Investing in one of the world’s most precious metals might be 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 and its particular fascination with glitz is amongst the city’s most intriguing traits. And while there is more for 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 any tax around the precious metal, Dubai is a perfect spot to buy it, but does that mean it’s a rewarding investment? Not necessarily, based on Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone has a crystal ball it’s impossible to predict if gold is a superb investment,’ she says. ‘The price could be volatile and there is not any guarantee that you just can certainly make money.’ Unlike many investments, including shares and property, you can’t take an income as a result adds Keren. ‘I’m more concerned that folks develop their savings inside a diversified portfolio for long term benefit, than speculate on gold. It must be kept as a maximum of five percent of your total investment assets,’ she adds.
If you decide to get gold, don’t be fooled into stocking on gold bars from a 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 will not be planning on buying from a machine, therefore i imagine it’s a greater portion of a tourist souvenir, especially if you think about where a lot of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most frequent way is probably by buying jewellery. This really is largely sold by weight from the UAE [not the case elsewhere], as well as the workmanship can boost the price,’ she says. The better intricate the look, the greater number of you are likely to pay. When you are, ensure that the store is registered and this you’re paying the current day prices, as set with the Dubai Gold & Jewellery Group, Regal Assets Dubai or in the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be purchased in the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, along with online dealers. ‘You can start with a coin (some special UAE ones exist) costing less than Dhs1,000, a little bar of just an ounce, or move completely around massive bars weighing several kilos,’ she says. ‘Bullions should be kept in a bank vault, not within your house.’
When is the ideal time and energy to buy gold? ‘If only I could possibly predict that,’ says Keren. ‘The best time is when charges are low, so that you must monitor the marketplace,’ she says. But investors should also be conscious of indicators which give rise to the fluctuating value of gold, including sentiment, governments buying to sell gold reserves and once equity charges are volatile. Concerning selling, Keren says holidays are often the best time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in certain countries,’ she says. ‘India may be the world’s biggest gold importer plus a lot is bought at Diwali and Akshaya Tritiya, and also during Eid from the Muslim world.’
India might be the world’s biggest importer, however, there is often little understanding that explains why Dubai is amongst the best places to buy gold. ‘It’s in part because of historical reasons and due to sheer number of trade here. Both Arabs and Indians have historically been keen on gold as an option to putting funds in the lender,’ she says. ‘In many cultures it really has been tradition for a woman to utilize the family unit wealth, particularly just before the development of safe banking. Some traditions die hard.’
For people eyeing gold as an investment, Keren reiterates her view that it’s important to proceed with caution. ‘When being bought for investment it ought to be considered an assets class as with any other and also the step to a balanced investment portfolio is diversification. Never put all your cash into one asset.
That’s incredibly risky once 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 for your jewellery collection.