Buying Gold in Dubai

Discussion in 'Travel' started by dropshortjock, May 13, 2013.

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  1. Any ARRSERS who have spent any time in Dubai, I'd be grateful if you could share your knowledge!

    I'm currently in Dubai for roughly 4 days a month and, whilst prices have gone up, I have been advised by a couple of people to look out for gold at good prices. The airport is clearly out, but if any of you do know of places/soukhs where you can haggle and get gold at a reasonable price I thank you.

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  2. Without being glib, the old and new Gold Souks are your best bet. But you need to spend a good couple of days to make sure you're getting a really good price, as well as being willing to walk away. Dubai is no longer a 'bargain' by any stretch of the imagination.
  3. There are two gold souks in Dubai, the old one, near the creek, and a new one in a modern shopping centre. Both seemed fairly equal in price to me, but you get a better experience in the old souk. Prices are higher at the shops with the best positions, so explore, but all are open to bargaining. My experience of the vendors is that they are very trustworthy.
  4. PM BiscuitsAB and join the investment club.
  5. sirbhp

    sirbhp LE Book Reviewer

    thats because we have trading standards officers and they have the blokes who cut off yer hands .
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  6. TheresaMay

    TheresaMay LE Moderator DirtyBAT

    If you go to 'old Dubai' and across the water on one of the gondolas driven by the chogies, there's the gold & spice markets to explore (and easy to get lost in) - there's literally hundreds of shops selling it off reels.

    And you can barter like **** too. In fact, you don't even have to ask - one glance and they'll be persuading you with their sales patter.

    Once you've got your gold at knock down price, treat yourself to a nice pack of saffron.

    And a hooka-pipe.

    Edit: I think I'm talking about the same one Joe Private mentioned by the sounds of it...
  7. When I was in Dharan (admitedly years ago) All the gold shops displayed the current gold price per ounce in US dollars. So when you picked out a chain, it was weighed and then you haggled over what you thought the workmanship was worth. If you bought an ingot you didn't have much haggle room as the weight basically set the price. Also remember most of the gold is of a higher carrat than you would normally buy in Europe which makes the jewelry very soft and easily damaged.
    Having said that, the shop keepers are always open for a good haggle, so put on your best life of brian sack and as has been said be prepared to walk away.
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  8. Its been years since I was in Dubai, but you will notice the price is based much on the weight of the jewelry rather than its fine workmanship. If buying cast small bits such as 10 tola local gold assume its at best 90% gold regardless of whats written on it. 10 tola if my memory serves me right is 116 gram. I lost out on reselling and the buyer was an honest gent. He also mentioned the stuff marked as Swiss Gold was often less than the markings on the bar. As to future price; there was an article in the Institute of Petroleum magazine about two years back showing the relationship of gold to the price of oil over a long period-I think it was 30 years or so. A point made was when the markets were stable gold was priced at 10 to 12 times the price of a barrel of oil (take your pick for an average of oil ie Tapas, Brent, Texas light etc). When the difference was bigger than that ratio expect a big price adjustment. Oil is fairly consistent over a period of months as its a 'must have' commodity. If it goes up in price you still have to buy it and the petrol made from it. Gold is not a 'must have' and certainly not in short supply. There is plenty held above ground with agreements between national reserves not to flood the market. The electronic industry is the biggest users of gold with personal users and hoarders making a small part of its market.
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  9. If you're buying it for an investment be careful. You may be better to wait a couple of months and then buy krugerrands.
  10. Why is this?
  11. Because the price is dropping and should drop more.
    I spent the first dozen years of this century buying and selling commodities, using my own money, which ensures total concentration on the subject. To give you an idea I bought nickel then nine months later sold it, I then bought gold, hung onto it for three months then went back to nickel. Then sold that and moved to copper.
    I had other business interests as well, but all I needed for the commodities was a computer and various newspapers, and gritted teeth every time I bought and sold.
    I still do it today, only with my own money and still concentrate just as hard. I thus have a modicum of experience in the field.
    Do you want to buy for investment or for wearing? If for investment wait a bit then buy either kruggerrands or ingots. Do it properly, sort out your taxation issues first, set up a company, buy in a low tax jurisdiction, keep it there and sell there. Buying kruggerrands or ingots is a business, don't get attached to them, you only make a profit when you sell. Don't be greedy and hang on too long. The first profit is usually the best profit and sell while the market is still rising.
    Hope that helps.
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  12. It certainly does. I am looking at buying as an investment, so far I have a krugarrand, a small 1 gram bullion bar, a tiny nugget (all bought ages ago) and about 300 quid in bullionvault which I bought last year and started making a loss a few months later. So its all small time pish.
    As I pass through Dubai every now and again (next in one months time), I thought I might pop down to the gold platz and have a look at what they have.