Investing in one of the world’s most precious metals might be a daunting and risky business. Time Out gets advice coming from a local expert, whether or not you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager strategy to wealth as well as its fascination with glitz is among the city’s most intriguing traits. And as there is more to the emirate than supercars and cheap diamonds, the simple fact remains that, as the buy gold online Dubai, our city is where to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without tax in the precious metal, Dubai is a perfect location to purchase it, but does that mean it’s a worthwhile investment? Not necessarily, in accordance with Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone features a crystal ball it’s impossible to calculate if gold is a great investment,’ she says. ‘The price can be volatile and there is no guarantee which you can certainly make any money.’ Unlike many investments, including shares and property, you can’t take an income as a result adds Keren. ‘I’m more concerned that individuals build up their savings within a diversified portfolio with regard to their long term benefit, than speculate on gold. It should be kept as a maximum of five percent of your respective total investment assets,’ she adds.
Should you do decide to purchase gold, don’t be fooled into stocking high on gold bars in one of Dubai’s gold dispensers (you’ll find them in Atlantis, The Palm as well as the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not thinking about buying from your machine, and so i imagine it’s a greater portion of a tourist souvenir, especially if you think about where many of the machines are.’ Instead, Keren suggests you head straight for that jewellery shops. ‘The most popular way is probably by buying jewellery. This really is largely sold by weight from the UAE [untrue elsewhere], as well as the workmanship can raise the price,’ she says. The better intricate the design and style, the greater you will probably pay. When you are, ensure the store is registered and that you’re make payment on current day prices, as set from the Dubai Gold & Jewellery Group, Regal Assets Dubai gold or in the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be purchased with the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, and also online dealers. ‘You will start with a coin (some special UAE ones exist) costing lower than Dhs1,000, a tiny bar of just an ounce, or move all the way up as much as massive bars weighing several kilos,’ she says. ‘Bullions needs to be held in a bank vault, not in your house.’
When is the perfect time to buy gold? ‘If only I could possibly predict that,’ says Keren. ‘The best time takes place when costs are low, so that you must monitor the market,’ she says. But investors should also be mindful of indicators which bring about the fluctuating cost of gold, including sentiment, governments buying to sell gold reserves and once equity pricing is 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 certain countries,’ she says. ‘India is the world’s biggest gold importer as well as a lot is purchased at Diwali and Akshaya Tritiya, in addition to during Eid within the Muslim world.’
India might be the world’s biggest importer, but there is often little understanding as to the reasons Dubai is probably the the best places to buy gold. ‘It’s to some extent due to historical reasons and as a result of sheer level of trade here. Both Arabs and Indians have historically been keen on gold instead of putting money in the lender,’ she says. ‘In many cultures this has been tradition for a woman to use the family unit wealth, particularly just before the advent of safe banking. Some traditions die hard.’
For anyone eyeing gold investments, Keren reiterates her view that it’s important to proceed with caution. ‘When being bought for investment it must be considered an assets class like any other and also the factor to a well-balanced investment portfolio is diversification. Never place all your hard earned money into one asset.
That’s incredibly risky when you have no control of market prices,’ she says. But provided that you’re in Dubai, there’s no harm in adding the odd piece to the jewellery collection.