Investing in one of the world’s most precious metals can 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 procedure for wealth and its particular fascination with glitz is among the city’s most intriguing traits. And nevertheless there is more for the emirate than supercars and cheap diamonds, the simple fact remains that, as one of 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 any tax about the precious metal, Dubai is an ideal spot to buy it, but does that mean it’s a worthwhile investment? Possibly not, as outlined by Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone includes a crystal ball it’s impossible to predict if gold is a superb investment,’ she says. ‘The price may be volatile and there is no guarantee which you can make any money.’ Unlike many investments, including shares and property, you can’t take an income from using it adds Keren. ‘I’m more concerned that individuals develop their savings in a diversified portfolio with regard to their long term benefit, than speculate on gold. It must be kept as at most five percent of your respective total investment assets,’ she adds.
Should you do decide to buy gold, don’t be fooled into stocking through to gold bars in one of Dubai’s gold dispensers (you’ll discover them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not really thinking about buying from your machine, and so i imagine it’s more of a tourist souvenir, especially when considering where the majority of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most frequent method is probably by buying jewellery. This is largely sold by weight within the UAE [incorrect elsewhere], and the workmanship can boost the price,’ she says. The greater number of intricate the style, the greater you will definitely pay. When you go, make sure the store is registered and this you’re make payment on current day prices, as set by the Dubai Gold & Jewellery Group, buy gold in Dubai Regal Assets or around the Emirates NBD website, www.emiratesnbd.com.
Gold bullions are sold at the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, along with online dealers. ‘You can start by using a coin (some special UAE ones exist) costing lower than Dhs1,000, a small bar of just an ounce, or move all the way up approximately massive bars weighing several kilos,’ she says. ‘Bullions ought to be kept in a bank vault, not in your home.’
And once is the best time for you to buy gold? ‘If only I could possibly predict that,’ says Keren. ‘The best time happens when pricing is low, so you must keep watch over the current market,’ she says. But investors also need to be aware of indicators which bring about the fluctuating value of gold, including sentiment, governments buying to market gold reserves and when equity costs are volatile. In terms of selling, Keren says holidays tend to be the best time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in a few countries,’ she says. ‘India is the world’s biggest gold importer as well as a lot is bought at Diwali and Akshaya Tritiya, as well as during Eid within the Muslim world.’
India might be the world’s biggest importer, but there is however often little understanding that explains why Dubai is one of the best places to buy gold. ‘It’s partly due to historical reasons and due to the sheer volume of trade here. Both Arabs and Indians have historically been keen on gold as an option to putting money in the bank,’ she says. ‘In many cultures it really has been tradition for a lady to put on your family wealth, particularly prior to the advent of safe banking. Some traditions die hard.’
For those eyeing gold investments, Keren reiterates her view that it’s vital to proceed with caution. ‘When being bought for investment it needs to be considered an assets class like all other and the key to a balanced investment portfolio is diversification. Never put all your hard earned dollars into one asset.
That’s incredibly risky once you have no control 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.