The Dubai gold market is a gold lover’s dream. Bargains can be had at greatly reduced prices as compared to American and European markets. The key is to know the market.
The Dubai gold market may never match heaven’s golden streets and thrones, but it’s about the closest match a gold bug will find on Earth. However, before booking a flight to Dubai, here are a few facts to consider before making the trip.
Dubai carries the monicker of “City of Gold,” and it’s well earned. Nearly everything sold in Dubai is solid gold. The gold is sold in 18 karat, 22 karat and 24 karat purity. The tourists who walk the streets in the City of Gold are there to buy the precious metal.
Prices are set according to the AED, which is the United Emirates Dirham. The gold dealers set the retail gold price once in the morning, and then again in the evening. What this means for gold buyers is that the price in the evening could be lower than in the morning. The opposite is also true; therefore, gold buyers should watch the market and time their buys accordingly.
Gold buyers will be looking at goods in the gold souk. Souk is an Arabic word that means traditional market. The gold souk consists of about 300 gold shops in Dubai’s commercial market. Most shops close down and take a break between 2pm and 5pm.
Gold buyers can look through about 25 tons of gold at any given time in the souk. These gold pieces consist mostly of jewelry although gold bars can also be found. Most jewelry will lean toward Arabic designs. However there are also plenty of pieces with Asian and Indian designs. The gold souk caters to its most likely buyers, and they are mostly Asians and Indians.
After the price of gold is set by the Dubai gold market dealers, they will add in the cost of the crafting or the production of each individual piece. Those pieces that are mass produced will likely show a lower price markup than a piece that is made by individual craftsmen.
Each piece will be priced by the purity of the gold in that particular piece. Buyers should look for the cost per gram that should be posted in the store. The cost added to each piece for its production can be easily calculated by knowing the price per gram.
The key to finding a gold bargain in Dubai is to resist impulse buying. That piece that was dazzling in the morning may not look so pretty in the evening. It pays to comparison shop. That means loading up with fortitude and determination to walk from shop to shop. Some pieces may be available for 20 percent less at another shop.
Haggle. Some of the markups can be steep, and shop owners expect customers to offer a price below the price marked. Tell the shop owner that you saw that piece for 30 percent less at a different shop. Buying a piece for 20 percent less than the marked price is common.
Buyers should ask for a certificate of purity with a description of the piece on an invoice. Customs may demand it on arrival at the airport. Use of a credit card may add to the purchase price of the gold. Remember, cash is king, and cash can persuade a buyer to sell at a reduced price.
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