Investing in one of the world’s most precious metals can be quite 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 as well as its fascination with glitz is amongst the city’s most intriguing traits. And nevertheless there is more on the emirate than supercars and cheap diamonds, the very 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. With no tax around the precious metal, Dubai is an ideal destination to buy it, but does that mean it’s a worthwhile investment? Not always, according to Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone carries a crystal ball it’s impossible to predict if gold is a good investment,’ she says. ‘The price could be volatile and there is no guarantee that you simply will make any cash.’ Unlike many investments, including shares and property, you can’t take money from it adds Keren. ‘I’m more concerned that folks increase their savings in the diversified portfolio for their long-term benefit, than speculate on gold. It must be kept as at most five percent of your own total investment assets,’ she adds.
Should you do decide to get gold, don’t be fooled into stocking through to gold bars from a single of Dubai’s gold dispensers (you’ll find them in Atlantis, The Palm and The Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is just not planning on buying from the machine, so I imagine it’s more of a tourist souvenir, especially if you think about where many 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 [incorrect elsewhere], and the workmanship can raise the price,’ she says. The more intricate the design, the greater you are likely to pay. When you go, make sure the store is registered and that you’re paying the current day prices, as set through the Dubai Gold & Jewellery Group, www.youtube.com/watch or about the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought on the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, along with online dealers. ‘You can begin by using a coin (some special UAE ones exist) costing under Dhs1,000, a tiny bar of just an ounce, or move completely as much as massive bars weighing several kilos,’ she says. ‘Bullions needs to be kept in a bank vault, not in your own home.’
Then when is the greatest time to buy gold? ‘If only I was able to predict that,’ says Keren. ‘The best time is when charges are low, which means you must keep close track of the industry,’ she says. But investors should be aware about indicators which contribute to the fluctuating expense of gold, including sentiment, governments buying to offer gold reserves and when equity costs are volatile. In terms of selling, Keren says holidays are often the best time to strike. ‘You may see some small surges at bugold of holidays when gold is traditionally bought in some countries,’ she says. ‘India will be the world’s biggest gold importer plus a lot is purchased at Diwali and Akshaya Tritiya, and also during Eid in the Muslim world.’
India might be the world’s biggest importer, however, there is often little understanding as to the reasons Dubai is probably the the best places to buy gold. ‘It’s in part on account of historical reasons and due to the sheer amount of trade here. Both Arabs and Indians have historically been keen on gold as an alternative to putting profit the bank,’ she says. ‘In many cultures this has been tradition for a lady to utilize the family unit wealth, particularly just before the coming of safe banking. Some traditions die hard.’
For anyone eyeing gold investments, Keren reiterates her view that it’s fundamental to proceed with caution. ‘When being bought for investment it ought to be considered an assets class like every other and the step to a well-balanced investment portfolio is diversification. Never place all your cash into one asset.
That’s incredibly risky if you have no power over market prices,’ she says. But given that you’re in Dubai, there’s no harm in adding the odd piece for your jewellery collection.