Dubai is known as the City of Gold. The gold market of Dubai is one of the most famous tourist attraction. Every year more than $75 billion gold is sold in the Dubai gold market because of the affordable gold rate in Dubai. Most of the people like to buy gold from Dubai. If you are planning to buy gold from Dubai, here are some of the things you need to consider.
The gold market in Dubai and what factors contribute to the gold rate in Dubai
Dubai has the biggest gold market in the world where you will find different shops. Gold trading is very important globally. It is considered as a safe trade for the investors. The Today gold rate in Dubai is affected by the following factors.
- The gold price increases when the international demand for gold is higher.
- There is a strong relationship between the price of gold and US dollar. When the value of the dollar decreases the rate of gold increases
- With the increase in the oil prices, the rate of gold is increased.
- Political crises negatively affect the local markets that make individuals invest in gold due to which the gold rate increases.
Gold price comparison between Dubai and other countries
In Dubai, the Gold Souk will give a general rate of gold that will be followed by all the gold traders. They are not allowed to change the price. However, in India and Pakistan, the price of gold might vary from city to city according to added tax and unit cost. This is the reason that rate of gold in Dubai is the cheapest. However, there is no fixed rate because the value fluctuates every day.
Places to buy gold in Dubai
Gold in Dubai is sold according to the gold price and making charges. There are different famous places from where you can buy gold in Dubai.
The Gold Souk
The Gold Souk is the reason Dubai is called the city of gold. There are more than 400 shops in the Gold Souk and all of them have their own designs and styles. You will find all types of gold in this market.
The Gold and Diamond Park
There are 90 best jewelry retailers located in this air-conditioned mall. Here you will find some of the unique designs that are hard to find in the market. You can easily find an artisan who can craft custom jewelry
It is located in the Dubai Mall. Here you will find intricate designs and Italian brands. The shop has many expensive gems that you can have embedded in your gold jewelry.
Gold types and what they mean
There are different types of gold that depend on the purity of gold. Here are some of the common types you should consider.
- 24 K: it is the purest form of gold, which means that are 24 parts gold that makes 100% gold.
- 22 K, 21 K, and 18 K: in these types of gold there will be 22, 21 and 18 parts gold and the rest of the balance depends on the metals added as an impurity to harden the gold.
Silver, nickel, copper, and zinc are the metals that are commonly added to gold.
Gold and taxes in Dubai
The most important thing that helps to determine the gold price in Dubai is the taxes. In Dubai, there are no GST or other taxes on the gold. This the reason Dubai has the cheapest rate of gold. There was a fake new that taxes will be added. However, the government has not passed any law regarding the taxes.
How to buy gold in Dubai
When you have to buy gold in Dubai, the price is not the only thing you have to consider. There are many other important factors that will help you find the perfect jewelry items. It is important that you know the type of gold that you would like to buy (24 k, 22 K and so on). Assure that you have enjoyed budget to invest in the type of gold that you want.
Once you enter the market assure that you visit different shops to get an idea about the designs available and rates of different shops. Wisely select the product that you would love to buy and then you have to haggle. Make sure that you check the hallmark of purity before selecting the item.
You have to make the retailer lower the price of the product. Most of the retailers know that the customers will haggle and they have already increased the rates. Assure that you can make him reduce the rate by 25%. If haggling is not possible you should pay the price because some of the retailers might offer you are a decent discount.