Dubai is fast becoming popular for many things, from crude oil to skyscrapers, pilgrimage, and even gold. As home to the world’s finest gold products, Dubai is an amazing place to buy and sell gold.
However, without the right guidance, you’d find it difficult to navigate the gold market in the oil city. Therefore, in this article, you’ll get a detailed guide on how to buy and sell gold in Dubai.
Why Buy Gold in Dubai?
Dubai is one of the best places in the world to buy gold, thanks to its rich gold souks (markets) and strict regulations on quality and pricing.
According to Statista, the United Arab Emirates (UAE) is the world’s fifth-largest gold exporter. It made a total gold export worth $24.1 billion in 2021 and has reportedly increased this volume in the past two years.
Due to the availability of numerous gold souks, jewelry shops, and bullion dealers in Dubai, it’s quite accessible and convenient to buy gold in Dubai. This is true for residents, tourists, and international traders.
However, one of the core reasons Dubai is a great place to buy gold is its quality assurance on merchandise. The Dubai gold souk and other gold dealers ensure strict adherence to quality standards, as the authorities conduct regular inspections of items sold by jewelers.
Most gold products sold in Dubai by jewelers are hallmarked to prove their authenticity and purity. Therefore, when you buy a gold product in Dubai, you receive a gold purity hallmark certificate stating its gold content and weight.
Things to Consider When Buying or Selling Gold in Dubai
If you’re not an expert on gold products, you might find it a bit difficult to buy and sell gold in Dubai. However, considering these things will help you transact successfully in the city:
Purity and Weight
The purity and weight of the gold items you’re buying or selling are essential considerations you must make when transacting gold in Dubai.
Different gold types have varying levels of purity. For example, 24-karat gold is 100% pure, while 22-karat gold contains 91.6% pure gold and 8.4% metals, usually copper or silver.
Gold Prices
The prices of gold in Dubai and most parts of the world are based on their weight per gram. These prices fluctuate daily based on many factors, and the world adjusts accordingly.
Dubai follows these international gold prices. Therefore, another important consideration you must make when buying gold in Dubai is the fluctuation in gold prices.
Stay informed on the gold prices before making a purchase or sale. This prevents you from overpaying for or underselling an item.
Taxes and Duties
While Dubai is known for its tax-free environment, you must be mindful of any applicable taxes or duties that may apply to the gold items you’re buying.
Reputation of the Seller or Buyer
Make sure to only work with a reputable seller or dealer with a track record of reliability and authenticity.
Look for dealers accredited by the Dubai Good Delivery organization to ensure you’re getting standard gold materials.
Also Read: 7 Investment Mistakes You Must Avoid in Dubai
How to Buy Gold in Dubai
Here’s a step-by-step process on how to buy gold in Dubai:
Make Detailed Research
The first step before you buy any gold material in Dubai is to do proper research. Find out the current market prices of gold and bear in mind that they fluctuate daily.
Some websites like Bloomberg, Metals Daily, and Monex provide real-time gold prices. Leverage the information they provide to negotiate with dealers.
Also, research the different types and measurements of gold and decide on what you want. The most common options are bars, coins, and jewelry.
Choose a Reputable Dealer
Once you’re sure of what you want, the next step is to research the dealers available in the oil city. Dubai has many gold dealers, from gold souks to jewelry shops and bullion dealers.
Make sure to buy only from accredited dealers to avoid getting fake products or paying more than the gold is worth. Dealers accredited by the Dubai Good Delivery organization are more reputable and are consistent with their sales terms.
Verify the Authenticity of the Product
The next step after finding a reputable dealer of the product you want to buy is to verify the authenticity of the product. There are many ways you can do this, but the most common and effective way is through hallmarking.
Genuine gold products are usually hallmarked with either the manufacturer’s stamp, the purity score, or both.
Negotiate and Make Payment
Dubai gold prices are based on weight, and since they work with international prices, there’s limited room for negotiation. However, if you’re making them into jewelry, you can negotiate the making price.
Once you’re okay with the product and terms of sale, make payment. Some dealers accept payments in credit or debit card, cash, or bank transfers.
Receive Documentation
Once payment is made, you’ll get proper documentation for your purchase. Make sure to collect the receipt or invoice and the certificates of purity.
These documents are essential for proving ownership, especially if you’re traveling or exporting them, and for making insurance claims. You’ll also need them when you want to resale the item.
Also Read: 5 Real Estate Investment Opportunities that Work in Dubai
How to Sell Gold in Dubai
Here’s a step-by-step process on how to sell gold in Dubai:
Assess the Market
The first step in selling gold in Dubai is to assess the market to understand the current gold prices and the demand for them.
Except you’re desperate to sell, it’s advisable to monitor trends to know if gold prices are rising or falling at the time you want to sell.
Find a Buyer
Like in buying, there are various options to sell gold in Dubai. You can sell your gold in gold souks, jewelry shops, or bullion dealers. They’ll weigh your product, assess the purity certificate, and give you a quote.
Compare prices from different buyers or dealers to get the best price for your product.
Agree on Price
Considering the market rates and the condition of your gold product, negotiate and agree on a price with a buyer. Then, receive payments in a way that’s convenient for you, whether it’s bank transfer, cash, or any other method.
Make a Sale
Conclude the sale and submit the product’s documents to the buyer. As long as the exchange has been made and both parties are satisfied, the transaction is a wrap.
Also Read: Real Estate vs Precious Metals: Where Should I Invest My Money in UAE?
Conclusion
Dubai is a great place to transact in gold with ease, as there are numerous buyers and sellers. You can buy or sell your gold products without much difficulty and fear of getting counterfeits, as there are strict measures in place to ensure you get the best products in the city.
Hopefully, this article will guide you to buy or sell gold in Dubai effectively and without much difficulty.
