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Buying Gold in Dubai From a Bank vs Dealer vs Online

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One used as a currency by our forefathers to exchange goods, gold has been around for centuries. When there was no paper currency, gold served as the international currency in different forms — mainly gold coins. 

Though we no longer carry gold coins in our pockets to buy goods, gold is still one of the precious metals one can own. In fact, since we now have paper currency and coins, each country has its own, gold has become more precious. A sign of wealth and grandeur. 

Besides that, people are also using gold to hedge their money and assets. The value of gold is known for its stability. It neither increases by 200% overnight nor decreases at this rate. So the risk is almost negligible.

However, if you want to buy gold today, how would you do that? You have three options, buy from a bank, through a dealer, or through a trading exchange online. What’s your ideal option? Let’s discuss.

Buying Gold from a Bank

Buying gold from a bank is not a common practice. The first reason for this is that not many banks sell gold in Dubai. Secondly, when there are straightforward ways to buy gold in Dubai, why would one go to a bank for this purpose?

However, if you have made up your mind to buy gold through a bank, the first step is to find a bank that sells gold. And of course, you will have to physically visit the bank to learn about the procedure.

The bank might ask you to complete some paperwork if you are buying gold in bulk. And you will have to transport your gold to a storage facility on your own — which is of course a bit risky.

Banks are also inclined to charge a certain percentage of your gold purchasing as their commission. Further, they may have their own trading policy. To avoid any inconvenience, make sure you read the policy before buying gold from them.

However, if your bank has a storage vault in any form, you can keep your gold there. So you don’t have to transport your gold to another vault, nor do you have to worry about its safety. 

Another thing to consider is what type of gold your bank sells. Are they only dealing in bullions and coins? Also, what are the different types of gold quality they sell?

In the case of buying gold from a bank, do consider the price. Chances are the price of gold you are buying from a bank will be a touch higher than the market price.

Make sure the bank you have chosen is trusted. If someone in your family or among relatives have purchased gold from the same bank, do consider their reviews.

Buying Gold from a Dealer

Finding a trusted dealer to buy gold in Dubai is difficult, but not impossible. And there’s a fair amount of risk involved if the dealer is not recognized and has no physical office.

So many people will offer to become a middle-man/broker to buy gold on your behalf. Definitely, they will charge some commission based on the amount you are investing, but they can scam you as well.

Be careful, because only a few of them are trustworthy ones. And buying gold via a dealer is a lot more expensive than buying from a trading exchange or gold shop.

They are bound to charge you more than the market price. So as compared to the other options for buying gold, this channel is a bit risky. And if you have never purchased gold before, you have no idea how to determine the purity of gold, you are better off buying from a reliable source.

Buying Gold from an Online Trading Exchange

And here’s your best option. Buy gold from an online trading exchange that doesn’t require you to visit their exchange. Further, you don’t have to worry about transporting your gold to a storage vault.

When it comes to your investment’s security, it comes down to your choice. Have you done enough research before selecting a platform to buy gold, are you sure that it’s the best trading platform in Dubai?

Normally, these exchanges offer a variety of precious metals. From gold to silver and whatever metal you are interested in, you can buy on a single tap.

And some even give the luxury to keep your gold in your vault as long as you want and when you need some cash, sell it without even visiting the exchange.

Besides that, you will be able to keep your eyes on the fluctuating gold value. All credible exchanges have a mobile app through which you can manage your gold buying and selling.

This is an ideal option for those having a 9-5 hustle. Or their self-employment consumes more than half of their day. They neither have to worry about handling their gold nor do they have to visit a shop or meet a dealer to sell or buy gold.