Investing in one of the world’s most precious metals might be a daunting and risky business. Time Out gets advice from a local expert, whether or not you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager strategy to wealth along with its fascination with glitz is among the city’s most intriguing traits. And as there is more towards the emirate than supercars and cheap diamonds, the actual 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. Without tax in the precious metal, Dubai is an ideal place 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 can be volatile and there is absolutely no guarantee that you is likely to make any money.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that individuals increase their savings in the diversified portfolio for long-term benefit, than speculate on gold. It needs to be kept as at most 5 percent of your total investment assets,’ she adds.
If you do decide to purchase gold, don’t be fooled into stocking up on gold bars from a of Dubai’s gold dispensers (you’ll find them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not going to buy coming from a machine, therefore i imagine it’s even more of a tourist souvenir, especially when you consider where most of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most frequent way is probably by purchasing jewellery. This can be largely sold by weight from the UAE [incorrect elsewhere], and also the workmanship can improve the price,’ she says. The more intricate the style, the greater number of you will probably pay. Whenever you go, ensure 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 UAE or about 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 may start using a coin (some kind of special UAE ones exist) costing lower than Dhs1,000, a tiny bar of just an ounce, or move all the way as much as massive bars weighing several kilos,’ she says. ‘Bullions ought to be kept in a bank vault, not within your house.’
And once is the ideal time to buy gold? ‘If only I was able to predict that,’ says Keren. ‘The best time is when charges are low, so you must keep an eye on the current market,’ she says. But investors ought to 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 usually 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 will be the world’s biggest gold importer and a lot is bought at Diwali and Akshaya Tritiya, along with during Eid from the Muslim world.’
India may be the world’s biggest importer, there is however often little understanding as to why Dubai is probably the the best places to buy gold. ‘It’s partly as a result of historical reasons and because of the sheer number of trade here. Both Arabs and Indians have historically been keen on gold instead of putting cash in the financial institution,’ she says. ‘In many cultures it really has been tradition for a woman to wear the family wealth, particularly ahead of the development of safe banking. Some traditions die hard.’
For all those eyeing gold investing, Keren reiterates her view that it’s vital to proceed with caution. ‘When being bought for investment it should be considered an assets class like all other as well as the step to a well-balanced investment portfolio is diversification. Never put all your hard earned dollars into one asset.
That’s incredibly risky if you have no control of market prices,’ she says. But given that you’re in Dubai, there’s no harm in adding the odd piece in your jewellery collection.