Gold Demand: Down in Middle East in 2017

Sifting through the World Gold Council’s Gold Demand Trends report we told you about yesterday is revealing some interesting tidbits.  For example, gold demand was down last year in the Middle East overall, but up in Iran and Kuwait.  Demand in Iran was up 12 percent to 45.4 tonnes, the highest since 2013.

In fact, demand in Iran was almost as high as it was in much richer Saudi Arabia, which bought 45.7 tonnes.  However, demand in the UAE was down for the fourth year in a row, and hit a 20-year low.

The overall drop in demand seems strange. After all, just two years ago, everyone was sure that the new interpretation of Shariah law meant the Middle East would have investors buying gold hand over fist.  Apparently that’s not happening, or they’re buying paper gold such as ETFs.

One factor that could well be responsible: low oil prices through much of 2017 doubtless reduced Middle East cash flows, which would mean less pocket money to spend. You can read more about Middle Eastern gold demand in today’s featured article.

 Related: Gold Production is Setting Records. Here’s What You Need to Know. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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