Complete Guide to Buying Gold in Dubai
Dubai is a global destination for buying gold, as it is unofficially dubbed “the City of Gold.” Home to the world’s biggest gold market, there are regulatory standards that guarantee any gold purchase’s authenticity. We’ll show you a few tricks to get the best quality
- Find Out the Gold Rate in the UAE
Gold in the UAE behaves like stocks, with prices fluctuating daily. So, it’s advisable to know the current price before going to the gold market. This can help you to negotiate better with vendors. You can view the prices online by checking different websites that publish rates. You may as well compare if gold is cheaper here than places like Mexico, UK or USA.
Then, you will find a price table outside most shops in the gold markets. Although these shops have near-uniform prices, they vary depending on labor fees and designs. So, you can bargain or pick the prices that work best for you.
- Understand Gold Types Before Buying
Gold is sold in Dubai by karats and weight, and knowing how karats work is critical. Without the proper knowledge, a non-professional buyer may pay higher than the regular gold prices. Karats measure the quality of any piece of gold. The higher the karat, the purer the gold. For example, a bar of 24-karat gold is pure gold with no additives.
On the flip side, a bar of 12-karat gold is gold mixed with another metal. Also, note that pure gold is soft and only hardens when mixed with other metals like silver or copper. It even comes in different colors, which explains the percentages and types of alloy mixed with it.
- Check for Warranties and After-Sale Services
Gold is an expensive item to buy, and you want your piece of jewelry to last a lifetime. Quality gold maintains its sheen and doesn’t easily get damaged or broken. However, it can damage due to accidents, improper storage, or wear and tear.
To protect yourself in situations like these, check for seller warranties. Some vendors offer free repair services on gold purchases for up to a year. Perks like this can influence your purchasing choice.
- Buy Only What You Can Carry Back
Each country has rules and allowances for how much gold people can fly with and bring into the country. So, verify this information before going to the gold market, so it guides your purchases. It is best to check with the customs website of your country of residence for guidance. This can help you to avoid paying high taxes or fines.
- Check for Hallmark Markings
Although you don’t have to worry about purity when buying gold, you still need to ensure it is certified. The Dubai Central Laboratories Department (DCLD) certifies gold by issuing a Bareeq Certification. All gold jewelry has markings that can help you verify what you’re buying, so check for these inscriptions. Gold vendors are mandated by Dubai local laws to have the gold purity hallmark, so ask to see it.
- Know the Best Times to Buy
To get the best deals, do your shopping on weekends, especially Saturdays and Sundays. Prices are stable during that time, as gold doesn’t trade on the international exchange until Mondays at 2 pm. So, there’s a good chance that you’ll get a good deal.
Alternatively, you can plan your shopping around the Dubai Summer Surprises or Shopping Festival events. The Shopping Festival is held yearly, from December to January, while the Summer Surprises event runs from June through August. You’re guaranteed a good deal if you buy during these periods.
- Bargain and Bargain Again
Bargaining is a skill that comes in handy when shopping for gold in Dubai. Gold sellers expect you to haggle, so try to barter 25% off the stated price. Who knows? You may get lucky, as they often have price buffers for situations like these. You can also haggle according to the money you have. Some sellers may ask how much you can afford just to sell off a piece. However, if you both cannot reach a bargain, walk away and move on to the next seller.
Remember that the number of pieces you buy can affect your haggling chances. For example, buying more pieces gives you a stronger hand, but haggling becomes harder if you buy intricate designs.
- Pay Cash to Cut Fees
Although most shops in the Dubai gold markets have advanced credit card machines, it isn’t the best payment option. The reason is that they charge a percentage (between 1% to 2%) of the amount on transaction fees. So, it’s better to go along with cash to save more money. However, if carrying cash around makes you uncomfortable, you can ask for a waiver on credit card machine charges.
- Explore Stores
Don’t settle for the first piece of gold jewelry you see. Shop around and explore other vendors, as you have hundreds of retailers to pick from. Remember that shops located in hidden spots that are not easily accessible offer better rates. This is because there’s not much foot traffic passing through those areas. So, locate the narrow alleys and go to them for better deals, but be mindful of the quality certification.
- Trade in Your Old Gold
Gold vendors in Dubai are often willing to exchange or buy old gold. This can help cut costs when upgrading your gold collection or buying more gold. However, they would want proof that your jewelry is authentic, so go along with any certificates you have.
- Ask for an Invoice or Receipt
Getting an invoice or receipt for your purchase serves as proof of sale. It comes in handy if any issue arises or you want to sell to a third party. Some vendors may try to convince you against getting a receipt. But we recommend insisting on a receipt for every gold item you buy.
Conclusion
In Dubai, all that glitters is gold― literally! It doubles as good jewelry and an inflation-proof investment option. However, make sure you do adequate research before buying gold, and shop during the festive seasons for good deals. We hope the tips in the guide help you to bargain and get the best value for your money.
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