Investing at one of the world’s most precious metals could 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 approach to wealth along with its fascination with glitz is one of the city’s most intriguing traits. And as there is more for the emirate than supercars and cheap diamonds, the very fact remains that, as 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. With no 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 includes a crystal ball it’s impossible to predict if gold is a superb investment,’ she says. ‘The price could be volatile and there is not any guarantee that you can make any money.’ Unlike many investments, including shares and property, you can’t take money from using it adds Keren. ‘I’m more concerned that individuals 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 respective total investment assets,’ she adds.
Should you decide to buy gold, don’t be fooled into stocking on gold bars from one of Dubai’s gold dispensers (you’ll see them in Atlantis, The Palm and The Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor will not be thinking about buying from a machine, therefore i imagine it’s more of a tourist souvenir, especially when considering where most of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most frequent approach is probably by buying jewellery. This is certainly largely sold by weight from the UAE [incorrect elsewhere], along with the workmanship can raise the price,’ she says. The greater number of intricate the style, the greater number of you can expect to pay. Whenever you go, make sure the store is registered and therefore you’re making payment on the current day prices, as set with the Dubai Gold & Jewellery Group, Regal Assets Dubai gold or around the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought in the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, in addition to online dealers. ‘You can start using a coin (some kind of special UAE ones exist) costing lower than Dhs1,000, a very small bar of just an ounce, or move all the way approximately massive bars weighing several kilos,’ she says. ‘Bullions needs to be stored in a bank vault, not in your house.’
Then when is the perfect time for you to buy gold? ‘If only I could predict that,’ says Keren. ‘The best time happens when pricing is low, therefore you must monitor the current market,’ she says. But investors also need to be conscious of indicators which give rise to the fluctuating cost of gold, including sentiment, governments buying to market gold reserves and whenever equity prices are volatile. Regarding selling, Keren says holidays tend to be 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 may be the world’s biggest gold importer as well as a lot is bought at Diwali and Akshaya Tritiya, along with during Eid in the Muslim world.’
India might be the world’s biggest importer, but there is however often little understanding that explains why Dubai is probably the best places to buy gold. ‘It’s partly on account of historical reasons and due to the sheer volume of trade here. Both Arabs and Indians have historically been keen on gold rather than putting money in the bank,’ she says. ‘In many cultures it has been tradition for a lady to put on the household wealth, particularly just before the development of safe banking. Some traditions die hard.’
For anyone eyeing gold investments, Keren reiterates her view that it’s vital to proceed with caution. ‘When being bought for investment it must be considered an assets class like any other and the answer to a healthy investment portfolio is diversification. Never place all your hard earned dollars into one asset.
That’s incredibly risky in case 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.