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 for the emirate than supercars and cheap diamonds, the actual fact remains that, as one of the world’s great gold trading hubs, our city is the place to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without any tax on the precious metal, Dubai is a great destination to purchase it, but does that mean it’s a worthwhile investment? Not always, as outlined by Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone has a crystal ball it’s impossible to predict if gold is an excellent investment,’ she says. ‘The price can be volatile and there is not any guarantee that you simply can certainly make any cash.’ Unlike many investments, including shares and property, you can’t take an income from this adds Keren. ‘I’m more concerned that men and women build up their savings within a diversified portfolio for their long term benefit, than speculate on Regal Assets Dubai review. It should be kept as a maximum of five percent of the total investment assets,’ she adds.
If you decide to buy gold, don’t be fooled into stocking high on gold bars from one of Dubai’s gold dispensers (you’ll discover them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not really planning on buying coming from a machine, thus i imagine it’s more of a tourist souvenir, especially considering where many of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most common way is probably by buying jewellery. This is certainly largely sold by weight in the UAE [untrue elsewhere], and the workmanship can boost the price,’ she says. The greater intricate the design, the more you are likely to pay.
Gold bullions are sold in the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, and also online dealers. ‘You can start by using a coin (some kind of special UAE ones exist) costing lower than Dhs1,000, a small bar of just an ounce, or move all the way up approximately massive bars weighing several kilos,’ she says. ‘Bullions needs to be stored in a bank vault, not within your house.’
So 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 current market,’ she says. But investors ought to be conscious of indicators which contribute to the fluctuating value of gold, including sentiment, governments buying to offer rega1 reserves and once equity pricing is volatile. Concerning selling, Keren says holidays are usually a fun time to strike. ‘You may see some small surges sometimes of holidays when gold is traditionally bought in a few countries,’ she says. ‘India is the world’s biggest gold importer and a lot is bought at Diwali and Akshaya Tritiya, and also during Eid from the Muslim world.’
India could be the world’s biggest importer, there is however often little understanding why Dubai is amongst the best places to buy gold. ‘It’s to some extent due to historical reasons and as a result of sheer volume of trade here. Both Arabs and Indians have historically been keen on gold instead of putting profit the lender,’ she says. ‘In many cultures it has been tradition for a woman to utilize the household wealth, particularly before the development of safe banking. Some traditions die hard.’
For people eyeing gold for an investment, Keren reiterates her view that it’s vital to proceed with caution. ‘When being bought for investment it must be considered an assets class as with any other and the factor to a healthy investment portfolio is diversification. Never put all your hard earned dollars into one asset.
That’s incredibly risky once you have no power over market prices,’ she says. But as long as you’re in Dubai, there’s no harm in adding the odd piece to your jewellery collection.