FD

Why Gold?

Gold is one of the most popular financial tools of investment. It is the “Safe Haven” asset especially during political or economic instability. Gold has maintained its purchasing power over the centuries, and acted as the store of value.

Why Gold?

The chart represents the appreciation of Gold value over the past 30 years until the year 2020. It  clearly shows the strong performance of gold and the capital appreciation it provided over the long-term.

Options for investing in Gold within the UAE:

Physical Gold

Take me there

Invest in
Gold ETFs

Take me there

Buy, store
and sell
Gold online

Take me there

Gold saving
certificates
from UAE banks

Take me there

01. Physical Gold:

Unlike most other investments, buying physical Gold gives many people peace of mind. It also allows them to keep their asset outside the banking system.

Pros:

  • No maintenance and carrying cost
  • Cannot be hacked nor erased

Cons:

  • Difficulty of carrying when traveling with big quantity
  • Risk of getting robbed when kept at home

02.Invest in Gold ETFs:

Before you view this option, if you are not familiar with ETFs, you can check out our ETFs guide

An exchange-traded fund (ETF) is a financial instrument that holds a basket of different investments like bonds, stocks, commodities, and other securities.

Gold ETFs give the investor the exposure to price movement without having to buy physical gold.

There are some famous gold ETF out there such as SPDR Gold Trust $GLD and iShares Gold Trust $IAU.

If you want to invest in Gold ETFs, you can open a brokerage account and start investing.

We have reviewed multiple brokers and came up with our shortlist. Check out our best brokers’ review.

03.Buy, store and sell Gold online:

Here’s another flexible option, you can open a gold trading account where you can buy, hold and sell your precious metals. Usually, these accounts give you the choice to redeem your purchased Gold and ask for physical delivery at any time.

There are multiple companies where you can open gold trading accounts. Usually, they offer you a demo account to get familiar with the trading platform before starting your live account.

Here’s one of the gold trading company based in the UAE:

NBH National Bullion House Company:

Few local companies offer some accounts where you can buy and sell Gold online. You can also redeem your gold purchases at any point in time, and the company will deliver the physical Gold to your doorstep.

When buying Gold online, you can keep your purchased metals as long as you wish for free. The company doesn’t charge an overnight fee.

How
it
works

  • Open a gold trading account and buy one or more of the available metals on the platform.

  • Sell & withdraw your money anytime you want.
    Or redeem your physical gold to be delivered

04. Gold trading accounts in UAE banks:

UAE banks made investing in gold easy. You can open a Gold account in one of the banks which offers the gold investment account and easily transfer the fund to it from any other account. The banks allow you to purchase Gold as per the current international rate in addition to the bank fees.

Pros:

  • Fast and simple
  • Ability to buy fractional amounts
  • Ability to cash out your money fast

Cons:

  • Bank fees and spreads can be slightly high
  • Need to open an account in the same bank

Subscribe to stay informed

Subscribe to our newsletter and recieve the latest
personal finance topics