Did you know that Dubai is known as the city of gold? The emirate is a great platform for gold investors that can buy gold at competitive prices and with the added benefits of having to pay no tax on the precious metal. This is especially important today as precious metals and diamonds are becoming the go-to place for safe money storing.
Diamonds are always a preferred choice for investors in UAE. Prices are normally much cheaper than in many other countries (even up to 50% cheaper thanks also to no taxes). However, many things need to be considered when buying. Diamonds don’t normally appreciate over time and are harder to sell. In addition, it is important to be buying only from reputable sellers and jewelers and make sure certifications are available to attest to the quality and purity of the precious stone.
Should you invest in gold instead? Well, many financial advisers think it might be the best approach against highly volatile market conditions. Normal investing cautions however need to be applied. First of all, it is important to study the market well; prices vary often and greatly, so it’s essential to understand when the market is at a low point.
Investing all in gold is also not a good idea as diversification is always a must to withstand any sudden changes in market conditions.
Choosing the right suppliers is also important. If you are planning on buying gold bullions and coins then it is important to do so at the gold souks or reputable banks. Jewelry is also an option at registered jewelers, keeping in mind however, that the price will reflect also the workmanship that was put in creating the piece. Storing the possession, however, is definitely a concern.
A much easier option is given by electronically-held gold, a new opportunity that solves the problem of holding and storing physical gold. The Gold Investment Account is offered by Emirates NBD to its customers and works like a foreign currency account; it has its own currency code designation (XAU) and is denominated in troy ounces. Buying gold is as easy as transferring money from a normal bank account to the XAU account. The minimum requirement is 500AED and it is possible to establish periodic investments.
Yes, jewelry is literally worth its weight in gold and diamonds are always appreciated, but e-gold is definitely the easier option. Those who choose to invest in gold, as an alternative to putting money in a bank’s savings account where they’ll earn little to nothing (often anywhere between 0.5 per cent and 1.5 per cent annual interest) might want to consider this easy, online option.
Contact us for more info and start taking advantage of the many opportunities the Emirates offer to investors.