second, financial innovation had developed well-understood financial products such as MBSs and introduced greater complexity, higher leverage, and weaker underlying assets based on subprime mortgages. Third, no one anticipated that house prices would fall nationwide in the United States—these conditions were not built into the models used to assess risk—but house prices did fall and when they did so defaults increased in the subprime sector, which proved a trigger for the crisis as investors reappraised the risks associated with the high-yielding residential MBSs and CDOs composed of these assets. Any number of other high-yield asset markets might have provided the trigger for the 2007-08 credit crunch, including hedge funds, private equity, and emerging market equities; it just happened to be the subprime crisis that occurred first. The failure of a number of banks then spurred a reaction in the markets for short-term paper and banks of all kinds withdrew from lending in money markets. The authorities decided to act to provide liquidity to the markets and funding liquidity for failing banks such as Northern Rock, Bear Stearns, and governmentsponsored enterprises. Central banks handled the crisis well from the perspective of providing liquidity to the markets, but spreads remain larger than before the crunch. They did less well in providing funding liquidity for failing institutions and the consequences of these actions for the taxpayer that are unquantifiable at this stage. Finally, regulation and supervision needs to be enhanced in the face of rapid financial innovation—the scope of regulation will need to increase to ensure systemic risks are minimized in the future. Due to the crisis some severe problems had been arised.
Indebtedness in many families, layoffs, bankruptcies and so on...The point is the unsteady circumstence which spread and became dominant factor in people's life.
Unsteadiness - has dubai the best therapy with waterpipes? Unsteadiness, incalculable mornings
As a result of uncertainty people made efforts to reduce this doubtfulness, by escaping theirsavings from legal tenders and stocks to gold. Gold is the king during storm and stress. In hungary there is a famous and hilarious tv spot from György Klapka, in which he presents his pawnshop and gold, silver jewelry with a crippled paper-table. Good to know how can we diminish our high-marketing costs, his street is the hungarian-gold souk street. Back to the point, gold. Dubai.
Dubai has the biggest gold processor industry in the Middle East. On the other hand, Dubai is one of the major shopping destinations of world. People from all over the world come for Dubai shopping Tour. Dubai is also regarded as the city of gold, as it features wide range of jewelry stores too (after Hungary :).
There are approximately 700 jewelry stores including 300 Gold Souk. Prices of jewelry in Dubai are quite low. If you are looking for gold then Dubai is the ideal destination. Low import duties and no tax makes Dubai one of the cheapest place in the world to buy gold. Dubai Gold Souks are the major highlights of Dubai tourism, as you would be provided with wide range of necklaces, earrings and headpieces.
Authenticity of Gold in Dubai Gold Souks.
Local laws in Dubai are quite strict, as Dubai municipality regularly performs quality checks. Thus, you need not bother about the authenticity of gold. Due to great competition,
Dubai Gold Traders would offer you detailed invoice, certificate of authenticity, along with gold purity hallmark. Some popular Dubai Gold Souks are available in Deira.
Gold and jewelry in Dubai Gold Souks
Gold Souk in Deira are quite attractive and makes the visitor buy gold and jewelry. Gold and jewelry are available in varied range and designs. If you are looking for Arabian and Indian wedding jewelry then these Gold Souqs are ideal.
You would be provided with mind boggling necklaces, bangles and headdresses. One of the largest Dubai Gold Souk is at Deira. People from all over the world come to these Gold Souks of Dubai and buy some magnificent piece of jewelry.It is the famous gold market of Dubai.
And folks, if You have amazing girlfriends, you don't even think about this jewelry-lavish market where You can go, no no, i said, if you have a girlfriend:
you must go to... ;-)
p.s.: this is how an accommodating bloke do things ;)
