Known to be the City of Gold, Dubai not only makes one of the best holiday destination, but it’s also an economic hub and the ideal platform to buy gold. Gold is not just something which has ornamental value, but it has monetary value as well, which makes it an excellent investment option.
The emirate was given the title of City of Gold for a good reason – the price of gold is cheaper in Dubai than anywhere else and a Souk (shops) is dedicated just for gold. Having maintained an excellent reputation of the yellow metal worldwide, UAE wins when it comes to purity of gold owing to the strict inspections regime ensuring the purity.
Gold Is Cheaper In Dubai
Anyone who lives in Dubai, knows the perks of buying gold. It’s the region which is exempted from taxes. Buyers are only expected to pay for the value of the gold jewellery, however, only 5% tax (VAT) is imposed on any item purchased which still makes buying gold in Dubai a cheaper deal.
Comparatively, in countries like India, the purchases of gold include VAT, GST and many other taxes, making it quite pricier. A plus point for buying gold in Dubai is that you can negotiate the prices in the marketplace. This may be challenging in huge, lavish malls, but it’s possible in Dubai Gold Souk. Depending upon your bargaining skills, you can bring the charges down to a significant amount.
Why You Should Check Gold Prices Everyday
Dubai’s gold prices follow international rates and therefore, there’s uniformity of prices across jewellery stores in the region. Since Dubai’s gold prices fluctuate just like that in stock market, you can take the benefit of falling prices as buyers.
This is the reason why it’s recommended to check gold prices in Dubai every day as you never know when you recognize a trend of gold prices falling, whereby you may reap the benefits of smart investment.
When you plan on buying gold in Dubai, you may want to check the gold rates before you head to the souk. There are generally two rates for gold:
- Price of gold – 1 gram of gold
- Prices displayed on billboards
You should be checking both and consider the 5% VAT on gold resulting in an increase in the prices too. Just like stock exchange, you never know when you can score high, so keep your eye out for the gold prices.
What’s The Difference Between 24k And 18k Gold In Dubai?
In Dubai, the primary unit of measurement for gold is known as karat. A karat determines the purity of gold and a high karat of, for example, 24k, would be more pure than 18k. An 18k gold would be mixed with silver, copper and other alloys, but a 24k gold would consist solid gold without any mixing of metal in it.
How is Dubai’s Gold Rate Linked With US Dollar?
As mentioned above, Dubai’s gold prices follow international rates, that is, in US dollars. Typically, there’s an inverse relationship between the gold and dollar rate, and gold prices go up when dollar is weakened, but they tend to fall when dollar is strengthened.
Factors That Influence Dubai’s Gold Prices
There are many factors which affect the gold rates in Dubai, including the following:
1. Demand for gold
Since US, China and India are main consumers of gold in Dubai, their economic growth and investment preferences have a direct impact on the gold rate of Dubai.
2. Tax and import duties
Gold rate in Dubai is highly influenced by the fluctuations in tax rate and import duties since gold is produced in some countries, but imported by most.
3. Production of gold
The discovery of new gold mines also influences gold prices in UAE as the mining companies may sell them at a higher rate depending upon the production cost.
Gold Rates in Dubai As Of Oct, 12, 2021
On a concluding note, amidst COVID-19 pandemic, it can be risky investing in anything. Where most markets are collapsing, the gold market has been thriving and is therefore, deemed as the safest option for investment. You should be vigilant about checking Dubai’s gold rates daily to make sure you can invest smartly.