One of the biggest markets for gold in the Asian provinces is Dubai. The city boasts of being one of the fastest growing economies in the world, and two of the major reasons for this are pure gold and black gold. Whether we would want to assume it or not, this city within the emirates has one of finest hotels, buildings and sceneries that the world has to offer and you can only blame gold in the economy for that. The metropolis has emerged heavily as a tourist attraction site, and boasts of the biggest architectural projects throughout the world.
Gold has played a big role here, and if you are interested in trading gold, you may need to know of how it is done. The gold rate in Dubai keeps shifting in the markets every 15 minutes, constantly affecting the price thereof. However, this is the best environment for doing the trade. These 3 tips will also assist you as you trade and keep watch of the Dubai gold price.
Tip # 1: Get the Physical Form
It not only feels nice to have gold in your hand, but it also gives you a sense of ownership. It is the most effective way of investing in this trade. Many people shy away from acquiring the gold coins, but they do not realize that gold is most expensive once it is in a person’s possession. However, it is understood that it immediately possess some security concerns.
The best way to go around this is to place the gold in a deposit box and place it somewhere it is not seen by other people. If that is not possible, you can it placed in the storage spaces made available in companies. Trading in gold stocks is less risky, but holding on to the gold for a longer period might provide a bigger return in the end.
Tip #2: The Spot Trade
While you may not have enough money to invest in large amounts of gold, you may decide to join the gold markets. The trick is simple in the market – buy low and sell high. In Dubai, you may have days when the market is on an uptrend. You can decide to join when it is at a lower point as it goes up. Occasionallysome events shake the Dubai gold markets, and the gold price in Dubai suddenly falls. Here you can sell the contract and acquire your profits. It will only cost around 50 to 70 pips as the broker fees. However, you need to be cautioned to take up your management skills with seriousness.
Tip # 3: Portfolio Diversification
Never ‘put all your eggs in one basket’. Diversification is a sure way of reducing the risk factors. Instead of investing the whole amount on bars, or investing your capital totally on the stocks, you can have some gold capital invested in other areas. In essence, you can split your investment four ways: perhaps 25% of the capital in coins, 20% in bars, 25% in the stock market etc. This way, if one form fails to make a profit, you will have profit possibility through other channels.
Gold is a sure investment. The trade is safer than most people, even when it comes to the stock market. The greatest investment you will make in life is investing in what you cherish the most. When it comes to material things, gold is the way to go.