Investing within the world’s most precious metals can be a daunting and risky business. Time Out gets advice coming from a local expert, regardless of whether you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager approach to wealth along with its fascination with glitz is one of the city’s most intriguing traits. And as there is more towards the emirate than supercars and cheap diamonds, the fact remains that, as one of the buy gold online Dubai, our city is the place 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 a great destination to buy 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 features a crystal ball it’s impossible to calculate if gold is a good investment,’ she says. ‘The price can be volatile and there is not any guarantee that you just is likely to make money.’ Unlike many investments, including shares and property, you can’t take an income from using it adds Keren. ‘I’m more concerned that men and women build-up their savings in a diversified portfolio for his or her long term benefit, than speculate on gold. It should be kept as at most 5 percent of your own total investment assets,’ she adds.
If you do decide to get gold, don’t be fooled into stocking high on gold bars in one of Dubai’s gold dispensers (you’ll locate them in Atlantis, The Palm as well as the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is just not thinking about buying coming from a machine, therefore i imagine it’s a greater portion of a tourist souvenir, especially considering where many of the machines are.’ Instead, Keren suggests you head straight for that jewellery shops. ‘The most typical method is probably by purchasing jewellery. This really is largely sold by weight inside the UAE [not the case elsewhere], as well as the workmanship can boost the price,’ she says. The greater number of intricate the design, the greater you are likely to pay. Whenever you go, ensure that the store is registered which you’re making payment on the current day prices, as set from the Dubai Gold & Jewellery Group, buy gold in Dubai Regal Assets or in 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, and also online dealers. ‘You will start having a coin (some kind of special UAE ones exist) costing under Dhs1,000, a tiny bar of just an ounce, or move all the way up to massive bars weighing several kilos,’ she says. ‘Bullions ought to be saved in a bank vault, not in your home.’
And once is the perfect time for you to buy gold? ‘If only I could predict that,’ says Keren. ‘The best time occurs when charges are low, which means you must keep watch over the current market,’ she says. But investors ought to be aware of indicators which contribute to the fluctuating value of gold, including sentiment, governments buying to promote gold reserves so when equity costs are volatile. Concerning selling, Keren says holidays are usually a fun 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 plus a lot is bought at Diwali and Akshaya Tritiya, in addition to 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 in part as a result of historical reasons and because of the sheer level of trade here. Both Arabs and Indians have historically been interested in gold as an option to putting cash in the financial institution,’ she says. ‘In many cultures it really has been tradition for a lady to wear the family unit wealth, particularly just before the development of safe banking. Some traditions die hard.’
For all those eyeing gold investments, Keren reiterates her view that it’s important to proceed with caution. ‘When being bought for investment it must be considered an assets class like every other as well as the step to a well-balanced 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 given that you’re in Dubai, there’s no harm in adding the odd piece to the jewellery collection.