Investing at one of the world’s most precious metals can be a daunting and risky business. Time Out gets advice coming from a local expert, no matter whether you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager method of wealth along with its fascination with glitz is probably the city’s most intriguing traits. And nevertheless there is more towards the emirate than supercars and cheap diamonds, the actual fact remains that, as the Buying 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 around the precious metal, Dubai is an ideal spot to buy it, but does that mean it’s a worthwhile investment? Not necessarily, according to Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone features a crystal ball it’s impossible to calculate if gold is an excellent investment,’ she says. ‘The price can be volatile and there is absolutely no guarantee that you can make money.’ Unlike many investments, including shares and property, you can’t take earnings from using it adds Keren. ‘I’m more concerned that men and women develop their savings in the diversified portfolio for his or her long term benefit, than speculate on gold. It should be kept as not more than five percent of your total investment assets,’ she adds.
If you decide to get gold, don’t be fooled into stocking through to gold bars from a of Dubai’s gold dispensers (you’ll locate them in Atlantis, The Palm as well as the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not planning on buying from your machine, and so i imagine it’s more of a tourist souvenir, especially when considering where many of the machines are.’ Instead, Keren suggests you head straight for that jewellery shops. ‘The most typical way is probably by buying jewellery. This can be largely sold by weight within the UAE [incorrect elsewhere], as well as the workmanship can increase the price,’ she says. The better intricate the design and style, the greater number of 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, Regal Assets Dubai or in the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought at the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, along with online dealers. ‘You may start having a coin (some kind of special UAE ones exist) costing under Dhs1,000, a little bar of just an ounce, or move completely as much as massive bars weighing several kilos,’ she says. ‘Bullions should be stored in a bank vault, not in your house.’
When is the ideal time for you to buy gold? ‘If only I really could predict that,’ says Keren. ‘The best time takes place when prices are low, which means you must keep watch over the current market,’ she says. But investors should also be aware about indicators which bring about the fluctuating cost of gold, including sentiment, governments buying to offer gold reserves and when equity pricing is volatile. As for selling, Keren says holidays are usually a good 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 plus 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, there is however often little understanding that explains why Dubai is one of the best places to buy gold. ‘It’s partly on account of historical reasons and because of the sheer amount of trade here. Both Arabs and Indians have historically been keen on gold as an alternative to putting cash in the lender,’ she says. ‘In many cultures it has been tradition for a lady to utilize the family wealth, particularly prior to the introduction of safe banking. Some traditions die hard.’
For people eyeing gold as an investment, Keren reiterates her view that it’s vital to proceed with caution. ‘When being bought for investment it ought to be considered an assets class like any other as well as 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 over market prices,’ she says. But provided that you’re in Dubai, there’s no harm in adding the odd piece to the jewellery collection.