Investing within the world’s most precious metals could be a daunting and risky business. Time Out gets advice from a 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 while there is more to the emirate than supercars and cheap diamonds, the very fact remains that, as among 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 on the precious metal, Dubai is an ideal spot to purchase it, but does that mean it’s a rewarding investment? Not always, based on Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone carries a crystal ball it’s impossible to calculate if gold is a great investment,’ she says. ‘The price can be volatile and there is not any guarantee that you just will make money.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that folks develop their savings within a diversified portfolio for long term benefit, than speculate on gold. It should be kept as a maximum of five percent of your total investment assets,’ she adds.
Should you do decide to purchase gold, don’t be fooled into stocking through to gold bars from one of Dubai’s gold dispensers (you’ll discover them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not thinking about buying from your machine, so I imagine it’s even more of a tourist souvenir, especially considering where most of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most frequent approach is probably by buying jewellery. This really is largely sold by weight within the UAE [far from the truth elsewhere], as well as the workmanship can raise the price,’ she says. The better intricate the design and style, the more you can expect to pay. When 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, www.youtube.com/watch or on the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be purchased in the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, in addition to online dealers. ‘You will start having a coin (some kind of special UAE ones exist) costing less than Dhs1,000, a tiny bar of just an ounce, or move entirely around massive bars weighing several kilos,’ she says. ‘Bullions ought to be saved in a bank vault, not in your house.’
So when is the best time for you to buy gold? ‘If only I was able to predict that,’ says Keren. ‘The best time happens when prices are low, therefore you must keep an eye on the industry,’ she says. But investors ought to be conscious of indicators which contribute to the fluctuating expense of gold, including sentiment, governments buying to promote gold reserves and once equity charges are volatile. Regarding 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 a few countries,’ she says. ‘India is the world’s biggest gold importer along with a lot is purchased at Diwali and Akshaya Tritiya, along with during Eid inside the Muslim world.’
India may be the world’s biggest importer, however, there is often little understanding as to the reasons Dubai is probably the best places to buy gold. ‘It’s partly as a result of historical reasons and because of the sheer volume of trade here. Both Arabs and Indians have historically been keen on gold as an alternative to putting cash in the bank,’ she says. ‘In many cultures it has been tradition for a woman to use the family unit wealth, particularly before the introduction 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 as with any other and also the factor 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 provided that you’re in Dubai, there’s no harm in adding the odd piece for your jewellery collection.