Disclaimer: The gold rates are subject to changes almost daily globally including in the UAE.
United Arab Emirates is the hub spot of gold trading in the whole world and it is indeed the most valuable destination for any gold investors looking to maximize their profits. Just like other emirates such as Dubai and Sharjah, Abu Dhabi is also home to traders of gold jewelry and coin, bullion dealers, gold refineries, etc.
Many people consider buying gold from Abu Dhabi and other emirates due to their low-tax environment and the presence of a large number of gold dealers selling the purest gold at a low profit margin. Thus, one can find the cheap gold rate in Abu Dhabi as well as other Emirates when compared to other countries.
The first and foremost step to invest in precious metal is to find out if the gold price in Abu Dhabi is in your favor or not. Just like any other part of the world, the gold rate in Abu Dhabi is majorly affected by several factors. As a result, it keeps on changing almost every day.
The entire world is fighting against the novel coronavirus that has affected millions of people all around the globe. Most of the countries have declared a lockdown in order to prevent the spread of coronavirus disease. This lockdown has put a temporary pause to almost all of the economic activities thereby affecting economies as well as common people. Due to increased economic crises and led to a crash in worldwide stock markets, gold rates in Abu Dhabi has increased significantly. They are at 7 year highs and are set to go ever higher in the coming months considering the current economic situation of the UAE and the whole world.
The present gold rates in Abu Dhabi are even higher since they jumped from around AED 175.10 per gram to approximately AED 207.75 per gram within a very short span of time.
Although the physical demand for the yellow metal has dropped to its worst level during the coronavirus pandemic nationwide lockdown, the rate of gold has seen a significant surge in the last few months. Demand is majored through various factors which include buyer confidence, expectation of discretionary spending powers, and also expectations of future income levels. And all of these factors are badly hit hard by the coronavirus pandemic. As uncertainties continue to appear over worldwide economic growth in the mid of series of event from the beginning of this year, industry experts expected the gold rate in Abu Dhabi can go much higher in the next few months.
How is the Gold Price in Abu Dhabi Affected by Changes in the US Dollar?
Internationally, the rate of gold is noted in US dollars (USD). The gold rate tends to show an inverse relationship with the US dollar. Meaning that when the US dollar strengthens, the gold rate in Abu Dhabi fall and whenever the US dollar weakens, the rate of gold rise.
The gold rate is not steady as it keeps on fluctuating on a daily basis. Today’s gold rate may differ from yesterday’s gold price owing to a few significant factors that have a great influence on the increase or decrease of gold price in Abu Dhabi. Some of the key factors are mentioned below:
Gold, due to its steady characteristics as compared to currency, it holds a high value and it is utilized to hedge inflation. The reason being, investors and customers prefer to opt for gold instead of currency. It ultimately results in an increase in demand for gold when inflation is high. Thus, the gold rate also tends to increase with the high demand for gold among customers and investors.
The gold rate in Abu Dhabi is predominantly dependent on the global prices of this precious metal. Any global movement in the rate of gold significantly affects the rate of gold in Abu Dhabi. And the city is one of the largest importers of gold so whenever there is even a minute change in the metal’s global rate, the import values also change accordingly.
Just like all other products and services, demand is one of the key reasons why the gold price in Abu Dhabi is likely to change. So, when the gold supply remains constant and the demand for gold rises especially during festivals like Diwali and wedding season, the gold rate in Abu Dhabi is bound to rise.
Global Economic Stability
Gold rates usually increase during times of economic instability since this precious metal is one of the safest assets that people prefer to move their money out of riskier assets into gold. While other assets bear the risk of being devalued, gold which has significantly high liquidity continues to hold its great value even during times of economic instability.
Gold Production Costs
Mining companies increase gold rates at times on the basis of production costs. Well, its effects reflected in the rate of gold that is imported in Abu Dhabi.
What Are Measuring Units for Gold Across The Globe?
The gold rate differs from the measurement unit. In the market for gold, every country has different rules and measurement units for gold. Following are the most commonly used gold measuring units across the world:
1. Gram (g)
It is a metric system for the unit of mass.
1 gram = 0.001 kilogram
2. Troy Ounce (oz t)
This measurement unit is widely used to measure the mass of precious metals like gold.
1 Troy ounce= 31.1034768 grams
Tola is a traditional South Asian measurement unit and it is a unit of the British Indian weight system.
1 Tola = 11.6638 grams (approximately)
4. Pennyweight (dwt)
It is a unit of mass and is commonly utilized for measuring precious metals in the North American region.
1 dwt = 1.55517384 grams
5. Tael (or tahil)
It is widely used for measuring gold in the China, South-East Asia, Hong Kong, and more.
In China, 1 tael = 50 grams
In Japan, 1 tael = 37.5 grams
In Hong Kong, 1 tael = 37.799364167 grams
It is used for measuring precious metals in Thailand.
1 Baht = 15.244 grams
This is a traditional gold measurement unit that is dependent on the weight of one grain of wheat. It is the smallest unit of weight in the apothecaries, avoirdupois, and troy systems
1 grain = 0.0648 grams
Difference between 24K, 22K, 18K Gold in Abu Dhabi
The purity or weight of gold is measured in karat. High karat gold simply indicates the high purity of gold. There are different gold options are available in the market such as 24k, 22k, and 21K gold. Following are the key difference between 24k, 22k, and 21K gold:
A 24 karat gold is 100% pure gold and it doesn’t have any other metal mixed. Commonly, it is known as 99.9% pure gold and it has a distinct brighter yellow color. It is soft & pliable which is why it is not used in making regular forms of jewelry such as earrings, bangles, and necklace. However, the 24 karat gold is used to make bars, coins, and also it is used in medical and electronic devices.
The 22 karat gold is widely used for making jewelry. In 22 karat gold, 22 parts of the metal are gold while the other two consist of metals such as zinc, silver, nickel, and some other alloys. It is known as 91.67% pure gold. Mixing different alloys makes the gold’s texture harder and therefore jewelry becomes durable.
The 18 karat gold is made up of 75% gold and 25% of other metals like silver, copper, and other alloys. It is used to make diamond jewelry as well as stone studded jewelery. 18K gold is less expensive when compared to 22K and 24K gold.
What is the Difference between Gold Rate in Abu Dhabi and India?
Here is the gold rate in Abu Dhabi per gram and gold rate in India per gram:
Gold Rate in Abu Dhabi per gram
Gold Rate in India per gram
Disclaimer: The gold rates are subject to changes almost daily globally including the UAE.
There are several ways through which one can check the purity of gold and some of them are given below:
Check the Hallmark Stamp: Always keep in mind that pure gold always has a hallmark stamp. And reliable gold stores stamp the jewelry with the scale of purity. In order to check the gold’s purity, place the gold under a magnifying glass and then look for the hallmark stamp.
Try to Check with a Magnet: It is a well-known fact that pure gold is non-magnetic. So, if the gold pulls towards the magnet then it simply signifies that it is not a real gold.
Check if there is any discoloration: One can also check the gold’s purity by noticing if there is any discoloration or not. If the piece is only gold plated, it will eventually begin showing a different metal under it and also the color will be faded.
Tips to get a low Gold Price in Abu Dhabi
Know the Gold Types: To make the right decision, one should be aware of the different karats and weights of gold being sold in the market.
Know the Gold Price in Abu Dhabi: As said earlier, the rate of gold in Abu Dhabi changes almost every day. So before investing in gold, it is important to know the current price in the open market. If the current market price works in your favor then you can buy the gold accordingly.
Trying Haggling: It is good to learn the art of bargaining by studying the current market rate of gold.
Browse Around: Before investing in gold, it is wise to browse around and then compare all the different gold dealers to get the best gold rates.
Reasons to Buy Gold Online in Abu Dhabi
Following are some of the main reasons why one should buy gold online in Abu Dhabi:
Inflated Rates: Mortar gold dealers & standard brick have high gold rates and they cannot offer the wholesale rates. Even the best dealer who is selling gold offline won’t be able to compete with the online gold prices.
Sales Tax: One will have to incur sales tax costs when buying gold offline from the local dealer. But when buying gold online in Abu Dhabi, there is no tax included in the rates.
Competitiveness: We all know that the Internet is a worldwide market. Meaning that the international online gold dealers have a great competition which is why they have to set their gold rates accordingly. Untimely, there are high chances of availing the best gold rates when buying gold online.
Comparison: There are several gold dealers are available online in the market. One can easily compare different dealers based on their reviews and rates to find the best one as per their suitability.
Is Gold a Smart Investment For Financial Growth in Abu Dhabi?
Irrespective of the increase or decrease in the gold rate in Abu Dhabi, the gold shops are flooded with customers who are not looking for a piece of jewelry but also for a smart way to invest with the help of gold coins and bars.
Here are some of the main reasons why buying yellow metal is a smart investment for financial growth:
Smart Way to save: Purchasing yellow metal is a form of savings because its resale value is quite good. Gold investors can sell at any time and anywhere and expect good returns from it.
Safe Investment in the Long Run: It is one of the best and safest investment in UAE. One can buy gold and exchange it for cash during financial emergency times.
The Value Rises: The gold rate in Abu Dhabi has significantly increased in the past few years and it is expected that it will rise in the future too.
How is the Rate in Abu Dhabi for Gold Jewelry Different from Gold Biscuits or Raw Gold?
Gold biscuits or raw gold are made with the 24 karat gold which is 100% pure gold. It is soft & pliable which is why it is not used in making regular forms of jewelry. However, the gold jewelry is made out of 22 karat or 18 karat gold. Since 22k & 18k gold is less expensive as compared to the 100% pure gold i.e. 24k gold, there is a significant difference in the rates of gold jewelry and gold biscuits or raw gold.
Can Tourists Buy Gold in Abu Dhabi?
Gold has always been a precious metal and people from all across the globe want to buy and invest in it. When it comes to purchasing gold, Abu Dhabi is a paradise for gold buyers. People prefer buying gold from Abu Dhabi because of attractive prices and the availability of pure gold in the emirates.
Tourists can also buy gold in Abu Dhabi. However, the amount of gold that can be bought solely depends on the country of the buyer’s residence. Since each country has a pre-determined allowance on how much gold can be brought back cost-wise as well as weight-wise.
Why is Gold Used in Electronic Products?
The physical properties of yellow metal make it the ultimate material to utilize in a wide range of electronic products. Following are the physical properties of gold:
It has a very high electrical conductivity.
It has a pliable & soft texture. Due to this, it can be plated easily into thin coatings or drown out into thin wires.
The gold doesn’t corrode or tarnish unlike other metals that are highly conductive such as copper and silver.
What is the key difference between Karat & Carat?
Karat is a measure of purity in terms of gold. The common karat (K) values are 24K, 22K, 18K, and so on. The higher the value of karat, the greater will the rate of gold.
Why does the price of gold changes almost daily?
The gold price fluctuates almost daily because of the economic as well as political factors occurring throughout the world.
Why should expats purchase gold in Abu Dhabi?
There is several reasons that why expats should buy gold in Abu Dhabi and some of them are as follows:
Gold price in Abu Dhabi are cheaper.
Gold in Abu Dhabi is pure.
The gold rate in Abu Dhabi follows international market rates.
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