Karan Singh, an Indian entrepreneur who operates restaurants in the UAE, has been investing Dh5,000 ($1,361) each month to buy gold bars for the last four-and-a-half years.
Although gold prices have recently been hitting record highs, Mr Singh, 41, says it does not make a difference to him since he invests using the dollar cost averaging method. This involves investing the same amount of money at regular intervals over a certain period of time, regardless of price.
“We buy jewellery for the family during Diwali, no matter what the gold price is. There are no excuses not to buy gold on this occasion,” he says. “Even though I may be paying more for gold now, I know that I have recovered that money with my previous investments. So, I am not sustaining a loss.”
Gold prices hit a record high of $2,758.37 on October 23 as the conflict in the Middle East, along with uncertainty around the US Federal Reserve outlook and American election has stoked demand for safe-haven assets. The precious metal has surged by about a third this year, hitting successive highs, with the rally intensifying in the last couple of months as the Fed pivoted to cutting interest rates.
The anticipation of a tight race between Donald Trump and Kamala Harris in the US presidential race has also pushed investors towards safer assets like gold, bolstering its appeal despite a stronger US dollar, says Mohamed Hashad, chief market strategist at Noor Capital.
“Adding to the risk-averse sentiment, geopolitical concerns, particularly the escalating conflict in the Middle East, have further boosted demand for safe assets,” he says.
“Fears were heightened after an attempted drone attack on Israeli Prime Minister Benjamin Netanyahu, along with reports of Israel planning strikes against Hamas, Hezbollah, and potentially Iran.”
Money managers have also added to the strength of the rally, with hedge funds increasing net-long positions in gold in recent sessions and investors adding the precious metal to exchange-traded fund holdings. Central banks’ purchases of bullion are also driving up its prices.
Mr Singh buys gold bars as an alternative investment, which helps diversify his portfolio and hedge against volatile stock investments.
“I don’t buy [gold] for religious reasons or attach emotional value to these purchases,” he says. “With the geopolitical situation in many countries, I feel gold prices will increase in the next 12 to 14 months at least.”
He prefers to buy gold bars from wholesalers as they offer a better price than retail jewellers. He also makes sure he gets a bill for his purchase.
“The advantage of getting a bill is that you can sell it back to them. I have liquidated gold when I needed to make a big purchase elsewhere,” Mr Singh says. “The only risk to buying gold bars is where to store them. Gold ETFs can be considered as an alternative.”
Afrin Anosh, a 25-year-old Sri Lankan who works in public relations in the UAE, says her family usually buys gold as a tradition during a special occasion or festival, irrespective of the commodity’s price.
The family also sets aside a certain amount every month to buy gold. However, amid high bullion prices, they have prioritised buying coins and bars instead of jewellery, since merchants tend to deduct service fees and making charges.
“New styles tend to come during the festive season. But going by how gold prices have increased, I am not sure if we will buy gold. It’s off-putting to see the price of even a simple gold necklace,” she says.
Harsh Patni, director of Jewel Trading in Dubai’s Gold Souk, says customers are delaying gold purchases amid high rates because they are more price-conscious.
If they like a particular jewellery design, they want the jeweller to customise it for them at a lower weight or they buy lightweight jewellery, he explains.
“As a jeweller, we keep altering designs to cater to customer preferences and are flexible. We are competing against 500 jewellers within a 2km radius in the Gold Souk,” Mr Patni says.
“Our diamond jewellery is unique. But in the 22-carat gold market, the product ranges in other jewellers are quite similar, so pricing is the main differentiator.
“We offer different schemes to gain customer confidence, such as with buy-now-pay-later company Tabby or gold price lockdown. Instalment payment schemes provided by banks have also been a big game changer in the market.”
Mr Patni says that high-end customers don't look at price. They usually buy gold bars, polki and kundan jewellery. The 22-carat gold segment caters more to the middle and lower segments of the population, he adds.
“There are two types of customers who buy gold during the festive season. One segment is set on their values and buy a gold or silver bar every Dhanteras or purchase gold coins to gift their employees,” according to Mr Patni.
“The other segment includes newly-married couples and young professionals who buy coins and bars as they feel gold is a good investment because it has yielded 30 per cent to 40 per cent returns in a year.”
More options could also hit the market soon. “Until now, only 18, 21 and 22-carat gold were in demand. But with gold prices going up, I feel even 10, 12 and 14-carat gold may be introduced in the UAE, so customers have alternatives to choose from,” Mr Patni says.
Meanwhile, India’s reduction of import duty for gold in July has dealt a big blow to the UAE gold industry, according to the retailer.
Before the cut, Indian tourists would travel to the UAE to buy gold because of the 15 per cent price difference, but now there is only a 6 per cent gap. This has resulted in a 10 per cent to 15 per cent drop in volume for the UAE’s jewellery market, Mr Patni reckons.
According to Aditya Singh, head of international business (jewellery) at Titan Company, India’s import duty reduction has “increased discussions” among tourists over whether it is viable to buy gold from the UAE. But buying in the Emirates guarantees pure gold, a diversity of designs and favourable prices for consumers, he adds.
Titan's jewellery brand Tanishq has not recorded a significant dip in demand because of the record gold prices. Demand for gold rises from October to March because of the heavy inflow of tourists to the UAE.
In the first few days of the festive season, Tanishq has recorded good growth compared to last year. “There is a certain section of people who may have saved a certain amount to be spent on gold during Diwali. Because rates are high, they might buy a slightly lesser grammage,” Mr Singh says.
Tanishq has launched a new jewellery collection for Diwali, called Nav-Raani and is offering several discounts and schemes, including up to 100 per cent off on jewellery making charges across its entire range.
Earlier this year, the retailer had also launched a programme called Drops of Gold, where a customer can purchase gold coins when rates are low. When they plan to buy a new item during Diwali, they can use these gold coins.
“We have observed that customers prefer to pay upfront for their jewellery purchase. We are talking to a few start-ups that offer save now, buy later schemes,” Mr Singh says.
Rashid Al Harmoodi, senior director for property management at real estate developer Ithra Dubai, says the Dubai Gold Souk Extension records a surge of local and international customers ahead of high-demand occasions like Diwali and Dhanteras every year. Almost 300 retailers sell gold and jewellery at the Extension.
The five pillars of Islam
Brief scores:
QPR 0
Watford 1
Capoue 45' 1
Kibsons%20Cares
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The five pillars of Islam
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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Zayed Sustainability Prize
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
The five pillars of Islam
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
UAE squad
Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon
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The view from The National
Mohammed bin Zayed Majlis
DUBAI%20BLING%3A%20EPISODE%201
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WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
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THE%20STRANGERS'%20CASE
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The years Ramadan fell in May
Mohammed bin Zayed Majlis
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
KILLING OF QASSEM SULEIMANI
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KILLING OF QASSEM SULEIMANI
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
Killing of Qassem Suleimani
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Result
Crystal Palace 0 Manchester City 2
Man City: Jesus (39), David Silva (41)
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Honeymoonish
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Killing of Qassem Suleimani
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Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
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Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
UAE SQUAD
Mohammed Naveed (captain), Mohamed Usman (vice captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan
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Ad Astra
Director: James Gray
Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
Common%20symptoms%20of%20MS
%3Cul%3E%0A%3Cli%3EFatigue%3C%2Fli%3E%0A%3Cli%3Enumbness%20and%20tingling%3C%2Fli%3E%0A%3Cli%3ELoss%20of%20balance%20and%20dizziness%3C%2Fli%3E%0A%3Cli%3EStiffness%20or%20spasms%3C%2Fli%3E%0A%3Cli%3ETremor%3C%2Fli%3E%0A%3Cli%3EPain%3C%2Fli%3E%0A%3Cli%3EBladder%20problems%3C%2Fli%3E%0A%3Cli%3EBowel%20trouble%3C%2Fli%3E%0A%3Cli%3EVision%20problems%3C%2Fli%3E%0A%3Cli%3EProblems%20with%20memory%20and%20thinking%3C%2Fli%3E%0A%3C%2Ful%3E%0A
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
Set-jetting on the Emerald Isle
Other shows filmed in Ireland include: Vikings (County Wicklow), The Fall (Belfast), Line of Duty (Belfast), Penny Dreadful (Dublin), Ripper Street (Dublin), Krypton (Belfast)
