In this article, we have briefly discussed the reasons that make gold prices in Dubai so low. To know more, please keep reading.
Dubai is also known as a ‘City of Gold’ as it flourishes in an international market and is renowned worldwide. From the sparkling shops in the market to air-conditioned boutiques in the high-class malls, numerous options are available for the Gold Admirers in Dubai.
The gold trading in Dubai was started in the early 1900s, which then flourished into a Gold Souk. Currently, the city is recognized as a hub of gold trading with its gold refineries, gold-making industries, and various gold jewellers.
Moreover, people buy gold bars, biscuits, and other ornaments to send as gifts or keep as investments or savings. Typically, these ornaments are made up of pure gold, i.e., 24 karats, and can resale easily at the existing gold rate.
For the Gold buyers, Dubai fulfils all the requirements in terms of quality, variety, authenticity, and, most importantly, price. Buyers from all over the world prefer buying from the Dubai Gold market because of its strict conduct of transparency.
In Dubai, it is easy to get hands-on gold, whether it is 18 karats or 24 karats, while 24 karats are the purest form of gold. Generally, the wedding rings and studded jewellery is made up of 18 karats; however, bangles, chains, classic rings, and earrings are manufactured with 21 karats gold.
The Gold market of Dubai offers its buyer numerous designs and styles depending on the trends and tastes of the buyers. Whether you require a piece of traditional jewellery or casual ones, all types are easily available in the Dubai Gold market. Currently, the jewellers in Dubai are manufacturing lightweight traditional heritage jewellery due to its increasing demand.
Typically, the common designs of rings, earrings, necklaces, and bangles are imported from different parts of India, Italy, Turkey, and some parts of the Arab World. However, less typical and less technical jewellery items are imported from Malaysia and Singapore. However, many shopkeepers offer customized jewellery making services to cater to the customers’ tastes.
Not only jewellery pieces but other gold ornaments are also used in households for decorative purposes such as crowns, sword hilts, and shields. High authorities regulate all the maintenance of gold jewellery items and ornaments to ensure a high-quality gold supply. Many gold jewellery suppliers, such as Al Romaizan Gold & Jewellery, offer great deals for people looking for gold jewellery and accessories. They have been working in this industry since 1953 and assure the supply of quality products.
Over the decade, the gold prices in Dubai have increased significantly. Though, it was at least prices in 2016 while since then the prices are increasingly uniformly with time.
Currently, 1 gram of gold price is about 237.25 AED, while the price of the 10 grams of gold in Dubai is 2372.50 AED for 24 karats gold. On the other hand, 1 gram gold of 22 karats gold is 222.75 AED, while 10 grams cost 2227.50 AED.
Furthermore, the prices of gold have increased rapidly in the last week due to increased tension between Russia and Ukraine, major commodity price increases increasing the inflation rate, and the US increasing the interest rate according to the rule of March 2022.
Why are Gold Prices Low in Dubai?
Undoubtedly, the gold in Dubai is the cheapest compared with the other parts of the world. Though the taxes have been added to every purchase of gold since 2018 still, the prices are far lesser than in other nations.
Moreover, visitors and tourists can get a big advantage from purchasing gold from Dubai as they are eligible for VAT refunds on every purchase. Investing in gold is a wise decision, especially if you plan to add some extra security to your assets.
Here is proof of why Dubai’s gold is cheaper than other cities and countries. There was a time in November 2019 when 1 gram of gold rate Dubai was 166.75 AED, while at the same moment in the city of Mumbai, India, the price of 1 gram of gold was about Rs. 3,715. These rupees are approximately equal to 190 AED. Therefore, it can be estimated that when you buy gold from Dubai, it is around 15% less expensive than buying the same gold from any other place.
The gold rate difference is not limited to just India and Dubai; it can be observed in different parts of the world. Every year, many people visit Dubai to buy less expensive and more beautiful gold jewellery. Not only it is cheaper, but also it has the quality and authenticity which can’t be observed anywhere else. People can blindly trust the quality and authenticity of Dubai gold.
Why is the Jewellery Expensive?
Despite there is being no additional taxes and charges for the raw gold and gold biscuits and bars, then why the gold jewellery is more expensive? The gold jewellery imported from different parts of the world comes with an additional 5% of duty tax. This tax is applicable on all jewellery items and ornaments as well.
However, even with all these additional taxes on gold jewellery still the prices are lesser when compared with other parts of the world. It is very economical to buy jewellery from Dubai, provided the gold is pure and bought from an authentic store.
Why is Gold Measured in Karat?
Karat, also spelled as Carat, is the unit for measuring the fineness and purity of gold. Technically, one gold karat is 1 part out of 24 parts of gold or 4.1667 % of the entire gold’ purity.
Therefore, it is said that it is 16 karat gold, which means its 16 parts of gold and the rest of the 18 parts are alloy; however, in 24 karats gold, there’s no alloy; only gold is present.
Reasons to Buy Gold from Dubai
If you are planning to buy gold, you prefer to buy it from Dubai as there are 804 registered shops in Dubai for selling gold. However, there are many other reasons as well for buying gold from Dubai.
1. Pure Gold
While buying gold from Dubai, you shouldn’t be worried about whether it is a pure form of gold or not. All the gold sold in Dubai is regulated by the higher authorities to ensure its authenticity.
Moreover, all the store owners are bound to hold the hallmark of gold’s purity and show it to their customers on request. A hallmark is a certificate provided by the government to ensure the certification of a shop for selling gold.
2. Plenty of Options
Another main reason to buy gold from Dubai is there are ample options for the buyers to look for. Numerous brands and merchandise are operating in Dubai, offering beautiful casual wear and traditional ones as well.
Regardless of which Dubai market you visit for jewellery shopping, all of them have numerous options and a variety of beautiful designs to ensure the customer gets according to their taste.
3. The Prices Follow International Rates
For every gold store in Dubai, the shop owners are bound to offer the same gold rates according to international marketing standards. The only increase and decrease in prices are caused by the fluctuation in stocks. So make sure to check the rates before going f shopping.
4. Feel Free to Bargain
One of the major reasons for buying gold from Dubai is you can have the leverage to bargain with a shopkeeper. Though you cannot negotiate with the gold rate but making charges can always be altered.
Making charges vary depending on the gold ornaments you have bought. Typically, the piece with webbed work or more gems is costly, while simple pieces have less making costs.
How are Gold Prices Set?
According to the gold dealers, the gold prices are fixed and based on the dynamic of international market prices, which usually fluctuate every second. Moreover, the prices available on websites online are applicable for online selling and buying. While for physical buying of gold, the price is fixed by the renowned gold dealers, including their buying costs.
Typically, the retail prices of Dubai gold are decided by the Dubai Gold & Jewellery Group under the influence of the Consumer Protection of Dubai Economic Department. These prices are based on fluctuations in the international market. Sometimes, these prices are changed 3 times a day.
How is it Safe to Invest in Dubai Gold?
Furthermore, buying a gold insurance policy is also cheaper than investing in any other stock in the world. With the minimum import duty on raw gold, it is easy to import it to any part of the world. Major countries where the gold is imported are India, Singapore, Malaysia, Bahrain, and Italy. However, the jewellery of Spain and Turkey is also getting popular these days due to their simple and elegant designs.
Subsequently, the transparent economy of Dubai has made it the safest place for gold trading and business. Since Dubai is a major transit destination for many travellers, they love to buy gold from there.
If you are planning to buy jewellery from Dubai for daily wearing, traditional wearing, or investment purposes, Dubai is the best place to buy it from. Alternatively, you can also buy it from experienced sellers like Al Romaizan Gold & Jewellery.
With years of experience in the industry, they understand how to satisfy the taste of customers and deliver the best product. They have around 50 shops in UAE and 200+ around the region. They are available online and on social media to assist customers anytime. They are committed to delivering the best quality services to their clients.
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