UAE will be Asia’s gold hub in BRICS’ new economic corridor: Bin Sulayem

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UAE has already gone past London as world’s second biggest gold trade centre

The BRICS grouping has been expanded with the entry of the UAE. For Dubai and the UAE, this is just the catalyst to reinforce its status as a global gold trading hub.

Dubai: The UAE is best placed to serve as the global hub for gold trade as a new economic corridor opens up between members of the BRICS grouping.

This would make the UAE an ‘alternative’ to traditional gold trade centres, according to a new report by the DMCC.

The UAE is already the second biggest gold hub in the world, having gone past the UK in 2023. Switzerland remains at the top of this particular ranking. 

The UAE formally joined the BRICS bloc earlier this year. The group features Brazil, Russia, India, China and South Africa.

“We have witnessed historic shifts in the precious metals market, driven by Western sanctions that have forced record buying of gold by central banks and a rethink by many countries when it comes to their reliance on the US dollar,” said Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC.

“We are seeing a new gold corridor form across Asia, with Dubai at its centre – exemplified by the UAE’s rise to become the world’s second-largest gold trading hub last year.”

A lot of factors are in play here that could elevate Dubai and the UAE’s status as a trade conduit. It would also mean less reliance on the US dollar to settle trades between countries, and the expansion of BRICS – Saudi Arabia too is a new addition – could be just the gear shifter for that.

A Reset in global gold trades

The UAE’s gold trade is valued at over $129 billion. The impression in trading circles is that BRICS will recast established norms in trade ties and in the movement of goods between member countries.

Ahmed Bin Sulayem of DMCC says: “We are seeing a new gold corridor form across Asia, with Dubai at its centre…”

With the presence of China and India – the biggest and second biggest consumers of gold – in BRICS, there will be changes to how the metal is traded and moved around in the future.

UAE-India CEPA deal

Apart from BRICS, the UAE also has a CEPA deal with India, which too has meant a sizeable increase in offtake of bullion from here at a 5% import duty to India. India’s import duty for the metal from other markets is 6% now, after it was cut from 15% earlier this year.

India can import up to 160 tonnes of gold from the UAE during the current 2024-25 financial year.

‘Safety’ of gold holdings

In its report, DMCC notes the ‘geopolitical challenges’ – including sanctions against Russia – that have ‘shaken the global financial economy’.

It has led to countries ‘reconsider’ their reliance on the US dollar and the safety of their gold holdings.

“As a result, central banks have ramped up their gold purchasing activities and repatriated US-stored bullion to diversify away from the dollar, with some even using gold in lieu of the US dollar in trade transactions,” The DMCC report notes. “This shift is driving gold prices to unprecedented levels, creating a ripple effect across the global economy.”

 

Source – Gulf News

Disclaimer : The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.

How to Invest in Gold: An Investor’s Guide

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In today’s digital age, the options to invest in gold have expanded beyond the traditional. Gold has stood the test of time as a reliable investment option, especially during economic downturns. Known for moving against the stock market, gold often gains value when equities decline, making it an essential asset for a well-balanced portfolio. Whether you’re looking to buy physical gold or explore innovative digital options, there’s something for every investor. Let’s dive into the best ways to invest in gold in 2024.

Why Gold is a Smart Investment

Gold is more than just a shiny metal—it’s a financial safety net. As a hedge against inflation and economic instability, it holds its value when other assets falter. Historically, gold has delivered substantial long-term returns, making it a go-to asset for investors seeking stability.
But the question remains:
What’s the best way to invest in gold today? Let’s explore.

1. Gold Jewelry: A Cultural Staple with Investment Potential

In many countries, especially India, gold jewelry is more than an ornament—it’s a symbol of prosperity and wealth. However, while jewelry is a sentimental investment, it’s not always the most financially sound option.

High-making charges, which can range from 10% to 20%, often reduce your overall returns. Additionally, the resale value may be lower than other gold investments due to wear and tear or design trends.

2. Solid Gold: Coins, Bars, and Biscuits

For those who prefer tangible assets, purchasing gold in the form of coins, bars, or biscuits is a traditional yet effective investment strategy. With lower making charges than jewelry, this option provides better resale value.

However, physical gold comes with risks such as theft and storage costs. Storing large quantities of gold securely requires either a home vault or a bank locker, both of which can incur extra expenses.

3. Gold Saving Schemes: A Systematic Approach

Gold saving schemes are popular among buyers who prefer a systematic investment approach. Many jewelers offer these schemes, allowing you to deposit a fixed amount regularly. At the end of the scheme, you can redeem the amount for gold at the prevailing price.

However, these schemes may not always yield higher returns compared to traditional investment options. It’s crucial to choose a trusted jeweler and read the fine print to avoid unexpected charges.

4. Digital Gold: Convenient and Affordable

With the rise of fintech platforms, digital gold has become a popular and accessible way to invest in gold. You can start with as little as $1 and gradually increase your holdings. The gold is backed by physical assets, and you can either sell it digitally or redeem it for physical gold.

This option eliminates the risk of theft and storage issues. However, some platforms may charge small holding fees, and not all offer physical redemption options.

5. Sovereign Gold Bonds (SGBs): Safe and Government-Backed

Introduced by the Government of India, Sovereign Gold Bonds (SGBs) are one of the safest ways to invest in gold. These bonds have a fixed interest rate and an 8-year tenure, offering stability and moderate returns.

Because SGBs are backed by the government, they come without the risks of physical gold storage. Plus, there are no management fees, making them cost-effective in the long run. However, the bonds cannot be redeemed in physical gold—only in cash.

6. Gold ETFs: Stock Market Meets Gold

Gold ETFs (Exchange-Traded Funds) offer investors a way to gain exposure to the price of gold without owning physical gold. These funds trade on the stock exchange and require a Demat account, making them convenient for those already involved in the stock market.

Since you don’t own physical gold, storage is not a concern. However, gold ETFs are subject to brokerage fees, and their performance is tied to market trends.

7. Gold Mutual Funds: Diversify Your Investment

Gold Fund of Funds (FOFs) invest in a basket of gold ETFs, offering diversified exposure to the gold market. While this approach reduces risk, it comes with higher fees due to the layered nature of mutual fund investments.

Gold FOFs are slightly more expensive, with both the fund’s expense ratio and that of the underlying ETFs affecting returns.

Key Takeaways for Smart Gold Investors

  • Choose Wisely: Your investment strategy should align with your financial goals. Jewelry, while beautiful, may not offer the best returns, whereas digital gold and SGBs can provide better liquidity and security.
  • Diversification Matters: Spread your investments across physical gold, digital options, and bonds to maximize returns while minimizing risk.
  • Long-Term Gains: Gold has historically offered double-digit returns when held for the long term. Patience is key.

In today’s evolving market, gold remains a steadfast investment. Whether you prefer traditional gold investments or want to explore modern fintech options, there’s something for every investor. Choose the option that best fits your financial goals and start building your golden future today!

Nuqi Gold app is here to make gold investments easier for everyone, whether you’re a first-time investor or someone who’s been doing this for years. With a user-friendly design, it lets you buy, sell, and manage your gold effortlessly, right from your phone. You can stay updated with real-time market insights and feel confident knowing your transactions are secure. The app even helps you keep track of your investments, making it simple to see how your gold is performing.

“The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.”

Disclaimer : The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.

Why You Should Consider Buying Digital Gold?

by with No Comment Blog

In today’s tech-savvy world, digital gold investment has become a popular choice for individuals seeking to diversify their portfolios and secure their financial futures. As more people turn to online gold investing, it’s essential to understand the benefits that make this modern approach to wealth creation appealing. Let’s explore the key advantages of investing in digital gold and how it can enhance your financial strategy.

1. Accessibility at Your Fingertips

With digital gold, buying gold is as easy as a few taps on your smartphone. Unlike traditional gold purchases that often require visiting a jewelry store or bank, online gold investing allows you to buy gold anytime, anywhere. This level of accessibility democratizes gold investment, making it easier for everyone—from students to working professionals—to begin their journey into the world of gold.

2. Low Minimum Investment

One of the standout features of digital gold is the low minimum investment requirement. Many digital gold platforms allow you to start investing with as little as a few hundred rupees. This affordable entry point enables new investors, particularly those with limited disposable income, to own a portion of this precious metal without significant financial commitment.

3. Liquidity: Cash When You Need It

Need cash in a hurry? Digital gold provides excellent liquidity compared to physical gold. When you invest in digital gold, you can quickly liquidate your investment through the app or platform you’re using, allowing for immediate cash availability. This flexibility ensures that you can access funds when necessary, offering peace of mind during financial emergencies.

4. Transparent Pricing

Unlike traditional gold purchases that can come with hidden costs—like making charges or assay fees—digital gold offers transparent pricing. You pay for the current market value of the gold without any additional surprises. This clarity fosters trust in your investment decisions, enabling you to make informed choices about your gold portfolio.

5. No Storage Worries

Owning physical gold comes with the burden of storage, security, and insurance. With digital gold, these worries are a thing of the past. Your gold is securely stored in a digital format, protected by advanced security measures. This means you can invest in gold without the hassles of managing physical assets, allowing you to focus on growing your wealth.

6. Diversification of Your Investment Portfolio

In the world of investing, diversification is crucial. Adding digital gold to your investment portfolio can help spread risk and stabilize returns. Gold has historically performed well during economic downturns, making it an excellent asset to balance your investments in stocks, bonds, and real estate.

7. Hedge Against Inflation

As inflation erodes the purchasing power of money, investing in digital gold provides a reliable hedge against inflation. Historically, gold has maintained its value during economic uncertainty. By investing in digital gold, you protect your wealth from the ravages of inflation, ensuring your money retains its value over time.

8. Eco-Friendly and Ethical Investment

With growing environmental concerns surrounding gold mining, digital gold represents a more sustainable option. By choosing digital over physical gold, you help reduce the demand for environmentally damaging mining practices. Many digital gold platforms also focus on ethical sourcing, aligning your investment with your values and contributing to responsible mining practices.

9. Educational Resources and Community Support

Many digital gold platforms offer educational resources and community support to assist investors. Whether you’re a beginner or a seasoned investor, these tools can help you understand market trends and make informed decisions. Engaging with a community of like-minded investors can also enhance your knowledge and experience in the gold investment space.

10. The Potential for Value Appreciation

Like any investment, digital gold carries the potential for value appreciation. With ongoing demand for gold across various sectors, including jewelry and electronics, the value of gold can rise, leading to potential gains on your investment. Investing in digital gold allows you to capitalize on future opportunities, making it a smart financial move.

Investing in digital gold is not just a trend; it’s a modern approach to wealth creation that offers numerous benefits. With its accessibility, transparency, and potential for value appreciation, digital gold provides an excellent alternative to traditional investment methods. Whether you’re looking to diversify your portfolio, hedge against inflation, or start your investment journey, digital gold can illuminate your path to financial success.

So, are you ready to embrace the future of gold investment? With the right platform and knowledge, your golden opportunities await just a click away!

Nuqi Gold app is here to make gold investments easier for everyone, whether you’re a first-time investor or someone who’s been doing this for years. With a user-friendly design, it lets you buy, sell, and manage your gold effortlessly, right from your phone. You can stay updated with real-time market insights and feel confident knowing your transactions are secure. The app even helps you keep track of your investments, making it simple to see how your gold is performing.

“The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the information. Any reliance you place on such information is therefore strictly at your own risk.”

Disclaimer : The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.

How to Invest in Gold: An Investor’s Guide

by with No Comment Blog

Gold has long been seen as a symbol of wealth and security, but stepping into the world of gold investment can feel overwhelming. Whether you’re diversifying your portfolio or safeguarding your finances, gold presents a solid investment option. Let’s explore how you can navigate the different ways to invest in gold.

 

Exploring Your Gold Investment Options

When investing in gold, you have several paths to choose from, each with its own benefits:

  •  Physical Gold: Owning tangible gold, like coins or bars, can be rewarding both aesthetically and financially. However, it also comes with responsibilities such as secure storage and insurance.

  •  Gold ETFs (Exchange-Traded Funds): If managing physical gold seems cumbersome, gold ETFs are a convenient alternative. These allow you to invest in gold without physically holding it, and they trade on the stock exchange, making them easy to buy and sell.

  •  Gold Mining Stocks: This option lets you invest in companies that mine gold, offering a unique way to gain exposure to the gold market. While this can be profitable, the performance of these stocks is influenced not only by gold prices but also by the company’s operations.

  •  Gold Futures and Options: These are higher-risk investments suitable for experienced investors. While they offer potential for significant returns, they come with greater volatility and require a strong understanding of market dynamics..

  •  Digital Gold: In today’s digital age, you can invest in gold through platforms that allow you to buy it digitally, backed by physical gold stored securely. It’s a modern, flexible option for gold investment..

Clarifying Your Investment Goals

Before you make any decisions, take a moment to reflect on what you want to achieve with your gold investment:

●  Purpose: Are you looking to preserve your wealth, protect against inflation, or chase quick gains? Understanding your motivation will guide your investment strategy.

●  Risk Tolerance: Be honest with yourself about how much risk you can handle. Gold can be volatile, so knowing your comfort level is key.

●  Time Horizon: Consider how long you’re willing to hold onto your investment. If you’re in it for the long haul, physical gold or ETFs might be more suitable, while those looking for short-term returns may find futures more appealing.

Choosing Your Investment Method

With your goals in mind, it’s time to pick your investment method:

●  For long-term stability, consider physical gold or gold ETFs. They tend to appreciate over time, providing a solid foundation for your portfolio.

●  If short-term gains are your goal, gold futures and options might catch your interest, but be prepared for the risks involved.

●  A balanced approach might involve a mix of ETFs, mining stocks, and some physical gold, giving you both diversification and risk management.

Seeking Professional Guidance

If you’re unsure about which path to take, consulting with a financial advisor can help. They can offer personalized advice that aligns with your risk tolerance and financial goals.

Investing in gold doesn’t have to be daunting. By understanding your options, staying informed, and defining your objectives, you can navigate gold investment with confidence. Whether it’s physical gold, ETFs, or digital platforms, there’s a method that can help you meet your financial aspirations.

And to make your journey even easier, Nuqi Gold’s app is here to support you. Whether you’re just starting or have years of experience, the app offers a user-friendly platform to buy, sell, and manage your gold investments with ease. With real-time market updates and secure transactions, you can keep track of your gold’s performance anytime, anywhere.

Take your first step and let your investments shine!

“The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the information. Any reliance you place on such information is therefore strictly at your own risk.”

Disclaimer : The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.

Why Are Gold Prices Rising?

by with No Comment Blog

Gold has long been regarded as a stable investment option, revered for its ability to retain value and serve as a hedge against economic uncertainties. As global market conditions fluctuate, many investors are increasingly interested in understanding the dynamics behind the rising prices of gold. This blog aims to clarify the key factors influencing gold prices and provide insights into why this precious metal continues to attract attention.

Key Factors Influencing Gold Prices

1. Demand and Supply Dynamics

The interplay between demand and supply is a fundamental determinant of gold prices. Gold is a finite resource, and its mining production cannot keep pace with the increasing demand driven by various factors such as economic instability and rising investment interest. As demand for gold increases, particularly during periods of geopolitical uncertainty, its limited supply results in upward pressure on prices.

2.Inflation Hedge

Gold is traditionally viewed as a reliable hedge against inflation. When inflation rates rise, the purchasing power of currency diminishes, prompting investors to seek assets that can preserve value. Gold’s intrinsic worth remains unaffected by currency fluctuations, making it a popular choice during inflationary periods. As inflation concerns mount, gold becomes increasingly appealing, driving its prices higher.

3.Interest Rate Influences

The relationship between gold prices and interest rates is inverse. Lower interest rates tend to make gold more attractive as an investment option since the opportunity cost of holding non-yielding assets decreases. In contrast, when interest rates rise, the allure of gold diminishes as other investments offer higher returns. This dynamic plays a crucial role in shaping investor sentiment and market trends.

4.Cultural Significance and Seasonal Demand

In countries like India, gold holds significant cultural importance, particularly during festive seasons and weddings. Increased demand for gold jewelry during these times can lead to noticeable price surges. Understanding these cultural trends is essential for investors seeking to anticipate market movements, as seasonal demand fluctuations can greatly impact gold prices.

5.Cultural Significance and Seasonal Demand

Government actions, particularly those of central banks, play a pivotal role in influencing gold prices. When central banks buy or sell gold reserves, it can lead to significant market fluctuations. For instance, policies enacted by the Federal Reserve and other national financial institutions can affect gold prices and overall market sentiment.

6. Value of the US Dollar

Gold is primarily traded in US dollars, making the currency’s strength a critical factor in determining gold prices. When the dollar strengthens, gold prices may decline as it becomes more expensive for investors using other currencies. Conversely, a weaker dollar often leads to increased demand for gold, driving its prices higher as investors seek protection against inflation and economic instability.

Why Gold Holds Enduring Value

The value of gold is supported by several factors:

  • Scarcity: Gold’s finite nature contributes to its value, as it cannot be artificially produced.
  • Historical Significance: Throughout history, gold has been a symbol of wealth and stability, serving as a medium of exchange and a store of value.
  • Industrial Uses: Beyond investment, gold has applications in various industries, including electronics and aerospace, further reinforcing its value.

Recent Trends in Gold Prices

In recent years, gold prices have experienced significant fluctuations:

  • August 2023: Gold prices reached an all-time high of $760 per ounce, driven by shifts in US Federal interest rates.
  • 2022: Prices surged to approximately $680 per ounce due to geopolitical tensions arising from the Russia-Ukraine conflict.

Historical peaks occurred in response to global economic uncertainties and shifts in monetary policy, highlighting gold’s status as a safe-haven asset.

As a time-tested investment, gold continues to provide a sense of security amidst market volatility. Its prices are influenced by a complex interplay of demand and supply dynamics, inflation, interest rates, cultural significance, government policies, and currency values. For investors seeking stability, gold remains an appealing option, underscoring its relevance in today’s economic landscape.

By understanding the various factors influencing gold prices, investors can make informed decisions and leverage gold’s enduring value to enhance their financial portfolios.

 

And don’t forget, Nuqi Gold’s app is designed to simplify your gold investment journey. Whether you’re a first-time investor or have years of experience, our app allows you to buy, sell, and manage your gold investments effortlessly. With real-time market insights and secure transactions, it’s easy to stay on top of your gold’s performance and make smart investment decisions.

“The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the information. Any reliance you place on such information is therefore strictly at your own risk.”

Disclaimer : The information provided herein is for general informational purposes only and does not constitute professional advice or management services. While we strive to ensure the accuracy and reliability of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information. Any reliance you place on such information is therefore strictly at your own risk.