LIVING in the GCC since I was six-year old, I have witnessed the development of the gold souks. There was a time when gold jewellery shop-owners would just put a cloth sheet across the entrance of their shop and go to the mosque at prayer time. With time, and influx of people, things changed – doors, locks, safes, alarm systems, CCTV and more were installed.
Today in the UAE, we have plush, fancy, upmarket jewellery stores in luxury malls, but Dubai is still popular for its gold souks. And as we know, the UAE finds ways to stay in the news with its novel and ‘aha’ factors.
The novelty, ‘Gold to Go’ ATMs ‘you’ll never be caught without casual bullion again’ is just one such example. There’s even an internal computer capable of updating the prices every 10 minutes to reflect real-time fluctuations in the market. Not to be outdone, one can enjoy the Burj Al Arab’s 24-karat gold coffee, served with edible gold pieces, and camel’s milk to gold leaf-covered kulfi sticks to confectionary sprinkled with gold dust.
Dubai advantages
Buying gold in Dubai has certain advantages as the purity of gold in ensured with a Bareeq certification. This certificate is issued by Dubai Central Laboratories Department in order to ensure the purity standard of gold.
The tax-free status, perceived purity, wide variety, enhanced bargaining power regarding making charges, and competitive gold prices make Dubai an appealing destination. India dominates the expat community. As of May, the Indian population in UAE is 3.91 million, representing 38 per cent of the expatriate population. And yes, all Indians with their love for the yellow metal are buying gold in the UAE.
Gold is one of the ancient assets of the world, a famous haven against risks in human history, a precious metal, a valuable asset for both jewellery and investment. As prices of goods and services rise due to inflation, the real value of cash holdings tends to decline. But gold retains its intrinsic worth. This makes it an attractive option.
Gold has long been seen as a symbol of security and prosperity. Although many people still hold physical gold, the introduction of ‘paper gold’ has completely changed how investors can obtain this valuable commodity. Investors seeking to invest in gold have options of buying both physical and paper gold.
And now, paper gold
When it comes to buying physical gold, most people think of jewellery. On the other hand, paper gold is intangible in the form of financial assets like mutual funds and exchange-traded funds. It is prudent to be aware of the benefits and drawbacks of owing each type of gold before making a decision. Having gold in the form of jewellery or coins gives a sense of security. Its value is not affected by changes in the market or the complexities of financial systems. It is recognised globally as a valuable commodity, making it easy to buy and sell.
On the other hand, paper gold can be easily bought and sold on the financial markets. This makes it convenient for investors to enter or exit their positions. Investing in paper gold often involves lower transaction costs compared to physical buying, storing, and insuring gold.
