Investing within the world’s most precious metals can be a daunting and risky business. Time Out gets advice from a local expert, no matter whether you’re after bars, bullions or kilos.
To outsiders, Dubai’s eager approach to wealth and 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 actual fact remains that, among the https://www.youtube.com/watch?v=09zcvcO2FLY, our city is where 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 an ideal spot to purchase it, but does that mean it’s a rewarding investment? Not necessarily, based on 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 just is likely to make any money.’ Unlike many investments, including shares and property, you can’t take an income from using it adds Keren. ‘I’m more concerned that people build-up their savings in a diversified portfolio for his or her long-term benefit, than speculate on gold. It should be kept as not more than five percent of your total investment assets,’ she adds.
Should you do decide to buy gold, don’t be fooled into stocking high on gold bars from one of Dubai’s gold dispensers (you’ll find them in Atlantis, The Palm along with the Dubai Mall). ‘It seems very gimmicky,’ says Keren. ‘A serious investor will not be thinking about buying from the machine, so I imagine it’s a greater portion of a tourist souvenir, especially if you think about where the majority of the machines are.’ Instead, Keren suggests you head straight for the jewellery shops. ‘The most typical strategy is probably by buying jewellery. This really is largely sold by weight in the UAE [not the case elsewhere], and also the workmanship can increase the price,’ she says. The greater intricate the style, the more you will definitely pay. When you are, ensure the store is registered which you’re make payment on current day prices, as set from the Dubai Gold & Jewellery Group, Regal Assets Dubai or about the Emirates NBD website, www.emiratesnbd.com.
Gold bullions can be bought with the gold souks and certain banks, including Emirates Gold, Al Abayad Jewellers in Sharjah and Credit Suisse, as well as online dealers. ‘You can begin using a coin (some special UAE ones exist) costing less than Dhs1,000, a very small bar of just an ounce, or move entirely around massive bars weighing several kilos,’ she says. ‘Bullions needs to be kept in a bank vault, not in your house.’
So when is the greatest time to buy gold? ‘If only I really could predict that,’ says Keren. ‘The best time takes place when costs are low, so you must keep watch over the current market,’ she says. But investors ought to be aware of indicators which bring about the fluctuating price of gold, including sentiment, governments buying to market gold reserves and whenever equity charges are volatile. Concerning selling, Keren says holidays are usually a fun 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 along with a lot is bought at Diwali and Akshaya Tritiya, in addition to during Eid within the Muslim world.’
India could be the world’s biggest importer, but there is often little understanding why Dubai is one of the best places to buy gold. ‘It’s to some extent due to historical reasons and as a result of sheer amount of trade here. Both Arabs and Indians have historically been interested in gold rather than putting profit your budget,’ she says. ‘In many cultures it really has been tradition for a woman to put on the household wealth, particularly just before the introduction of safe banking. Some traditions die hard.’
For people eyeing gold investing, Keren reiterates her view that it’s fundamental to proceed with caution. ‘When being bought for investment it must be considered an assets class as with any other along with the step to a balanced investment portfolio is diversification. Never place all your money into one asset.
That’s incredibly risky once you have no control over market prices,’ she says. But provided that you’re in Dubai, there’s no harm in adding the odd piece to your jewellery collection.