Investing within the world’s most precious metals can be quite a daunting and risky business. Time Out gets advice from your local expert, regardless if you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager method of wealth and its fascination with glitz is probably the city’s most intriguing traits. And as there is more for the emirate than supercars and cheap diamonds, the actual fact remains that, as 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 having tax on the precious metal, Dubai is a perfect place to buy it, but does that mean it’s a rewarding investment? Not really, in accordance with Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone has a crystal ball it’s impossible to calculate if gold is an excellent investment,’ she says. ‘The price might be volatile and there is absolutely no guarantee that you just can certainly make money.’ Unlike many investments, including shares and property, you can’t take money as a result adds Keren. ‘I’m more concerned that folks build-up their savings inside a diversified portfolio for long term benefit, than speculate on gold. It must be kept as not more than five percent of the total investment assets,’ she adds.
If you do decide to get gold, don’t be fooled into stocking up on gold bars from a of Dubai’s gold dispensers (you’ll see them in Atlantis, The Palm as well as 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 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 [not the case elsewhere], and also the workmanship can raise the price,’ she says. The greater number of intricate the design, the more you will probably pay. When you are, be sure the store is registered and that you’re making payment on the current day prices, as set from the Dubai Gold & Jewellery Group, Regal Assets Dubai Review or around 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, as well as online dealers. ‘You can begin by using a coin (some kind of special UAE ones exist) costing less than Dhs1,000, a little bar of just an ounce, or move all the way up around massive bars weighing several kilos,’ she says. ‘Bullions needs to be saved in a bank vault, not in your house.’
So when is the perfect a chance to buy gold? ‘If only I could possibly predict that,’ says Keren. ‘The best time takes place when prices are low, so that you must monitor the industry,’ she says. But investors also need to be conscious of indicators which play a role in the fluctuating price of gold, including sentiment, governments buying to market gold reserves and once equity pricing is 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 some countries,’ she says. ‘India is the world’s biggest gold importer plus a lot is purchased at Diwali and Akshaya Tritiya, and also during Eid in the Muslim world.’
India could be the world’s biggest importer, there is however often little understanding that explains why Dubai is amongst the best places to buy gold. ‘It’s in part due to historical reasons and because of the sheer number of trade here. Both Arabs and Indians have historically been interested in gold as an alternative to putting profit the financial institution,’ she says. ‘In many cultures it really has been tradition for a lady to utilize the family wealth, particularly before the coming of safe banking. Some traditions die hard.’
For all those eyeing gold investments, Keren reiterates her view that it’s fundamental to proceed with caution. ‘When being bought for investment it needs to be considered an assets class like any other along with the answer to a balanced investment portfolio is diversification. Never place all your money into one asset.
That’s incredibly risky when 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.