Gold Rush Explained: Top Reasons Why People Buy Gold in Dubai

While a diamond may be a girl’s best friend, for some, gold’s the ultimate winner.

Irrespective of high or low prices, gold shops are full of clients who are not just looking for buying jewellery but are also exploring a prudent way to invest a few thousand in the form of gold bars or coins. The grinning eyes of enthralled residents and tourists looking around, observing the display of lustrous ornaments as they’ve never seen it before, is in itself an overwhelming sight.

This emirate is known as “City of Gold”, and surely for good reason. First of all, gold is cheaper here than anywhere else in the world. Do you know any other place where the whole Souq is dedicated just for gold? It’s only Dubai. Secondly, when it comes to the purity of the metal, the city makes no compromises. That is to say, a strict inspections regime helps ensure the purity of gold.

Take a look at the top reasons why people prefer to buy gold rings in Dubai.

Great Way to Save

People consider gold as a form of saving. As the resale value of this metal is good, you can sell it anytime, anywhere. You won’t lose money as compared to other jewels.

While a diamond is considered as a good investment opportunity, they cannot be sold anytime. You may have to bear a loss. Moreover, it is quite easy to get discounts on this gem but never on 22 or 24-carat gold. That is why yellow gold is more precious and worth more than diamonds. The liquidity of the latter is high.

Buy Gold

Tangible Asset

If you buy physical gold, you can hold it in your hand – this is something which you can’t do with most of the other investment. Interestingly, real gold can’t be destroyed by water, fire or time.

Unlike other possessions, gold doesn’t need any maintenance. Since there is so much gold available, it has an inherent value that the other commodities don’t have.

Deflation Protection

Deflation is characterized as a period in which the prices decrease, business activity slows down, and the economy is loaded by excessive debt, which has not been observed globally since the Great Depression of the 1930s.

During the Depression, the relative buying power of gold ascended while other prices dropped abruptly. This is because people pick to hoard cash, and the safest place to hold it was in gold and gold coins at that time. Therefore, gold is considered as the safest form of investment during crucial periods.

Geopolitical Uncertainty

Gold retains its value even in times of geopolitical uncertainty. Often called “crisis commodity,” the upheaval compels the people to buy more gold as the world tensions rise. During such times, it often beats other investments.

Uniqueness

Diversity in designs is one of the major motives people love to shop for gold in Dubai. The quality, the shine, and the variety in designs amuse them. The gold in the ‘city of gold’ is simply gorgeous.

Dubai imports jewellery from all over the world, owing to the zero-import duty tax on gold and TT bars and low tax on jewellery pieces. India, Italy, Singapore, Malaysia, Bahrain, and off-late Turkey are key places where Dubai imports gold and jewellery.

As for purity, Dubai Municipality does systematic random examinations to guarantee the purity of gold imported into the city is high and of the best quality.

Follow International Market Rates

The gold in this emirate follows International Market rates. By doing so, it makes sure the uniformity of prices across all jewellery shops in Dubai. As the gold price fluctuates just like the stock market, it gives a great opportunity to the people to take advantage of falling prices. Therefore, you need to check gold prices every day.

Bargaining in Making charges

People can easily bargain about the making charges of gold in Dubai. Once, at a store in Dubai, the shop manager was heard talking about an immense gold piece on show priced Dh950,000 and that it can be brought down to Dh750,000. He said that he will reduce the price a little. Isn’t it amusing?

Increase in The Value

People usually buy gold, especially coins, as an investment so that they can exchange it for money when the need arises. Whenever they plan to exchange it, generally, the jewellers buy the gold as per the current rate.

Given the current scenario, if you consider the last 20 years, you will notice that the rate of gold has increased greatly. There are great chances that it will continue to rise in the near future. This is one of the reasons that compel people to buy and hoard gold as much as they can.

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