Investing within the world’s most precious metals can be quite a daunting and risky business. Time Out gets advice from a local expert, regardless if you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager method of wealth as well as its fascination with glitz is probably the city’s most intriguing traits. And while there is more towards the emirate than supercars and cheap diamonds, the fact remains that, as the buy gold online Dubai, our city is the place to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without tax on the precious metal, Dubai is a great destination to purchase it, but does that mean it’s a rewarding investment? Possibly not, based on Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone includes a crystal ball it’s impossible to predict if gold is a good investment,’ she says. ‘The price may be volatile and there is not any guarantee that you is likely to make money.’ Unlike many investments, including shares and property, you can’t take money from using it adds Keren. ‘I’m more concerned that men and women build-up their savings inside a diversified portfolio for their long-term benefit, than speculate on gold. It must be kept as not more than 5 percent of your respective total investment assets,’ she adds.
If you decide to get gold, don’t be fooled into stocking through to gold bars in one of Dubai’s gold dispensers (you’ll see them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is just not thinking about buying from your machine, therefore i imagine it’s more of a tourist souvenir, especially when you consider where many of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most typical strategy is probably by buying jewellery. This can be largely sold by weight in the UAE [far from the truth elsewhere], and also the workmanship can improve the price,’ she says. The better intricate the design, the greater you will probably pay. When you are, make sure the store is registered which you’re make payment on current day prices, as set by the Dubai Gold & Jewellery Group, Regal Assets Dubai UAE or around the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought 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 using a coin (some kind of special UAE ones exist) costing under Dhs1,000, a little bar of just an ounce, or move all the way as much as massive bars weighing several kilos,’ she says. ‘Bullions ought to be saved in a bank vault, not in your own home.’
When is the greatest a chance to buy gold? ‘If only I really could predict that,’ says Keren. ‘The best time happens when pricing is low, therefore you must keep close track of the current market,’ she says. But investors should be aware of indicators which play a role in the fluctuating cost of gold, including sentiment, governments buying to market gold reserves and once equity charges are volatile. Regarding selling, Keren says holidays are often 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 may be the world’s biggest gold importer plus a lot is purchased at Diwali and Akshaya Tritiya, along with during Eid in the Muslim world.’
India may be the world’s biggest importer, there is however often little understanding why Dubai is probably the the best places to buy gold. ‘It’s in part because of historical reasons and because of the sheer volume of trade here. Both Arabs and Indians have historically been interested in gold as an alternative to putting money in the financial institution,’ she says. ‘In many cultures this has been tradition for a lady to put on your family wealth, particularly just before the development 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 ought to be considered an assets class as with any other and also the answer to a healthy investment portfolio is diversification. Never place all your hard earned money into one asset.
That’s incredibly risky if 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 in your jewellery collection.