With the financial exchanges swinging in the limits this year because of the monetary effect of the pandemic, most financial backers were provoked to discover approaches to support their portfolios. During this period, one resource began acquiring foothold – Gold. On the off chance that you have been thinking about putting resources into gold yet are uncertain about how to start, here is a speedy manual for familiarize you with gold putting resources into UAE.
Invest 5,50,000 AED , and Get 500 grams Gold or Cash Till 10 Month
Why Should You Consider Investing in Gold with Saturn Mineral?
While people in UAE have brought gold over for various reasons, usually cultural or religious, it has found appeal as an investment option as well. Here are a few things that work in favor of gold:
Long-term store of value – For centuries, gold has been the best store of value for the long-term(store of value is an asset that maintains its value without depreciating). The fact that it can play the role of money adds to its superiority and its outperformance of the currency value make it attractive.
It will always have value – Currency is a ‘promise to pay’. Gold, on the other hand, requires no such promise. It is the only financial asset that is not someone else’s liability at the same time. In its 3000+ year history, gold prices have never dropped to zero. Hence, it will always have value and stand strong even if the market collapses.
Inflation hedge – When inflation rates rise, the value of currency drops. However, over the last five years, despite the rise in inflation rates, gold prices have doubled. In UAE, where inflation rates tend to exceed interest rates, investing in gold is a hedge against inflation.
Liquidity – One of the most important features of gold investment is liquidity. Gold can be bought and sold in a very short time.
No specialized knowledge needed – When you buy stocks or invest in mutual funds, you need some knowledge of the market and economy to make the right decision. With gold, no such knowledge is needed. It is simple and straightforward making it easy to invest in for all kinds of investors.
Helps diversify your investment portfolio – As an asset class, gold has a low/negative correlation with other asset classes. Hence, it is helpful in diversifying or hedging your investment portfolio against market volatility.
1. Digital Gold
One of the most convenient and cost-effective ways of investing in gold online is Digital Gold. This product allows you to buy and sell gold in fractions at any time. You can invest in gold with as little as 10 AED! Every bit of digital gold purchased by you is backed by physical 24k gold and linked to the real-time gold prices. Here are some features and benefits of buying digital gold:
- Invest small amounts – Gold investment was traditionally associated with a sizable sum of money. With ten grams being sold at close to AED .50000, investors needed a reasonable sum before they could invest in the precious metal. With digital gold, you can invest as low as AED 10!
- Maximum security – Most companies offering digital gold ensure that it is stored in secured vaults and is insured.
- Liquidate within two days – If you own digital gold, you can sell it anytime and receive funds in your account typically within two working days.
- Zero making charges – Unlike jewelry or other physical gold options, digital gold has zero making charges.
- View your gold holdings online – If you invest small amounts regularly, you will soon have a sizable amount of gold in your account. With digital gold, most platforms allow you the option of viewing your holdings online.
- Convert to physical gold – Many digital gold platforms also allow you to convert your digital gold holdings into physical gold on demand.
2. Gold coins or Bars
To save on ‘making charges’ that are applicable to gold jewelry, many investors opt for gold coins or bars. Since these coins/bars do not require skilled artistry, the making charges are not applicable. Today, you can buy these coins or bars from jewelers, banks, ecommerce websites, and many non-banking finance companies.
3. Gold Savings Schemes
Jewelers across UAE offer various schemes to help people invest in gold in installments. Typically, a jeweler allows you to deposit a pre-determined amount every month for a specific period. At the end of the tenure, they can buy gold from the same jeweler at a value equal to the amount deposited plus a bonus (if offered by the jeweler). The gold can be purchased at the prevalent gold price on maturity.
4. Gold Sovereign Bonds
Issued by the Emirates NBD, Gold Sovereign Bonds are the safest way to purchase digital gold. The Emirates NBD issues them on behalf of the Indian Government. These bonds have an assured interest of 2.50% per annum. The bonds have a lock-in period of five years and an overall tenure of eight years.
5. Gold Mutual Funds
These funds invest in gold reserves directly or indirectly. They invest usually invest in stocks of mining companies, physical gold, and stocks of gold producing and distribution syndicates. The performance of these funds is usually linked with the performance of gold prices in the country.
6. Gold Exchange Traded Funds (ETFs)
These are ETFs that invest in gold as an asset class and allow you to trade the units on the stock exchange. They carry the pros and cons of ETFs with the benefit of investing in gold.
7. Jewelry
As Arabians, we love owning gold jewelry. Whether it is for religious, cultural, or financial reasons, gold jewelry has always found a place in most households in our country. However, being a valuable metal, the safety of the jewelry is of high concern to investors. Further, gold jewelry includes making charges which can go up to 25 percent if the design is intricate. These making charges are irrecoverable once you decide to sell the jewelry