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Buying Gold as an investment

Many investors see buying gold as a good long-term investment because it is a stable investment, is a great means of having a liquid and tangible asset at ones disposal and historically, it has appreciated in value over time. Moreover, many investors wish to invest in gold, because it has proven to be more stable than other investments over the years.

Since the times of the Persians, Muslims have seen value in buying gold as a sound investment. The fact that there is no prohibition under Islamic laws for Muslims to trade and invest in gold has made this as a popular investment instrument among Muslims, especially those living in Middle East. Besides, the fact that economies and money markets can be very volatile and subject to sudden downturns has made many investors turn to buying gold.

 

 

 

 
 

Investors looking to buy gold as an investment can do so either via the open global gold markets or buy way of purchasing gold itself. Buying Gold itself is more common in the Middle Eastern countries, which have gold markets. Investors who are interested in buying gold as an investment, but who do not need to have the physical comfort of the gold’s actual presence, can purchase gold on the open market. 

Gold can be purchased on the global markets either as gold certificates or gold exchange-traded funds. Purchasing gold exchange-traded funds is very similar to buying stocks and shares on any stock exchange and is a very easy way for an investor to have an investment in gold without actually having the gold physically in your presence. Gold certificates allow investors to buy and sell gold on a commodities market.

USGoldBuyers.com, BlanchardOnline.com, GoldOnline.com are sources you can consider to use for information on buying and selling gold. As in any type of investment, you should explore the market conditions fully as well as validate the sources before making any type of investments.

Currently the Perth Mint Certificate Program is the only government guaranteed gold certificate program in the world. Buying gold as an investment in the open global markets is purchased using the market spot trading price.

Stability and historical appreciation of gold

Traditionally, the spot price of gold is given in United States Dollars per ounce (US$ per oz.). Since January 1975, the spot price per ounce of gold has appreciated from US$175 per ounce to US$685 per ounce – making gold one of the most robust and continuously profitable investments available in the markets. The spot price of gold traditionally does best in times of uncertainty – such as economic crisis or war.  Proving this theory, the highest price gold has ever reached was during the oil crisis of the mid 1970s, when the spot price per ounce exceeded $750 per ounce. Since 1975, gold has never traded lower than US$100 per ounce.

Dubai Gold Markets

Dubai is considered a main hub for purchasing gold. Following are some of the shops that sell gold - \

  • Damas - City Centre (04 2953848)

  • Gold and Diamond Park (04 3477788)

  • Graff - Wafi City (04 3244221)

  • Tiffany & Co. - City Centre (04 2953884)

  • Abdulla Jewellery (03-7650904)

  • Al Fardan Jewellery (03-7641150)


 

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