Invest in Gold in UAE
When the discussion of investment is on the table, individuals and businesses prefer opting for safer options that offer guaranteed profits and higher returns. However, there is little certainty in the stock and trade market, and the one thing that stands the test of time is Gold. It’s a safe haven, a secure bet, and a feasible option that provides increased protection for your financial investment over the years.
Gold Rates
Often termed a city of gold, Dubai is the pivot for trade and business. Investors and businesses in UAE are inclined towards gold investment and see it as a profitable opportunity for greater returns in the long run. There are numerous ways and advantages of investing your assets in gold. This article will help you discover the potential benefits of gold investment and let you explore popular ways of investing in gold in the UAE.
Why Invest in Gold?
Gold is by far considered the most sought-after mode of investment. It’s a safer option to invest, especially during times of political turmoil and economic turbulence. The valuable metal has preserved its worth over the years and acts as a financial tool to leverage higher returns and profits. Businesses and investors prefer making investments in gold during unstable political regimes as it safeguards them against inflation and saves the investment from the devaluation of the currency.
Gold appreciation has increased drastically over the last 30 years. The metal has performed incredibly well and offered immaculate capital appreciation in long term. Gold investment helps diversify your investment portfolio and protects your cash from rising inflation. These noteworthy benefits have made it the most plumped financial investment tool among businesses and individuals.
How to Invest in Gold in UAE?
If you are thinking of investing in gold within UAE, multiple options might be of interest. Popular methods for gold investment include:
- Buy physical gold, including coins, bullion, and jewellery
- Invest in gold Exchange Traded Funds (ETFs)
- Purchase, store, and sell over the web
- Purchase gold saving certificates
Let’s discuss the options in detail to help you understand the concepts.
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Purchasing Physical Gold in UAE
Investing in gold brings a feeling of contentment. Unlike other forms of financial investment, this method of investing money posits lesser risks and offers an increased capital appreciation. There is no maintenance cost involved and you can buy and save as much gold as you like. There is possibly no risk of damage, after all, a broken piece of gold is still gold and retains its value no matter what.
While it is quite beneficial to buy and store physical gold as an investment, there are risks of it getting stolen or robbed. Also, carrying huge amounts of gold when traveling by air does not seem a nice idea.
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Invest in Gold Exchange Traded Funds (ETFs)
An ETF or an exchange-traded fund is a kind of financial tool that stocks and holds several different investments, including stocks, shares, bonds, and commodities. They are like index funds that track a specific index. ETFs can be purchased and sold on a stock exchange much like regular stocks. ETFs help diversify your portfolio and offer wider exposure than a single position.
Gold ETFs allow the investor to track the movement of the price without actually having to purchase physical gold. Popular gold ETFs include SPDR Gold Trust $GLD, GraniteShares Gold Trust, ProShares Ultra Gold, and iShares Gold Trust $IAU.
To invest in gold ETFs in the UAE, you would need to sign up for a brokerage account to start the process. You can choose from many famous online broker platforms operating in the region.
Etoro is a celebrated name in the country and is one of the world’s most well-liked brokers. You may visit their website to register for an account to start investing in ETFs.
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Buy and Sell Gold Online
Another good option for gold investment is to register for a trading account online that lets you buy, store and sell gold as and when you like. These trading accounts allow registered users to trade gold like other commodities and earn decent profits with lesser risks involved. You may perhaps sell the gold at higher amounts and make greater returns.
You can open a trading account with any of the companies operating online that specialize in trading gold. You can have a free trial to understand better how the platform works before proceeding with a paid account.
XTB can be a good option if you are interested to participate in gold trading online. The platform allows users to trade gold, ETFs, stocks, forex, and a lot of other financial tools. Besides UAE, the company has a presence in many other countries including the UK, Spain, Poland, Germany, and France.
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Gold Trading with the Banks
Banks in the UAE have made the process of gold investment pretty straightforward. You can register for a gold account in any of the banks that offer the option. After opening the account you can quite easily transfer money using a bank deposit or online transfer from other accounts. The bank usually allows the customers to invest in gold as per the present rate in the international market along with a minor fee.
This option of investing in gold is pretty quick and seamless. It lets you purchase fractional amounts and exchange the gold for money quickly. The bank fees might turn you off, but the overall profits are worth the cost.
To operate a gold account in a UAE bank, you must be familiar with the process of trading gold for investment purposes.
Summing It Up
Gold investment is undoubtedly the most preferred form of financial asset investment that the world has witnessed so far. Investors, businesses, and individuals invest in gold in UAE for higher returns and long-term profits. It safeguards the money against inflation, offers capital appreciation, and protects the assets from currency devaluation. If you prefer low-risk investment but still crave better profit returns, then you may be better off buying, storing, and selling gold!
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