Investing in one of the world’s most precious metals can be quite a daunting and risky business. Time Out gets advice from a local expert, regardless if you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager procedure for wealth and its particular fascination with glitz is one of the city’s most intriguing traits. And while there is more on the emirate than supercars and cheap diamonds, the simple fact remains that, as the https://www.youtube.com/watch?v=09zcvcO2FLY, our city is the place to adorn yourself with riches.
In July 2013, gold posted its worst quarterly drop in 113 years. Without tax around the precious metal, Dubai is a perfect location to buy it, but does that mean it’s a worthwhile investment? Not really, based on Keren Bobker, senior financial consultant at Holborn Assets.
‘Unless someone carries a crystal ball it’s impossible to calculate if gold is an excellent investment,’ she says. ‘The price might be volatile and there is absolutely no guarantee that you simply is likely to make any money.’ Unlike many investments, including shares and property, you can’t take an income from this adds Keren. ‘I’m more concerned that individuals develop their savings in a diversified portfolio for long-term benefit, than speculate on gold. It must be kept as not more than five percent of your total investment assets,’ she adds.
Should you decide to buy 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 as well as the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor is not really planning on buying from the machine, thus i imagine it’s much more of a tourist souvenir, especially when considering where many of the machines are.’ Instead, Keren suggests you head straight for your jewellery shops. ‘The most frequent strategy is probably by buying jewellery. This really is largely sold by weight within the UAE [untrue elsewhere], as well as the workmanship can raise the price,’ she says. The greater number of intricate the look, the better you are likely to pay. When you go, ensure the store is registered and therefore you’re make payment on current day prices, as set through the Dubai Gold & Jewellery Group, Regal Assets Dubai or around the Emirates NBD website, www.emiratesnbd.com.
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 begin by using a coin (some kind of special UAE ones exist) costing less than Dhs1,000, a little bar of just an ounce, or move entirely as much as massive bars weighing several kilos,’ she says. ‘Bullions ought to be stored in a bank vault, not in your home.’
And once is the best time to buy gold? ‘If only I could predict that,’ says Keren. ‘The best time occurs when costs are low, which means you must keep an eye on the market,’ she says. But investors also need to be mindful of indicators which bring about the fluctuating cost of gold, including sentiment, governments buying to sell gold reserves so when equity pricing is volatile. In terms of selling, Keren says holidays are frequently a fun 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 and a lot is purchased at Diwali and Akshaya Tritiya, as well as during Eid in the Muslim world.’
India could be the world’s biggest importer, there is however often little understanding as to the reasons Dubai is probably the best places to buy gold. ‘It’s partly as a result of historical reasons and due to the sheer level of trade here. Both Arabs and Indians have historically been interested in gold instead of putting money in the financial institution,’ she says. ‘In many cultures it really has been tradition for a woman to use the family wealth, particularly just before the advent of safe banking. Some traditions die hard.’
For all those eyeing gold investments, Keren reiterates her view that it’s imperative to proceed with caution. ‘When being bought for investment it must be considered an assets class like all other along with the step to a balanced investment portfolio is diversification. Never place all your money into one asset.
That’s incredibly risky when 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 for your jewellery collection.