Avoid the same mistake Dubai buyers did when trying to buy gold

littlejohn16 (46)in #gold • 2 years ago (edited)

Investing in gold is not that easy to do. Sometimes the window of opportunity is too quick to disappear. Dubai investors certainly feel this way after they miss an opportunity to buy more gold for their portfolio. Guffnews reported that on Friday (September 2), the UAE gold rates opened at Dh193.50 a gram for 22K, which is very close to last year's lowest price of Dh191.75 on July 21. However, not many buyers can use this opportunity to buy gold.

Source: Guffnews

Dubai gold investors who were hoping for the price to remain stable through the weekend (when global commodity markets are closed) were left disappointed by when gold closed within an hour or two to Dh195. The speed of movement in bullion terms is more disappointing for them, from $1,697 at ounce levers, up to $1,712-$1,716 after the US reported better than expected job numbers. This obviously means that they lose an opportunity to probably buy gold at the lowest point this year.

Not only gold investors but even retailers are also being affected by this. A jewelry retailer in Dubai stated that the gold price movement cause a decrease in trade activities during the weekend, which left tourist customers as their sole buyers at this time. A slight movement in price is unsurprisingly a huge deciding factor between enthusiasts or investors to trade gold. Retailers who are looking for customers to buy at the morning low point will also have to wait.

It is not fair to direct the blame to retailers or retail investors for their lack of foresight on this matter. In fact, analysts were thinking along the same lines. Most of them believe that a decrease in dollar strength, interest rate hikes and global inflation would depress gold prices to $1,650 or more. In addition to that, they also believe that even if the US jobs data showed strong movement, it would not be enough to overturn gold’s downward pull. Turns out that was just a theory, while reality says otherwise.

The sudden spike in gold prices caused many analysts to believe that retail buyers will wait for more opportunities. Most of them believe that the next big trade will happen on and around October 22, when the Indian festival of Diwali is marked. Historically, this festival is one of the busiest periods for gold trades in UAE with tourist buying activity also seeing a nice increase. A retailer stated that buyers will likely book a price between Dh190 to Dh199, as earliest as possible to avoid being locked out and forced to wait another day to buy.

Source: Digital Gold

What happened to Dubai gold investors is not exclusive to them. There are a lot of cases where buyers missed an opportunity to buy gold because the market is closed, their broker has a very long time to process their orders, and so on. What they can do to solve this issue is to use another method to trade gold.

There are several solutions, such as buying a gold fund, participating in private trade, and also using gold-backed crypto to trade gold. Digital Gold is one of the providers that they can use. On top of providing a gold-backed crypto token that is secured with a gold vault, they can also trade anytime on the Digital Gold market. This will solve their problem of being locked out and missing an opportunity when a trading opportunity arrives, while at the same time removing excess fees from paying the third-party brokers.

At the end of the day, the market is evolving, and buyers should follow and change the way they trade.

This article is written by joniboini.

#crypto #silver #bitcoin #etf #ethereum