Investing within the world’s most precious metals might be a daunting and risky business. Time Out gets advice from your local expert, whether or not you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager method of wealth and its particular fascination with glitz is one of the city’s most intriguing traits. And while there is more on the emirate than supercars and cheap diamonds, the actual fact remains that, among the buy gold online in 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 around the precious metal, Dubai is a perfect spot to buy it, but does that mean it’s a worthwhile investment? Not necessarily, based on Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone has a crystal ball it’s impossible to predict if gold is a great investment,’ she says. ‘The price may be volatile and there is absolutely no guarantee that you simply can make any money.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that folks build-up their savings in a diversified portfolio for his or her long-term benefit, than speculate on gold. It ought to be kept as a maximum of five percent of the total investment assets,’ she adds.
If you do decide to invest in 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 as well as the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is just not going to buy coming from a machine, thus i imagine it’s much more of a tourist souvenir, especially when you consider where most of the machines are.’ Instead, Keren suggests you head straight for that jewellery shops. ‘The most typical strategy is probably by purchasing jewellery. This is largely sold by weight in the UAE [not the case elsewhere], and the workmanship can increase the price,’ she says. The better intricate the design and style, the greater you can expect to pay. Whenever you go, be sure the store is registered which you’re paying the current day prices, as set by the Dubai Gold & Jewellery Group, Regal Assets Dubai gold or in the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought at the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, along with online dealers. ‘You can begin having a coin (some special UAE ones exist) costing lower than Dhs1,000, a tiny bar of just an ounce, or move completely up to massive bars weighing several kilos,’ she says. ‘Bullions should be stored in a bank vault, not in your own home.’
When is the best time and energy to buy gold? ‘If only I was able to predict that,’ says Keren. ‘The best time is when charges are low, therefore you must monitor the market,’ she says. But investors ought to be mindful of indicators which contribute to the fluctuating cost of gold, including sentiment, governments buying to market gold reserves and once equity charges are volatile. In terms of 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 many countries,’ she says. ‘India will be the world’s biggest gold importer as well as a lot is bought at Diwali and Akshaya Tritiya, as well as during Eid in the Muslim world.’
India could 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 partly due to historical reasons and due to the sheer amount of trade here. Both Arabs and Indians have historically been interested in gold as an alternative to putting money in your budget,’ she says. ‘In many cultures it really has been tradition for a woman to put on the household wealth, particularly ahead of the development of safe banking. Some traditions die hard.’
For anyone eyeing gold investments, Keren reiterates her view that it’s imperative to proceed with caution. ‘When being bought for investment it ought to be considered an assets class like every other and the answer to a balanced investment portfolio is diversification. Never place all your hard earned dollars into one asset.
That’s incredibly risky once you have no control over market prices,’ she says. But as long as you’re in Dubai, there’s no harm in adding the odd piece to the jewellery collection.