Investing in one of the world’s most precious metals can be quite a daunting and risky business. Time Out gets advice from your local expert, no matter whether you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager method of wealth as well as its fascination with glitz is amongst the city’s most intriguing traits. And as there is more for the emirate than supercars and cheap diamonds, the very fact remains that, as the buy gold online in Dubai, our city is the place to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without having tax on the precious metal, Dubai is an ideal place to buy it, but does that mean it’s a rewarding investment? Possibly not, as outlined by Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone has a crystal ball it’s impossible to predict if gold is a great investment,’ she says. ‘The price can be volatile and there is absolutely no guarantee that you is likely to make any cash.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that men and women build up their savings in the diversified portfolio for long-term benefit, than speculate on gold. It should be kept as no more than five percent of your own total investment assets,’ she adds.
Should you do decide to get gold, don’t be fooled into stocking on gold bars from one of Dubai’s gold dispensers (you’ll discover them in Atlantis, The Palm and also the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor will not be going to buy coming from a machine, thus i imagine it’s even more of a tourist souvenir, especially if you think about where most of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most popular way is probably by purchasing jewellery. This is largely sold by weight inside the UAE [far from the truth elsewhere], along with the workmanship can raise the price,’ she says. The better intricate the look, the greater you are likely to pay. When you go, ensure that the store is registered and this you’re paying the current day prices, as set by the Dubai Gold & Jewellery Group, https://www.youtube.com/watch?v=dgYwRBwnQT or around the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought on the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, in addition to online dealers. ‘You can begin with a coin (some kind of special UAE ones exist) costing under Dhs1,000, a very small bar of just an ounce, or move all the way up around massive bars weighing several kilos,’ she says. ‘Bullions ought to be saved in a bank vault, not in your house.’
Then when is the perfect time and energy to buy gold? ‘If only I was able to predict that,’ says Keren. ‘The best time happens when costs are low, so that you must monitor the market,’ she says. But investors should also be aware about indicators which play a role in the fluctuating cost of gold, including sentiment, governments buying to market gold reserves and when equity charges are volatile. Regarding selling, Keren says holidays tend to be a fun time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in many countries,’ she says. ‘India may be the world’s biggest gold importer and a lot is bought at Diwali and Akshaya Tritiya, along with during Eid within the Muslim world.’
India might be the world’s biggest importer, however, there is often little understanding why Dubai is among the best places to buy gold. ‘It’s to some extent on account of historical reasons and due to the sheer volume of trade here. Both Arabs and Indians have historically been keen on gold rather than putting cash in the lender,’ she says. ‘In many cultures this has been tradition for a lady to utilize the family unit wealth, particularly before the advent of safe banking. Some traditions die hard.’
For people eyeing gold investments, Keren reiterates her view that it’s imperative to proceed with caution. ‘When being bought for investment it needs to be considered an assets class like every other and also the factor to a balanced investment portfolio is diversification. Never put all your cash into one asset.
That’s incredibly risky if you have no power over market prices,’ she says. But as long as you’re in Dubai, there’s no harm in adding the odd piece for your jewellery collection.