People travelling to Dubai, always keep their list ready for shopping. Dubai is a haven for all shopping enthusiasts. Anything from apparel to spices and shoes to chocolates, you will get an array of items in this beautiful city. However, gold jewelry is one attraction that draws people the most.
Purchasing gold bullion in Dubai is popular because it was duty-free earlier, i.e., you need not have to pay any added tax. Moreover, the country follows strict regulatory measures and standards, which implies that you can purchase without worrying about its quality and genuineness.
Although gold prices in Dubai are the cheapest across the world, it’s vital to remember that intricate jewelry with high craftsmanship may boost the cost. Therefore, purchasing gold is still not a simple task that you should carry out without thinking. Therefore, this article offers some useful tips and tricks while purchasing bullion in gold.
Be Updated with the Gold Rates in Dubai
Knowing about the gold rate at least one day before buying is essential. Dubai uses two different rates of gold. Here, the prices are listed on big screen, often at the entrance of Gold Souks, and the gold rate is calculated per gram. The Federal Tax Authority of Dubai has levied a 5% VAT (Value Added Tax) on gold purchase from 2018 onwards.
These gold rates are real-time prices per Karat, and shops are bound to follow the same rate because of the strictness in this country. Furthermore, if any customer gets tricked or the price varies hugely, they can easily register a complaint to the police, and the shop will be at high stake. Thus, to avoid severe punishments, the prices are kept uniform at all shops in Dubai.
Master the Art of Negotiation
Bargaining often stands out to be a powerful tool when purchasing gold from Dubai. Even though the price of gold is set, you may bargain your fee down at the Gold Souks. Moreover, the discount rate depends on the amount of gold you purchase and its cost. Nevertheless, you can negotiate up to 50% on manufacturing charges. These costs usually vary from shop to shop, and bargaining on that price will surely add up value to your purchase.
Continue Perusing the Souks to Grab the Best Deals
Dubai has multiple jewelry stores at the old and new souks, creating tremendous competition among the sellers. Therefore, to grab the best deals, explore various shops and the ins and outs of the gold market. Since the gold rate is uniform, the rates vary based on manufacturing cost, and exploring such shops might be a good option to opt for discounts.
In addition, by perusing the markets, you may see all the lovely designs available and choose the ideal items to bring home with you. Moreover, visit shops located at nooks and corners, as these shops will give the best price rates as they are not too crowded and visited by buyers. Therefore, visit the narrower streets of the souks or bullion dealers in Dubai to find the best deal.
Don’t be too Frugal
Being too frugal may sometimes prove to be a bad decision. Not going into any negotiation to get the lowest rate may pay off sometimes. If you cannot haggle around for your lowest price, it is advisable to step out of the shop without getting engaged in any argument, or rather you can agree. Moreover, if the gold rate is within your budget, it’s better not to negotiate unnecessarily. Occasionally, the sellers will slash off certain dirhams to appreciate your purchase of silver bullion or gold.
Prefer Paying in Cash
Paying in cash in the gold souks will give you a better and more seamless shopping experience over any other payment method. The market takes credit cards but often adds 1% to 2% for convenience. This strategy, or rather paying by cash, can easily save thousands of bucks while purchasing gold.
Be aware of the Amount of Gold You can Return
One of the most crucial tips before buying gold in Dubai is knowing how much you can carry back to your respective countries. To prevent incurring hefty fines, it is best to verify with the customs website of the relevant country, as each one has distinct regulations.
How much gold bullion can you bring from Dubai to India? Generally, males are permitted to carry 20 grams of gold for no more than Rs. 50,000, while women are permitted to carry 40 grams of gold for no more than Rs. 100,000.
The Ideal Time to Purchase Gold in Dubai
Although you can buy gold in any season or day, to claim the best deals and offers, it is always best to shop for gold during the Dubai Shopping Festival (December and January) or Dubai Summer Surprises (June to August). Besides, if you can’t make it to these festivals, you can try purchasing gold on weekends. The greatest part is that gold prices won’t be exchanged on international markets until 2 am on Monday, making this the most stable time to shop and increasing the likelihood of receiving a decent offer.
Briefly, gold is quite cheaper in UAE than in any other country around the gold. This is because the Value Added Tax (VAT) applied to gold is minimal. However, if you are a novice, purchasing gold in Dubai can be challenging.
Following the tips mentioned above and tricks, if you still feel that buying gold from Dubai isn’t your cup of coffee, visit Ashoka Global. It is an international Bullion House and one of the leading bullion dealers in Dubai. They are specialized in supplying top-notch bullion products sourced from experts.