Did you know that between 2017 and 2021, the total trade of gold in Dubai rose from $43.4bn to $75bn?
Yes, you’ve read that right. Dubai’s world-renowned gold market, favourable tax laws and bustling economy make it a go-to place for expats looking to invest in gold. Whether you have built an impressive investment portfolio over the years or are just starting out, you need to have a good strategy in place to make the most out of it. Here’s a detailed guide on investing in gold bars in the UAE.
Understanding Dubai’s Market
Often dubbed “City Of Gold”, Dubai’s gold market is incredibly active, well-regulated, and offers a range of investment options. Dubai’s famous gold souks, the Dubai Gold and Commodities Exchange (DGCX), and various shops make it easy to buy and sell gold. Plus, while prices in Dubai are often close to international gold rates, local trends and costs vary, giving you a great chance to find good deals. Additionally, keep up with the Dubai Multi Commodities Centre updates and local news on gold to find out the best times to buy and sell at the best times.
Buy From Trusted Dealers
While dealing in gold bars, you should also know where to buy gold bars in Dubai. While the allure of the cheapest prices might reel you in, remember that the city has strict standards for gold trading. Therefore, you need to ensure you are buying from a licensed and reputable dealer to avoid risks of counterfeit or impure gold. Since Dubai’s market is well-regulated, there is no shortage of reputed dealers. Also, don’t forget to ask for a certificate of authenticity, which ensures the purity of your gold. You can look for a hallmark, too, as it adds to your gold’s resale value.
Choose The Right Size Of Gold Bars
Dubai offers gold bars in a range of different sizes, from smaller bars like 5g and 10g to larger ones like 1kg. Smaller bars are easier to sell and are a bit more flexible in the market, while larger bars can be more economical per gram but may need a longer period of holding back to get the best returns. Smaller bars are a better choice when you are starting out as they can be sold off easily, while larger bars are better for seasoned investors with more experience and long-term investment plans.
If you’re starting, consider smaller bars such as 10 gram gold price in Dubai as they can be sold off easily.
Use Dubai’s Tax-Free Status
One of the reasons why Dubai is a haven for expats looking to invest is the lack of capital gains tax. Many countries around the world apply taxes on profits from gold sales which Dubai doesn’t, so any appreciation in value is yours to keep. This can help bolster your returns, especially if you are considering keeping them for a long time.
Consider Your Storage Options
Before you buy gold bars online in the UAE, you need to think carefully about your storage options. While keeping all your gold at home is definitely possible, it can be risky. Many expats opt for secure storage services provided by the dealers for added peace of mind.
Look Out for Changes In Gold Price
Gold bar price in Dubai keeps changing based on economic factors like inflation and currency exchange rates. Staying on top of these changes helps you figure out the right time to buy or sell. Though there usually isn’t much difference in the gold prices in Dubai and the international market, there might be slight differences that might add up to a greater number.
Balance Your Portfolio
While there’s no denying the stability of gold in the market in the face of economic changes, a good investment strategy means balancing it with other assets. Consider investing in stocks, real estate, or bonds to protect against changes in the market.
Know How To Maximise Liquidity
When you are ready to sell, Dubai offers a range of options to do so quickly. You can sell it at the Gold Souk, through online platforms, or even directly to licensed dealers. Make sure your gold bars are well taken care of and keep the certificate indicating weight and authenticity to help get you the best price. Many stores offer expert support to help you make the best choices.
Consider Long-Time Investment
Gold is renowned for the stability it offers in times of economic crisis and market uncertainty. And while there’s no denying the importance of timing when it comes to maximising your returns, holding onto your Dubai gold Bars for a long period of time can be an incredible strategy. The longer you have them, the chances of you benefiting from increases in price. It does well when inflation is high or when the market is shaky, strengthening your portfolio during tough times.
Choosing The Right Dealer
While having a strategy in place is always a great idea while buying Dubai gold bars, it is always crucial to thoroughly check the dealer before you actually invest. Here are a few things you should look into.
- Reputation – Ensure that the place you are planning to buy gold bars online in the UAE is trustworthy and has a good reputation. Make sure that the gold they sell is of the highest quality and purity.
- Options – Investment is never a one-size-fits-all endeavour. Therefore, scour for dealers who offer a range of investment options, allowing you to find the best fit for your budget.
- Pricing – Look into the current gold bars price in Dubai before you invest and go for a dealer that abides by it. Additionally, ensure that their pricing is transparent and not laden with hidden charges that amp up the costs substantially.
- Storage – As an expat, you might not have the best facilities to carry the physical gold with you. Hence, try to opt for a dealer that offers a top-notch storage facility with premium security to ensure that your investment is secure.
- Expert Guidance – As a newbie in the world of investment, it can be tricky to figure out the best course of action on your own. Opt for a dealer that guides you through the process, explaining every step and answering all your doubts. Also, look for dealers offering advice tailored to your specific needs and preferences. That way, you can make investment decisions that yield the best results for you.
