Investing at one of the world’s most precious metals might be a daunting and risky business. Time Out gets advice from a local expert, regardless of whether you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager strategy to wealth along with its fascination with glitz is one of the city’s most intriguing traits. And while there is more towards 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 any tax in the precious metal, Dubai is an ideal place to purchase it, but does that mean it’s a rewarding investment? Not always, according to Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone includes a crystal ball it’s impossible to calculate if gold is a superb investment,’ she says. ‘The price could be volatile and there is absolutely no guarantee that you simply can make any cash.’ Unlike many investments, including shares and property, you can’t take an income from it adds Keren. ‘I’m more concerned that people build up their savings in the diversified portfolio for their long-term benefit, than speculate on gold. It needs to be kept as not more than five percent of your respective total investment assets,’ she adds.
If you do decide to invest in gold, don’t be fooled into stocking high on gold bars from a single of Dubai’s gold dispensers (you’ll locate them in Atlantis, The Palm and The Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not really thinking about buying from a machine, therefore i imagine it’s a greater portion of a tourist souvenir, especially when you consider where most of the machines are.’ Instead, Keren suggests you head straight to the jewellery shops. ‘The most common strategy is probably by buying jewellery. This can be largely sold by weight from the UAE [incorrect elsewhere], along with the workmanship can improve the price,’ she says. The better intricate the design, the greater number of you will definitely pay. When you are, ensure the store is registered and this you’re making payment on the current day prices, as set by the Dubai Gold & Jewellery Group, www.youtube.com/watch or in the Emirates NBD website, www.emiratesnbd.com.
Gold bullions are sold on the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, as well as online dealers. ‘You may start by using a coin (some kind of special UAE ones exist) costing less 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 held in a bank vault, not in your home.’
So when is the best time to buy gold? ‘If only I could possibly predict that,’ says Keren. ‘The best time takes place when pricing is low, which means you must keep watch over the marketplace,’ she says. But investors should be mindful of indicators which play a role in the fluctuating cost of gold, including sentiment, governments buying to sell gold reserves and whenever equity prices are volatile. As for selling, Keren says holidays tend to be a great 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 purchased at Diwali and Akshaya Tritiya, along with during Eid from the Muslim world.’
India might be the world’s biggest importer, but there is often little understanding that explains why Dubai is one of the the best places to buy gold. ‘It’s partly due to historical reasons and as a result of sheer number of trade here. Both Arabs and Indians have historically been keen on gold rather than putting funds in your budget,’ she says. ‘In many cultures it really has been tradition for a woman to use the household wealth, particularly prior to the coming of safe banking. Some traditions die hard.’
For all those eyeing gold as an investment, Keren reiterates her view that it’s important to proceed with caution. ‘When being bought for investment it should be considered an assets class like every 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 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.