Investing at one of the world’s most precious metals can be a daunting and risky business. Time Out gets advice from the local expert, whether or not you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager procedure for wealth and its particular fascination with glitz is probably the city’s most intriguing traits. And nevertheless there is more to 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 tax around the precious metal, Dubai is an ideal place to purchase it, but does that mean it’s a worthwhile investment? Not really, in accordance with Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone carries a crystal ball it’s impossible to predict if gold is an excellent investment,’ she says. ‘The price can be volatile and there is not any guarantee that you simply is likely to make any money.’ Unlike many investments, including shares and property, you can’t take an income from this adds Keren. ‘I’m more concerned that folks increase their savings within a diversified portfolio with regard to their long term benefit, than speculate on gold. It needs to be kept as not more than five percent of the total investment assets,’ she adds.
If you decide to buy 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 and also the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not really planning on buying from the machine, so I imagine it’s much more of a tourist souvenir, especially when considering where many of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most typical method is probably by buying jewellery. This is largely sold by weight inside the UAE [incorrect elsewhere], as well as the workmanship can increase the price,’ she says. The more intricate the design, the better you will definitely pay. Whenever you go, make sure the store is registered and this you’re making payment on the current day prices, as set through the Dubai Gold & Jewellery Group, Regal Assets Dubai gold or around 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, as well as online dealers. ‘You will start having a coin (some kind of special UAE ones exist) costing lower than Dhs1,000, a small bar of just an ounce, or move all the way up up to massive bars weighing several kilos,’ she says. ‘Bullions needs to be held in a bank vault, not in your own home.’
So when is the greatest a chance to buy gold? ‘If only I really could predict that,’ says Keren. ‘The best time is when costs are low, which means you must keep an eye on the current market,’ she says. But investors should be aware about indicators which play a role in the fluctuating value of gold, including sentiment, governments buying to sell gold reserves and when equity costs are volatile. In terms of selling, Keren says holidays are frequently a fun 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 purchased at Diwali and Akshaya Tritiya, along with during Eid within the Muslim world.’
India could possibly be the world’s biggest importer, however, there is often little understanding why Dubai is among the the best places to buy gold. ‘It’s partly because of historical reasons and because of the sheer number of trade here. Both Arabs and Indians have historically been interested in gold instead of putting cash in the financial institution,’ she says. ‘In many cultures it really has been tradition for a lady to wear the household wealth, particularly prior to the development of safe banking. Some traditions die hard.’
For anyone 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 any other and the step to a healthy investment portfolio is diversification. Never place all your cash into one asset.
That’s incredibly risky once you have no control of market prices,’ she says. But as long as you’re in Dubai, there’s no harm in adding the odd piece for your jewellery collection.