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$58-60 silver price by September says Dubai silver trader

Posted on 23 January 2012 with 7 comments from readers

Pop down to the Old Gold Souk in Deira, part of the modern city of Dubai and the hottest selling item is a 1kg bar of silver these days.

Karachi Jewellers told ArabianMoney yesterday they are selling 600 to 700 of these $1,300 bars each month with a 4.1 per cent profit margin.

More profitable than gold

‘It is far more profitable to trade silver than gold where the margin is much smaller,’ said director Ejaz Ilyas in a video to be broadcast on this website tomorrow.

‘We get a lot of passing tourists who buy 1kg silver bars. I was born in Dubai and spent most of my professional life in London but business is better here now. Even a modest shop in this souk does well.’

Not far from the Old Gold Souk is the ultra-modern terminus for cruise liners. Almost a million passengers visited Dubai last year and many find their way to the famous Dubai gold souks where gold and silver are sold untaxed. The only country in Europe not to charge tax on silver is Estonia. Cruise ships also call in there too.

In the Old Gold Souk the customers come from all over the world. Chinese and Russian buyers are prominent though Arab buyers from the Gulf Cooperation Council countries are probably still the biggest spenders. This is the month of the famous Dubai Shopping Festival so the gold souks are particularly busy.

Mr Ilyas said he thought the price of silver would be $58-60 by September, a spectacular gain on the price of $32 an ounce on the day of our visit. His reasoning is that the shift from paper money to real assets will benefit silver more than gold.

‘Metal prices are always volatile,’ he cautioned. ‘However, you can see where people are putting their money now.’

Eurozone money printing

There is also a school of thought in the souk that reckons the outcome of the eurozone crisis will be more money printing by the ECB whatever happens to Greece, and that this will propel dollar-denominated silver and gold to much higher prices.

Of course there is always the liklihood of a short-term set back for silver in a big market sell-off but that has not stopped ArabianMoney making silver our top tip for 2012 (click here).

The shiniest of metals is off to a good start with the price up 13 per cent since the New Year, comfortably outperforming any other investment class.

Posted on 23 January 2012 Categories: GCC Economics, Gold & Silver, Investment Gurus

7 Comments posted by readers:

Comment by Greg - 23 January 2012

At the bullion dealer I work for in Sydney, Australia the 1kg bar of Silver (Swiss PAMP) is also the biggest seller, this has been the case for about the last 18 months. On the tax issue, 9995+ Gold, 999+ Silver & 999+ Platinum bullion in bar or coin form are sales tax / VAT free in Australia. Premiums for a 1kg silver bar are approx. 5.5% above spot vs. 2.3% for a 1oz gold bar, which seems to reflect the situation in Dubai.

Comment by Stephanie - 24 January 2012

The only way you’re going to see $50-60 is to defeat CME, JP Morgan, et al. Otherwise, you might see that price in local currency and after exchanging for the dollar, but not here in the US.

What I would like to see you guys do, whether in Africa, Russia, China, India, is buy the living F* out of gold and silver and start forcing the US to settle trade in these metals. I am asking for a global monetary revolution, here. Help me bring the financial thievery complex back under control and take it down, so that we can all go back to doing real work and making money the honest way.

Comment by obewon - 25 January 2012

I believe there is much merit to Stephanie’s remarks (above), esp. her indirect suggestion that only private citizens can turn this corrupt & deceitful scam around. The western central banks, together with their cohorts, the big banks and the commodity exchanges (esp. LBMA and the COMEX, run by the CME) are effectively running a highly corrupt casino. Most informed investors now know this.

Let’s Bring Down the House!
On a global basis, if private citizens continue to buy as much gold and silver as they can afford (as an investment, obviously), this coordinated action will sharply reduce the amount of physical gold and silver available. The corrupt Cartels can keep their “paper gold” and their “paper silver” … eventually, differences will emerge between the physical and the paper (i.e. price discovery).

Worth Repeating:
“What I would like to see you guys do, whether in Africa, Russia, China, India, is buy the living F*** out of gold and silver and start forcing the US to settle trade in these metals. I am asking for a global monetary revolution, here. Help me bring the financial thievery complex back under control and take it down, so that we can all go back to doing real work and making money the honest way.”

Comment by Toufic - 01 February 2012

As a bullion dealer located in the US…Why am i not surprised that such shallow thinking has permeated my old stomping grounds (UAE) via articles like these that appeal to emotion?!?!

@ Stephanie: Put down the KoolAid with all this “I want to bring the system down” …go back to doing “real work and making money the honest way”…??

@ Obewon: Most informed investors know that the LBMA IS NOT an exchange! Jeez….Just proving that no matter the education people can get, ignorance is bred everyday!

@ Let’s Bring Down the House!: “differences will emerge between the physical and the paper?” UMM…..THEY ALREADY DO vis-a-vis premiums. Please read up on Contango, Backwardation and maybe..just maybe, the concept of arbitrage will start setting in.

Ahh…what can i say that you’re screen name doesn’t!

In any case, I’m not expecting the editor to have this comment posted…so I’ll just look back via a saved screen shot! :)


Comment by obewon - 02 February 2012

@Toufic, the Infallible:

I got a good laugh out of reading your caustic response! I’m sure the Ed. and other readers here enjoyed your obvious attempts to hide the truth. You a bullion dealer? Yeah, right!

At every turn, you managed to “find fault” with everything you’re read on this website; translation: you can’t handle the truth! Perhaps you should watch that old classic movie that made the phrase popular (“A Few Good Men”). In reality, your remarks reveal your true colors; you must either be an employee of the great satan (i.e. JPM, in the event you can’t make the connection here), or perhaps you work for the Crimex (I think you can figure out what organization that is).

Comments on Your Remarks:
1. The I’m-Gonna-Put-Her-Down-Ploy: “@ Stephanie: Put down the KoolAid . . .” obviously, you have to go on the attack here, because she exposed the truth about you and your kind. But then again, we’ve already established the fact that you can’t handle the truth.

2. The Superior-Wall St.-I-Know-It-All: “@ obewon: most informed investors . . .”
This remark was a classic “nit-pick.” You got me, my bad! But since you work on Wall St., everything you say is absolute truth; when you speak, you never mis-use an acronym (just ask your family members, if there are any who can tolerate your fault finding). Thank you for reminding me that the LBMA is composed of corrupt (my adjective here, not yours , of course!) members who manipulate the London Metals Exchange on a daily basis.

3. The You-Don’t-Know-Jack: “. . . they already do, vis-à-vis premiums. Please read up on Contango . . .” Another classic here, and so much financial jargon packed into one sentence!!! The Ed. of this site, and its regular readers are just a bunch of morons who stand in awe of your greatness; after all, you work in an atmosphere of supreme-knowledge-mass-manipulation-fraud-and-deceit.

Comment by Greg - 03 February 2012

Another week over and another 1,000kg of 1kg silver bars delivered out in addition to the several hundred we placed into storage. If this post is to be believed 1,000kg of silver is more than Rome had when it fell to the barbarian hoards.

No matter what anyone says or believes, silver is moving from weak hands to increasingly stronger hands. Most of my customers would not think of parting with their physical silver at prices less than $100/oz.

Comment by Audrey - 15 July 2012

July 15, 2012. Silver did reach 37.58 in February, but took it all back by May. Now in July, the price of silver is the same as early January, 2012

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