Investing in one of the world’s most precious metals can 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 strategy to wealth as well as its fascination with glitz is amongst the city’s most intriguing traits. And nevertheless there is more to the emirate than supercars and cheap diamonds, the 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. With no tax on the precious metal, Dubai is a great location to purchase it, but does that mean it’s a worthwhile investment? Not always, in accordance with Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone carries a crystal ball it’s impossible to calculate if gold is an excellent investment,’ she says. ‘The price could be volatile and there is not any guarantee which you is likely to make money.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that folks increase their savings inside a diversified portfolio for his or her long-term benefit, than speculate on gold. It should be kept as at most five percent of your own total investment assets,’ she adds.
If you do decide to invest in 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 and The Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor will not be going to buy from a machine, thus i imagine it’s even more 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 common method is probably by buying jewellery. This really is largely sold by weight within the UAE [far from the truth elsewhere], and the workmanship can raise the price,’ she says. The greater intricate the design, the more you will definitely pay. When you are, make sure the store is registered and therefore you’re make payment on current day prices, as set with the Dubai Gold & Jewellery Group, buy gold in Dubai Regal Assets or about the Emirates NBD website, www.emiratesnbd.com.
Gold bullions are offered on 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 below Dhs1,000, a very small bar of just an ounce, or move all the way as much as massive bars weighing several kilos,’ she says. ‘Bullions ought to be held in a bank vault, not in your own home.’
When is the ideal a chance to buy gold? ‘If only I could predict that,’ says Keren. ‘The best time takes place when pricing is low, so that you must monitor the marketplace,’ she says. But investors ought to be conscious of indicators which contribute to the fluctuating expense of gold, including sentiment, governments buying to market gold reserves and whenever equity costs are volatile. As for selling, Keren says holidays are usually a fun time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in many countries,’ she says. ‘India will be the world’s biggest gold importer as well as a lot is purchased at Diwali and Akshaya Tritiya, and also during Eid inside the Muslim world.’
India could possibly be the world’s biggest importer, but there is often little understanding as to why Dubai is one of the the best places to buy gold. ‘It’s partly on account of historical reasons and due to the sheer number of trade here. Both Arabs and Indians have historically been interested in gold as an option to putting funds in the financial institution,’ she says. ‘In many cultures it has been tradition for a lady to utilize the family unit wealth, particularly just before the development of safe banking. Some traditions die hard.’
For those eyeing gold as an investment, Keren reiterates her view that it’s fundamental to proceed with caution. ‘When being bought for investment it must be considered an assets class like 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 in case 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 in your jewellery collection.