Dubai’s richness in terms of gold trade is not an enigma. Anybody will endorse the fact that the number of traders trading gold coins or jewelry here, or dealers dealing in gold bars in Dubai, is exceedingly higher than any other place in the world. The credit to this exuberance, of course, goes to the liberal trade policies of the local government and the functionality of the Dubai Multi Commodities Centre. However, with the idea to buy gold bars in Dubai, both prospects, as well as the risks, are associated. You must be familiar with both sides of the “coin”.
What is Gold Bullion?
Gold Bullion is the other name of gold bars and it is also known as a gold ingot. Gold bullion or bar, comprising refined metallic gold, becomes suitable for trade after it is manufactured by the producer adhering to the stipulated standards of labeling, production, and purity.
Gold Ingots are gold bars available in a bigger size. They are obtained when molten metal is poured in molds. You will see all forms of gold being predominantly sold and traded in Dubai.
Trading Gold Bars – Prospects
- Unlike other parts of the world, your investment is least affected by the premium – the cost you bear over and above a product’s original price. Be glad that in Dubai, many expenses like the refining cost, making charges and transportation are inclusive in the premium.
- Howsoever small or large your buying capacity or budget, you can think of investing in gold bars because of their extensive availability. You may choose gold bars from different weight alternates – right from 5g to 10 kg bars. The heavier you buy, the cheaper you get, thus leveraging more profit.
- You are not bound to invest in physical gold only you may opt for Digital Trading of the bullion! Dubai Gold and Commodities Exchange or DGCE has transparent policies for that.
Trading Gold Bars – Risks
- Despite stringent guidelines and close monitoring by the authorities, you cannot rule out the chances of buying counterfeit gold. Stay cautious, use the specified testing method and safeguard your investment.
- It is never enough when discussing the purity of gold. Instead, adopt the best and safest approach – of knowing the refinery where the gold you are buying has been manufactured. Experts hint you to go with renowned refineries as you can expect the highest level of purity from them.
- When trading online, check the buyback policy of the online seller. This is an extra attribute to your money and extra power to your investment.