Things to know prior to buying gold coins in the UAE
Earlier people used to trade in gold; gold currencies ruled the world, slowly and steadily paper currencies were introduced but gold didn’t lose its value even then. It is still one of the most precious metals that everybody wants to invest in. Some people purchase jewellery while others buying coins or bars. Whatever form of gold you may decide to buy, it will help you fight inflation.
If you are one of those people who wish to buy gold coins, here are things that you must know before you make a purchase:-
Check for purity
The purity of gold coins can be measured by two factors namely Karat and fineness. The law in UAE mandates jewellers to sell gold coins that carry the hallmark of the precious metal's purity. The purest form of gold is 24K; other qualities of gold available in the UAE are 18, 21 and 22-karat. The purity of gold in the UAE is ensured by the Dubai Gold & Commodities exchange. Fineness is another factor that must be considered to measure the purity of gold. It refers to the ratio of the weight of gold to the total weight of the coin. The 24-kt gold shows a fineness of 999.9 parts per thousand of purity.
Check for hallmark
While buying coins at a fixed gold rate in UAE, apart from purity one must also thoroughly check if it is embossed with a hallmark. Hallmarking has been made mandatory in Dubai from 2015. Now the jewellery and coins contain a tag defining the karat and weight of gold. Dubai Central Laboratories Department (DCLD) ensures that the customers are not cheated while buying gold and therefore the gold coins are stamped to certify the level of purity.
Be wary of the packaging
It is highly advised that you must purchase gold coins that are in tamper-proof packaging. The packaging safeguards the coins against fraud, damage, and counterfeiting. Also, if you wish to re-sell the gold coin, the packaging holds immense value.
Know the making charges
Purchasing gold coins is comparatively easier than buying jewellery. It offers the option of buying the purest form of gold with a minimum weight of 0.5 grams with comparatively lower making charges. In Dubai, the making charges range from AED 10 per gram to AED 500 per gram.
Bargain if necessary
Every time you decide to purchase gold you will find making charges associated with it. Though you won’t find any discounts on the original gold price in UAE; making charges can always be negotiated.
Know that you have more options to buy and sell
Gold coins can be bought from banks, stock holding corporations, jewellers and even from certain non-banking financial companies. Apart from purchasing, gold coins are comparatively easier to sell.
Some of the most popular gold coins in the UAE are:-
- American Eagles - American gold eagle coins are one of the two gold coins produced by US Mint. Dubai residents can purchase them in smaller sizes of a quarter ounce, half an ounce or tenth ounce.
- Canadian Maple Leafs - Another popular coin available in Dubai is Canadian Maple Leaf gold. These coins are .9999 pure making them some of the purest in the world.
- Emirates Gold Bars - Emirates Gold bars are range in size from 1 gm to 1 kg. They are among the purest forms of gold available in Dubai.
- Al Etihad Gold Bars -These gold bars have the oldest with roots dating back to 1940s. The gold bars range from 100 grams to full kg.
I hope that the points mentioned above will help you purchase the right type of coins for yourself.