UAE is a very famous market for gold buying and selling and attracts investors for making their profits. It is the world’s most important destination in terms of valuable gold. That’s why the capital of UAE, Dubai is called as ‘ City of Gold.’
Investing in gold depends on a lot of external factors which continuously fluctuate its prices. Before buying gold, one should look into the factors worldwide which affect the gold rate in uae.
Today Gold Rate in UAE
|Type||Gold Rate in UAE (Dubai)
|24 Carat||aed 219.00|
|22 Carat||aed 205.50
|21 Carat||aed 196.25|
The prices mentioned above are subjected to changes.
Impact of Covid-19 on Gold
In these crucial times of pandemic, the gold rate is still higher marking an increase in prices recorded in seven years. In this time, when all other markets are collapsing the sole market which is trustworthy of investing is gold. It is better to buy gold than to have cash in hand for longer time.
The investors have benefited from selling gold to Gold Price UAE serves the purpose of living in times of sudden job loss or salary deductions. In this unstable situation when people start panic buying and the finances are stretched, the gold investment is a safer option for cash inflow. However, for the jewelers, it is a hard time as the gold jewelry buying is reduced incredibly.
How is Gold Rate in UAE linked to US Dollar?
The gold rate is calculated internationally in US dollars. There is an inverse relationship of gold rate with the dollar rate. The gold price falls when the dollar is strengthened and gold price goes up when the dollar is weakened.
Important factors controlling Gold Rate in UAE
The gold price in UAE is controlled by a lot of national and international factor, including:
Tax and Import Duties
Since gold is naturally produced in a few nations, others only import gold. Hence, the fluctuations in tax rate and import duties directly influence the gold rate.
Central Bank Reserves
The Central Bank reserve is calculated in exchange of the gold reserve in the country to circulate the paper currency. Many European countries and US considered gold as a reserve for the purpose. The recent impact in loss of buying gold also affected the gold rates in central banks.
Demand for Gold
China, India, and US are main consumers of gold. Their economic growth and investment preferences directly affect the gold rate.
Safer Investment Option
Many people think gold is a safe investment option that can save you in hard times of inflation, currency fall, deflation, and unemployment/recession.
What are The Measuring Units for Gold across the World?
Gold is measured in different measurement units across the world and hence its price varies. Different countries have criteria for measuring gold which differs the measuring units and affects the gold trading in the world.
Gold is measured in the following measuring units in international markets for gold trading:
|Troy Ounce(oz t)||It is commonly used to measure the mass of precious metals such as gold. 1 troy ounce = 31.1034768 grams|
|Pennyweight(dwt)||It is a measure of mass that is mainly used for measuring precious metals in North America. 1 dwt = 1.55517384 grams|
|Gram(g)||It is a metric system unit of mass. 1 gram = 0.001 kilogram|
|Tola||It is a traditional South Asian unit of mass. It is defined as a 3/8 troy ounce. 1 tola = 11.6638 grams (approx.)|
|Tael/Tahil||It is commonly used in Hong Kong, Chinese, Southeast Asia, etc. It equals to about 50 grams or 1.607 troy ounces. 1 tael = 50 grams (in China)1 tael = 37.799364167 grams (in Hong Kong)1 tael = 37.5 grams (in Japan)|
|Baht||It is the foremost unit of weight for gold used in Thailand. 1 Baht = 15.244 grams|
|Grain||It is the traditional unit of measurement and is based on the weight of a grain of wheat. 1 grain = 0.0648 grams|
What is the Difference Between 24K, 22K, 21K and 18K Gold in UAE ?
The foremost unit of measurement for gold is Karat. It determines the purity of gold. High karat refers to more purity of gold. The difference in purities of gold implies making different items of gold.
Let’s discuss the difference in different Karats of gold.
A 24 Karat Gold is considered 100% purest form of gold. It is solid gold without any mixing of metal in it. It is sold in the market mentioned as 99.9% pure. It’s color is bright yellow. It is most expensive in buying and selling 24K gold other than 22K or 21K. It’s soft and can easily be molded, that’s why it is not preferred in jewelry making. It is used in making bars, coins and also used in medical and electronic devices.
The high category gold jewelry is mostly of 22 Karat gold. It has 2 parts of metal such as silver, nickel, zinc, and other alloys mixed with 22 parts of gold. It is sold in the market as 91.67% pure gold. The alloys mixed in it hardens the texture of gold which is why it can be used in jewelry making because of its durability.
This category of gold has 87.5% of pure gold with a mixing of 12.5% of other metals.
The 18 Karat gold has 75% of gold which is mixed with 25% of other metals such as silver, copper, and other alloys. This one is also used in jewelry making but common in stone studded and other diamond jewelry. It is available at an affordable price compared to 22Kor 24K gold.
How Can The Purity of Gold Be Determined in UAE?
Disclaimer: The prices mentioned are updated continuously and are subject to changes.
The gold in UAE is retailed to maintain its purity of gold. The purity of gold is ensured by the DCLD – UAE Central Laboratories Department by giving awards to the retailer with a Bareeq Certification. How the gold purity is assessed is discussed below:
- Identifying the retailers’ compliance with the government and local rules and regulations.
- Identifying the quality control of gold and assurance.
- Identifying the reasonable labeling on the jewelry.
- The inspector reports the findings.
The DCLD awards voluntary certification upon inspection. Generally, the inspection is carried out thrice a year. Then a valid certification is awarded to stores with fair and true practicing of jewelry trading. There are many other methods to check the purity of gold :
Examine the Jewelry: Look at the jewelry closely to determines its purity. The reputable jewelry shop sellers, also stamp the pieces with its Karat. The jewelry item can be checked under a magnifying glass to identify the stamp for its purity.
Look for Bareeq Certification: All the renowned stores in UAE possess a Bareeq Certificate.
Approach a Jeweler: In case of any doubt in the purity of gold jewelry, you can always approach a legit jeweler to check for your jewelry.
Reasons to Consider Buying Gold Online
Here are 5 reasons why buying gold online is a good idea:
Sales Tax: Upon online purchasing of gold from a local seller, a sales tax is exempted.
Overstated Prices: The famous jewelry shops have a higher prices for gold due to high overhead costs, and hence, they cannot offer wholesale prices.
Convenience: Buying gold online is safe and convenient as you can look for multiple designs and check multiple stores and compare their prices before actually ordering them. You can also check seller reviews by customers for your satisfaction.
Competition: Digital market has a lot of competition due to its global accessibility. The online gold dealers have to adjust their prices to stand in the online marketplace for their international customers.
Quality: The best quality gold can be bought virtually which is difficult to inspect in the markets physically.
Is Gold a Smart Investment For Financial Growth in UAE?
Gold is a preferred investment for most people in uae for financial security despite its fluctuating prices. Customers not only look for jewelry pieces but also buy gold bars or coins for a smart investment mechanism.
- It is considered a good choice for saving as the resale value of gold is also good and can be bought or sold globally.
- In times of financial crisis, gold serves the purpose of safe investment options for people.
- The gold prices keep increasing at any time of the year and hence it can be exchanged for cash if it benefits you.
What Is The Price Difference in UAE for Gold Jewelry and Gold Biscuits or Raw Gold?
Raw gold or gold biscuits are available in the purest form which is 24K gold. Because pure gold is soft in nature and easily molded which is not appreciated for jewelry making. The gold jewelry pieces are usually made out of 22K or 18K gold which is more affordable. Hence, there is a difference in the prices of both.
Can Tourists Purchase Gold in UAE?
Gold has been an attraction for tourists for ages. Customers especially females want to purchase gold pieces from anywhere in the world for their uniqueness in different parts of the world. UAE is known as a paradise for gold buyers and commonly referred to as the ‘City of Gold’ because of the large amount of gold purchasing. Tourists are attracted to buying gold in UAE because of the lucrative prices.
Tourists can easily buy gold in UAE keeping in mind the limit set by the country. UAE has a set allowance for gold which can be brought back to the tourist’s county, both weight-wise and cost-wise.
Why is Gold Used in Electronic Products?
The pliability and unique physical properties of gold make it a suitable material to be used in electronic appliances. These properties are:
Gold has a high electrical conductivity.
Gold is devoid of tarnish and it does not corrode, as the other highly conductive metals do, such as silver and copper.
Due to its pliability and soft texture, gold can be easily plated into thin coatings or shaped into narrow wires.
What is the difference between Carat and Karat?
“Carat” is a measuring unit of mass. Normally, gemstones and diamonds are measured in carat and the higher value of carat increases the price of the stone. “Karat” is used to measure the purity of gold. The common Karat values in which gold is measured are 24K, 22K, 18K, and so on. The higher value of karat value makes the gold price higher.
Why does the gold rate fluctuate daily?
The gold rates are fluctuating daily due to economic and political factors involved which occur across the globe.
Why can’t jewelry pieces be made out of 24K gold?
Jewelry items or ornaments cannot be made out of 24K gold because of their soft texture and pliable nature. Being the purest form of gold makes it the softest and finest which allows gold to be ductile and malleable. Therefore, if used in any jewelry, 24K can easily be deformed from its shape and lose its original design of the ornament.
What factors should be considered before buying gold online in UAE?
The following factors are important before buying gold online:
- The company’s reputability
- Their security of safe storage
- Their customer dealing
- Their customer reviews online
- The policies of the company
- The delivery or any other hidden charges
- The positive history of the company
- Their moneyback or return policy
Why should Expats buy gold in UAE?
Few of the many reasons for Expats to buy gold in the UAE include:
- UAE has the very pure form of gold
- The gold rates in UAE are relatively cheaper
- There are wide design choices due to versatile gold designers in UAE
- The gold price in UAE follows international market rates
- There is a choice for bargaining in gold prices due to the wide availability