Investing in one of the world’s most precious metals can be quite 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 fascination with glitz is amongst the city’s most intriguing traits. And nevertheless there is more on the emirate than supercars and cheap diamonds, the simple fact remains that, as one of the buy gold online in Dubai, our city is where to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without having tax in the precious metal, Dubai is a great place to buy it, but does that mean it’s a rewarding investment? Not really, according to Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone includes a crystal ball it’s impossible to calculate if gold is a great investment,’ she says. ‘The price might be volatile and there is absolutely no guarantee which you is likely to 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 folks build-up their savings inside a diversified portfolio for his or her long-term benefit, than speculate on gold. It ought to be kept as a maximum of five percent of your total investment assets,’ she adds.
If you do decide to purchase gold, don’t be fooled into stocking up on gold bars from a single of Dubai’s gold dispensers (you’ll locate them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not thinking about buying from a machine, thus i imagine it’s much more of a tourist souvenir, especially when you consider where a lot of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most frequent approach is probably by purchasing jewellery. This is certainly largely sold by weight in the UAE [incorrect elsewhere], and the workmanship can improve the price,’ she says. The greater intricate the design and style, the greater you will probably pay. Whenever you go, be sure the store is registered and that you’re paying the current day prices, as set with the Dubai Gold & Jewellery Group, buy gold in Dubai Regal Assets or on the Emirates NBD website, www.emiratesnbd.com.
Gold bullions are offered 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 by using a coin (some special UAE ones exist) costing under Dhs1,000, a very small bar of just an ounce, or move all the way approximately massive bars weighing several kilos,’ she says. ‘Bullions should be held in a bank vault, not in your own home.’
When is the best time for you to buy gold? ‘If only I really could predict that,’ says Keren. ‘The best time is when prices are low, which means you must keep an eye on the marketplace,’ she says. But investors should also be mindful of indicators which contribute to the fluctuating price of gold, including sentiment, governments buying to market gold reserves so when equity prices are volatile. As for selling, Keren says holidays are frequently the best time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in some countries,’ she says. ‘India is definitely the world’s biggest gold importer as well as a lot is purchased at Diwali and Akshaya Tritiya, in addition to during Eid from the Muslim world.’
India might be the world’s biggest importer, there is however often little understanding as to the reasons Dubai is one of the best places to buy gold. ‘It’s in part as a result of historical reasons and due to the sheer level of trade here. Both Arabs and Indians have historically been keen on gold instead of putting funds in the lender,’ she says. ‘In many cultures it really has been tradition for a lady to utilize your family wealth, particularly before the coming of safe banking. Some traditions die hard.’
For all those eyeing gold investments, Keren reiterates her view that it’s important to proceed with caution. ‘When being bought for investment it should be considered an assets class like every other along with the factor to a well-balanced investment portfolio is diversification. Never put all your hard earned money into one asset.
That’s incredibly risky once 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 in your jewellery collection.