Smartest investment and life plans in UAE

Smartest investment and life plans in UAE

Cancel
Cancel
By Clicking on "Invest Now", I declare that I am a resident of UAE and holding a valid Visa and agree to the website Privacy Policy and Terms of Use.
Get updates on WhatsApp

Types of Gold in Dubai: Invest in White Gold or Yellow Gold?

By PolicyBazaar

Invest smart today for a better tomorrow

The United Arab Emirates is widely known as the epicenter of gold trading in the world. The country houses many bullion investment institutions, gold bullion dealers, gold refineries while at the same time the gold trade in the gulf country has been at its peak for decades. To the rest of the world, UAE’s attraction to wealth and its fascination with glitz and glamour seems quite intriguing. Despite there being a lot more that this country has to offer other than sports cars and diamonds, the fact remains that it is one of the world’s top gold trading centers and if you are looking to pamper yourself with riches, this is the place to be! The gold rate in Dubai is certainly another reason to choose this country as your next destination for investments in gold. So, let us dig down about the HOWs and WHYs of gold investment in the UAE.

Making an investment in one of the most precious metals available on this plan might be a daunting task as it certainly comes with its fair share of associated risks. However, since there is no tax levied on the yellow metal in Dubai, it is certainly the best place to buy gold whether one is looking to buy bullions, bars, or kilos.

For those of you eyeing to invest in gold, the gold rate in Dubai is certainly a huge driving force. So if you find yourself in the city, there is no harm in picking some exquisite pieces to add to your jewelry collection. But there are some questions about gold that might be confusing to the buyers, the most common one being- what is the difference between white gold and yellow gold? And which is better for making an investment? So let’s address them in this detailed article:

What is yellow gold?

Gold in its purest form, which is 24 karats, is extremely soft and thus it can not be carved into jewelry since it will easily lose its shape. Hence, pure gold is often mixed with other alloys and metals like platinum and nickel to make it hard enough to be molded into different shapes. This increases both its strength and durability.

The more traditional shade of gold, which is yellow gold, is composed of metals like silver, zinc, and copper. The metals like copper and silver create a natural film of colored oxide on top of the surface, thus enhancing the yellowish hue of yellow gold. However, the copper content in the alloy determines how yellow the metal appears. The concentration of these other metals in the alloy also plays a role in deciding the gold rate in Dubai.

Gold rate in Dubai: AED 2164.10 per 10 gram

Gold rate in UAE: AED 2232.50 per 10 gram

Here are some of the PROs and CONs of this variant of gold to help you make an informed decision about gold investments in UAE-

PROs of yellow gold:

1. The classic color of yellow gold gives it a vintage appeal.

2. If you are looking to invest in jewellery, the yellow gold beautifully complements the lower colored diamonds, thereby allowing you to make a substantial saving.

3. Yellow gold is easy to work with during the repairs and as such need, less maintenance, making it a good investment option.

4. The gold rate in Dubai makes investments in yellow gold quite lucrative.

CONs of yellow gold:

1. This form of gold is not hugely popular and as such one gets limited design options when buying yellow gold jewellery.

2. This variant is a lot more prone to scratches and hence might occasionally require buffing to restore its luster and shine.

3. It is found that often yellow gold is harder to match with other colorful gemstones and diamonds.

What is white gold?

Often confused with platinum or silver, white gold is chemically plated with rhodium which is a hard white silvery element. It contains another white metal namely, nickel or manganese, or even palladium. Depending upon the type of jewelry to be made, the alloy mixture can be varied.

Interestingly, a lot of people carry around the misconception that white gold in its raw form is white in appearance. On the contrary, white gold carries a natural tinge of yellow in its raw form. To get that jubilant white appearance, the metal has to undergo a rhodium plating which imparts the finished product with a lustrous and shiny coating. White gold is usually known for its sturdy nature and is, therefore, the metal of choice for creating beautiful ring and necklace designs.

White Gold rate in Dubai: AED 2190.04 per 10 gram

White Gold rate in UAE: AED 2225.00 per 10 gram

Here are some of the PROs and CONs of this variant of gold to help you make an educated decision about your next gold investments in the UAE-

PROs of white gold:

1. The white gold is certainly a lesser cost alternative to platinum while still being similar to its dazzling appearance and the white gold price in UAE definitely proves that.

2. If you wish to invest in jewellery, a neutral color like white ensures many matching options with several different gemstones and colored diamonds.

3. The hard rhodium coating on the alloy offers it a great protection against any wear and tear allowing buyers to get their money’s worth against the white gold rate in UAE.

4. Compared to its yellow counterpart, white gold is stronger due to the harder metals in its alloy. Hence, it is sturdier.

CONs of white gold:

1. White gold jewellery might cause skin irritation to some people if they are hypoallergenic to nickel.

2. The rhodium layer on top needs to be re-coated periodically, costing extra for maintenance.

3. If your white gold jewellery like rings need to be re-sized, there has to be an extra step in servicing known as plating. This comes at an extra expense, adding to the white gold rate in UAE.

Which is a better investment- White gold or Yellow gold?

The following points might also help you decide which to go for if you want to buy gold for investment purposes, taking advantage of the gold rate in Dubai as well as the white gold rate in UAE.

The Aesthetic Value

While there are no right and wrong options if you want to make investments in gold jewellery since it all boils down to one’s preference. Whether you decide to go for a white gold ring or a yellow gold one, it is entirely up to your personal tastes. If however, you have a hard time coming to a decision, the above-mentioned points can help you direct towards the right choice for you. 

Yet, ascertaining the aesthetic value of gold depends on many factors like culture, the current fashion trends. Yellow gold was the undisputed winner for centuries, but recent times have brought a newfound attention to other variants. These trends in the jewellery market have pushed consumers to prefer white gold over all others.

However, the worth of gold still flies high regardless of fashion trends or economic ups and downs. Therefore, investment in gold, as opposed to any other precious metal, is still preferred.

The Monetary Value

Gold has to be blended with other metals not just to make it more durable but also to impart it with distinctive colors like white, rose, or even green. So, the monetary value of gold is affected by the metals used in its composition. This needs to be kept in mind while making investments in gold as the gold rate in UAE for the different variants will be different.

The rhodium plating on white gold quickly turns yellowish and dampens the look of the jewellery, making it look grim if worn on a daily basis. Hence, once the rhodium plating starts to diminish usually over a period of one or two years, you will have to get it re-coated. This, therefore, makes white gold more expensive than the gold rate in Dubai for yellow gold.

Another important thing to note is that white gold is a lot more popular due to its high fashion appeal. As a result, the demand for white gold in mainstream fashion jewellery has pushed the white gold rate in UAE higher than its yellow counterpart. However, the value of gold continues to remain the same, depending upon the karats. So, for investment purposes, yellow gold seems to be more ideal.

The Bottom Line

Gold is the most valuable metal in the world and there are certainly many reasons to back this up. It is a great investment tool as it is known to withstand the test of time as well as the economic roller-coaster ride. So whether you decide to buy your jewellery in white gold or yellow gold, it is bound to reap numerous benefits over time. Gold investment requires patience. So, strap on and get ready to ride out the tough waters with your investments in the precious metal!