GOLD PRICE HITS A TWO YEAR LOW: BEST TIME TO INVEST IN GOLD-comments regarding the drop-in gold rate by Mr. Shamlal Ahamed, MD – International Operations, Malabar Gold & Diamonds,
The volatility in gold rates that the market is currently witnessing presents a great opportunity for potential shoppers looking to invest in gold. As of today , the gold rate has fallen to AED 189/gm for 22K, which is a two year low since March of 2020.
The sudden fall in prices has been due to a 0.75% hike in federal interest rates by the USA, which had a cascading effect on the international gold rates. However, it is a valid assumption that this window of opportunity which has presented itself to the customers will be short lived and once the market stabilizes, the prices will shoot up again. Considering a global economic slowdown that is on the horizon, the position of Gold as a safe haven asset will be further solidified in the times to come.
During the pandemic, gold rates had climbed as high as AED 235/gm in August of 2020, showing how the depreciation is almost always short-lived. There is almost a 20% decrease in prices compared to the highest post-pandemic gold rate, which was AED 234.50/gm in March of this year, which further establishes the fact that this is the best time to purchase gold. As the value of INR continues to slip further, it is a wiser choice for Indian expatriates to invest their assets in Gold due to its ever-increasing value, rather than the usual practice of sending money back to their home countries.
Dubai’s longstanding stature as the city of gold has resulted in an increased spend by tourists on gold. The low gold rates in the UAE is especially attractive to Indian tourists, as the prices here are 12-15% cheaper compared to that in India.
In line with the upcoming festive season and to protect customers from any further fluctuation in prices, Malabar Gold & Diamonds has introduced ‘Pay 10% Advance’ offer. Customers can block the prevailing gold rate until the 23rd of October by paying just a 10% advance. If the gold rate goes up during this period, they can purchase gold at the booked rate and if the gold rate falls further, they can draw mileage from the low rate. The advance can be paid at any of our outlets across the UAE or at the comfort of your home through our Mobile App. As the wedding and festive season draws near, we have also introduced a dazzling array of festive jewellery collection to add more sparkle to all your celebrations.