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Gold Price in UAE: Why is it low?
When you think of UAE, Dubai is the first thing that pops into the mind because of its global economic and social presence. Especially as a tourist magnet. The list of why you should visit UAE, particularly Dubai, gets longer with each passing day. But the highlighting point would always be that in UAE and Dubai, also called by some the "City of Gold," you get to have Gold items of tremendous variety readily available for all the Gold lovers. Gold, a precious metal, is always considered the safest investment compared to other investments, be it in the shape of jewellery, coins, bars, or rounds.
There was a time UAE and Dubai were unheard of in terms of the topic of Gold. The last two decades have established Dubai as the place to visit if you are a shopaholic and a Gold buyer. Be it the world gold trade or the gold refining sector, the UAE Gold sector covers all aspects, establishing Dubai as a major player in Gold dealings. The popularity of Dubai as a booming Gold market indicates the support for pro-gold government policy from the UAE officials. Now, Dubai works as a gold distribution hub by linking extensive Gold trading ties with other key players like the markets of India and Turkey.
Over the years, Dubai's compliance with international standards of gold sourcing has been questioned frequently, but the latest check and balance from the relevant UAE authorities on Gold are improving the transparency of such importing. The fact remains that Dubai and the UAE appear to be firmly fixed at the center of the world gold trade. The Gold price in the UAE changes daily for multiple Gold sizes (Measured in Karats) and gets published three times a day regularly. Many factors, including the supply and demand of Gold, affect the rate directly and indirectly.
Did you know? Dubai Gold Souk (Souk means Market) is a whole covered corridor market set up for trading Gold. Tourists visit it even if they don't wish to buy any Gold, just for window shopping. There are also thousands of Gold dealers working throughout the UAE region, with most of the setups established in Dubai due to its value as a prominent tourist spot. Selecting the best Gold dealer or shop from so many options can get confusing. One such reliable source of premium quality Gold items and jewellery is Al Romaizan Gold and Jewellery, with over 50 shops in the UAE alone and branches in other vital regional places. Their online store further smooths your Gold buying experience.
Why is Gold Price UAE Considered Low?
The Gold price of the UAE is low compared to other countries around the globe when you compare the per ounce or gram value of Gold on any specific day. Currently, the Gold price stands at 1 Gram Gold = AED 233.05 (United Arab Emirates Dirham). Many reasons, when combined, make up for a low Gold Rate, such as:
- Only 5% VAT (Value Added Tax) is applied to the export or outsourcing of Gold jewellery. On a side note, tourists are also given an option of VAT refunds at the airport.
- Unlike many countries that charge exorbitant excise duties and customs charges, no hidden or extra duties and taxes are imposed on the gold trading.
- An abundant supply of pure Gold
- A rise in US Dollars value inversely affects the UAE Gold Rate. For instance, the prospect of US sanctions on the horizon makes $ US strong and gold prices lower in UAE relative to the previous rate.
8 Points for Buying Gold in Dubai and UAE
Buying Gold online is the trend nowadays, but it can still not beat buying the Gold physically from places like Dubai. Dubai is a haven for you if you wish to physically buy some Gold item or ornament at an affordable price. Here are the 8 points you can follow while going Gold shopping in the UAE.
1.Research Gold Market Prices
Gold rates never stay the same. They even change multiple times during a single day during busy business conditions, just like stocks/ shares. You should check the prices on the internet before going to Gold markets or compare online prices when placing an order online. The latest gold prices are typically displayed on all entrances as the AED prices. So keep an eye on the changing gold rates before making any purchase because this way, you can haggle well with some future Gold retailers.
2. Know about gold Type before Buying Gold
Gold is not just of a single type. Before buying some Gold items, you should thoroughly research all the Gold types available as gold varies depending on Karat and weight. The purity of Gold also changes with the change in Karats; the higher the Karat value, the purer the Gold is. That means out of multiple Karats like 18, 21, 22, and 24, 24-Karat gold is 100% pure gold which is quite soft in shape as a stand-alone element.
Pure Gold is usually mixed with traces of other metals to harden it up, like silver, nickel, copper, and zinc. Changing the amount of these metal alloys with the Gold component even changes the colour of the final Gold product, producing a wide variety of multi-coloured Gold.
3. Bargain with Confidence
Bargaining or haggling is a complete art. If you don't have this skill, stay confident and don't look shy while buying Gold. Although the prices of Gold are fixed in the gold market, you can still get up to a discount on jewellery using your bargaining skills alone. Try stating 25% less price from the quoted price. Who knows? You might get lucky. You can divide the final price into two categories:
The price per Karat gets changed daily, but it's fixed the same in all the shops in UAE and Dubai as relevant authorities keep a check and balance on Gold Price UAE. Apart from online buying, you can get real-time updates about the changing rate posted outside in the physical Gold markets of Dubai. This price by weight and Karat is fixed; you can't bargain here.
This is the portion of the Gold price for the labour of the jewellery you wish to buy. The more complex and intricate the jewellery piece, the more the Make charge will be set. You can only bargain here on the labour charges, but if multiple shops are selling the same design, you may get away with asking for a lower make charge.
4. Prefer Cash Payment
If you are roaming the Gold markets of Dubai or UAE intending to buy Gold, you should take ample cash for payment. It may sound unsafe on the surface, but if the amount of money can be carried on an individual self conveniently, you should avoid using credit cards. Almost all shops in the gold markets use credit card machines that charge 1% to 2% of the amount.
If the security concern is minor, you can save hundreds and thousands depending on your transaction volume through cash payments.
5. Know the Best Time to Buy
The best time to buy Gold is on Sunday or Saturday as the Internation Gold market opens on Monday. With constant Gold prices, the probability of you getting a perfect Gold transaction gets much higher. Dubai Shopping Festival or Dubai Summer Surprises are some other Best Times to go Gold shopping. At these festivals, you may get amazing deals. The Dubai Shopping Festival is held from December to January every year. The Dubai summer surprises festival is arranged from June to August.
6. Look for the best discounts before Buying Gold
An abundance of Gold dealers means there is healthy competition in the Gold markets of Dubai or UAE. So, you should search the markets for some wonderful discounts or deals. Additionally, you can set your eyes on the most beautiful designs by comparing the whole competition.
7.Don't Stress About the Gold's Purity
For stress-free Gold shopping, Dubai and UAE are the places for you because they don't just provide lower Gold Rates but also ensure the purity of the gold. Strict laws and fierce competition constitute a perfect combo, setting the highest standard among gold sellers. You can relax worrying about the material quality and focus better on the Gold styles available.
Still, go for jewellery marked and certified by the Dubai Central Laboratories Department (DCLD) through Bareeq Certification while buying in Dubai. These are called Hallmark markings.
8. Check for Warranty and After-Sale Services
Buying gold is not enough; you should always check the warranty and after-sale services offered by a Gold seller. Most reputed Gold dealers provide a one-year warranty, including free repair services. Such repair services can come in handy in case of any accidental damage to the Gold item.
Be it personal shopping desire or long-term investment goal, buying Gold can change your life for the better. Because in dire circumstances, when currencies crash, your Gold will be your secure ally and a backup plan. The lowest Gold Price UAE can turn your life around pleasantly.
Why get confused in selecting the best-experienced Gold seller in the UAE and Dubai when you have the professional, reliable services of Al Romaizan Gold & Jewellery within your reach. In addition to multiple physical stores in the UAE region, they boast a supportive online shopping facility since 2020 for their esteemed Gold clients. They have made ordering perfect Gold jewellery so easy a process.