When planning a trip to Dubai, shopping will surely be on your mind – it’s a haven for all those who want to splurge. From clothes and footwear to electronics, chocolates and dry fruits to spices. But perhaps one of the biggest pulls to the city known for its shopping experiences is its gold jewellery.
The Old and the New Gold Souks (markets) in Dubai are probably the best in the world, with people from all over the globe visiting Dubai just to shop for their weddings or other special occasions.
Buying gold in Dubai is popular because it’s previously been duty-free (for more see point no.1), so you weren’t paying any added tax on it. Regulatory measures ensure that the products follow certain standards so you can be sure of its purity and buy without worrying about whether the items are falsely advertised or inflated in their prices.
However, it’s important to keep in mind that even though gold sold in Dubai is priced amongst the lowest in the world, intricate jewellery that is high on craftsmanship may add to its cost drastically. So buying gold is still not a straightforward process that you can blindly undertake. Here are some useful tips to keep in mind if you are making your way to the City Of Gold to make sure your shopping goes off without a hitch.
How To Buy Gold in Dubai
Know The Gold Rates in Dubai
As with any purchase, it is crucial that you know the gold rate on that day before you go to buy. Just as it is in the USA, Dubai has two rates for gold. Price of gold is calculated on 1 gram of gold and prices are displayed on big billboards and at the entrances of the Gold Souks. You might want to note that from April 2018 onwards, The Federal Tax Authority (FTA) of Dubai levies 4 % VAT on gold. This has resulted in the increase in the price of gold.
Learn The Art of Bargaining
A useful tool to use while shopping for gold in Dubai is bargaining. Although the price of gold is fixed, you can haggle your charge down on at the Gold Souks with regards to making charges. How much of a discount you get will depend on how much gold you purchase and how expensive it is, to begin with. You can bargain up to 50% on making charges.
Don’t Be Worried About Fake Gold
Dubai is well known for its gold and the stores set high standards when it comes to selling. It is highly unlikely that you will get cheated while buying gold. Don’t focus or worry on quality and contents of the items. Instead, analyse the craftsmanship and see whether the designs you are paying for are beautiful and with finesse, as well as to your liking.
Some Vendors Buy Old Gold
Some vendors at the Gold Souk are ready to exchange or buy your old gold. While selling your gold, be prepared to answer a lot of questions and if you have any certificates of authenticity, carry it with you. Exchanging your old gold for new can be a good way to upgrade your gold collection without breaking the bank.
Make Payments In Cash
For a seamless shopping experience at the gold souks, try to take cash along with you. Although shops at the Dubai gold souks have the option of paying by credit cards, they usually charge 1-2% extra for this convenience. Carrying cash can saving you thousands or not more when you purchase gold. If you don’t like the idea of roaming around with a lot of cash you can try bargaining with the seller to waive off the added fee when negotiating the price, but it’s not a guarantee that it’ll work.
Keep Exploring The Souks For The Best Deals
The Old and the New Gold Souks in Dubai have many stores selling gold jewellery, therefore, the competition is tremendous. A hard task, but for the best deals, it is best to explore the ins and outs of the market for the best deals. Now, the price of gold is fixed and the only discount you can get on gold jewellery is on making charges, but these can vary significantly from shop to shop. Plus, exploring the markets will let you explore all the beautiful designs on offer and help you pick the perfect pieces to take home with you.
Check For Warranty
Gold is expensive and you will want your jewellery to last a lifetime, maintaining its sheen and not breaking or getting damaged. Sometimes, due to wear and tear, improper storage or an accident, gold can get damaged. This is why you need to check for warranty with the seller. Some jewellers additionally offer free repair services for up to a year on the gold jewellery you purchase.
Check for Gold Purity Hallmark Markings
All gold jewellery has markings on them determining their purity. While buying gold in Dubai or anywhere in the world, check for these inscriptions which indicate the purity of the gold you are buying. The purity of gold jewellery sold in Dubai is ensured by the Dubai Central Laboratories Department (DCLD) through Bareeq Certification.
Know How Much Gold You Can Carry Back
This crucial tip must never be overlooked. Before you purchase jewellery it is important to know how much you can take back to your country. Each nation has different rules, so it is better to check with the respective country’s customs website to avoid paying huge fines.
How much gold can you carry back in India?
In India, men can carry 20 gms of gold at a cost that does not exceed Rs. 50,000 and women can carry 40 gms of gold at a cost that does not exceed Rs. 1,00,000.
Best Time To Buy Gold In Dubai
For the best offers and great deals on jewellery, it is best to shop for gold during the Dubai Shopping Festival (December and January) or the Dubai Summer Surprises (June to August). If you are travelling from India, avoid going overboard as the maximum value of gold you can get back from abroad is up to Rs. 1 lakh for women and Rs. 50,000 for men.
If you can’t make it for the Dubai Shopping Festival or the Dubai Summer Surprises, shop for gold on a Saturday or a Sunday. These are the most stable times to shop and the best part is that prices of gold won’t be traded on international exchanges until 2 am on Monday, so it is likely that you will get a good deal.
Know About Dubai Gold Hallmark Purity
While buying pure gold, there are two things to look out for. One is Hallmark and the other is KDM Standard
What is Hallmark Gold?
Hallmark is a purity standard set to ensure that gold buyers are not cheated. It was laid out in accordance with the Indian standard specifications. Each country has their own official Assaying and Hallmarking Centres to attest and certify if the quality of gold ornaments is to certain standards. While buying gold ornaments always check to see if the jeweller has a BIS certificate.
The Components of a Hallmark Certification
- Jeweller’s Mark
- Fineness Number (corresponding to caratage).
- BISMark
- Assaying and Hallmarking Mark.
- Year of marking denoted by a code letter and decided by BIS (e.g. code letter ‘A’ was approved by BIS for year 2000, ‘B’ being used for the year 2001 and ‘C’ for 2002).
Before you shop for gold in Dubai, make note of these golden rules. They are the basic things you need to keep in mind while shopping in Dubai for gold. If you have any more questions regarding gold shopping in Dubai, feel free to drop your queries in the comments below.