Sunday 09, April 2017 by William Mullally

Dubai Precious Metals Conference examines key themes shaping the global industry

The Dubai Precious Metals Conference (DPMC) has inaugerated its sixth annual edition.The two-day event is taking place between 9-10 April at the Address Hotel, Dubai Marina, attracting around over 400 delegates across the value chain including miners, investors, engineers, asset managers and professional services representatives.

The Dubai Precious Metals Conference (DPMC) has inaugerated its sixth annual edition.The two-day event is taking place between 9-10 April at the Address Hotel, Dubai Marina, attracting around over 400 delegates across the value chain including miners, investors, engineers, asset managers and professional services representatives.

Held under the theme of ‘Connecting Markets: the New Era of Global Trade’, the event explores the industry’s most pertinent topics with discussions focusing on how shifting geopolitics will impact the trade flows of precious metals. The panels and workshops taking place over the two days look at various topics including the importance of branding in the global precious metals industry, application of the global   standard in gold, implications of taxation for gold in global hubs, and the dawn of a new era in the global bullion industry.

The opening day saw the Dubai Gold and Commodities Exchange (DGCX), the largest and most diversified derivatives exchange in the Middle East, officially launch its DGCX Shanghai Gold Futures Contract (DSGC) with the Shanghai Gold Exchange (SGE). For the first time, global and regional investors will have the opportunity to trade and clear Yuan denominated gold contracts outside of China.

The introduction of DGCX Shanghai Gold Futures (DSGC) opens up a vital trading link, enabling global access to the world’s largest markets for physical gold. Connecting global investors to the largest bullion market with over 10 million institutional customers, 8.3 million individual customers and 55 certified gold vaults, the listing of DSGC will boost the precious metals trade between China and the UAE and further the economic development and cooperation between the two countries.

The first day also included a discussion about the future for precious metals, including master classes on technology innovation. Speaking about the application of Blockchain technology in the industry, Dan Clegg, Director of Business Development at The Royal Mint said, “While thinking about how The Royal Mint establishes itself for the future, we realised that Blockchain currencies and gold had a lot in common, and where they had differences they seemed to compensate for one another. This was the motivation behind RMG, an innovative new product launching in 2017 that will provide the investment performance of the London Gold Market with the price transparency, real-time price discovery and trade execution of a traded security. We believe these features, coupled with the guarantee of zero ongoing annual management fees and free storage, represents one of the best and cost-effective ways to invest in physical gold today."

The first day’s discussions highlighted the need for stakeholders across the value chain to consider how these issues impact them and their businesses, while ensuring they are operating within a solid financial and physical infrastructure that allows them to trade in confidence.

Conference delegates and speakers were also gearing up for one of the second day’s panels on Precious Metals Statistics & Price Outlook. Ross Norman, CEO of Sharps Pixley, said, “Prospects for inflation are rising all the time. Gold doesn’t work lock-step with the inflation rate when it goes from 0.5 per cent to 1 per cent, but when it gets to 3 per cent you get a step change. We are not there yet, but we are getting close to it, and that is when you see the multiplier effect.”

Philip Newman, Director at Metals Focus said the fragile US recovery and high debt levels would likely curb the Federal Reserve’s ability to significantly raise rates to stifle inflation for fear of triggering a recession.

Geopolitical uncertainty was also a hot topic. Jeff Rhodes, CEO of Dubai-based Zee Gold said, “I have seen nothing so far from the Trump presidency that says we are going to have any kind of stability any time soon.”

In India, there is some uncertainty due to its incoming Goods and Services Tax (GST).  But Dubai-based bullion trader Harish Pawani said the first quarter in India had been stronger than the same period a year ago. “Markedly better,” he added.

 

 

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