ANALYSIS FROM EDITOR’S DESK
Gold continues to be one of the most trusted investments in the UAE, especially as Dubai is known as the “City of Gold.” With gold prices fluctuating but still maintaining long-term value, many residents and investors often ask: is it better to buy gold ornaments or pure gold bars?
Gold Ornaments: Sentimental Value attached with Extra Costs
Gold jewellery is the most common form of gold purchase in the UAE. Buyers are often attracted to ornaments because they serve both as an investment and a fashion accessory. In Dubai, jewellery comes in 18K, 21K, and 22K purity, with 24K being the purest but rarely used for ornaments due to softness.
However, jewellery purchases carry an additional “making charge” – the fee for design and craftsmanship. These charges vary based on brand, design complexity, and goldsmith skill. While ornaments can be resold, buyers may not recover these making charges, as resale value is usually based only on gold weight and purity.
Gold Bars: Pure Investment Choice
For those focused purely on wealth preservation, gold bars and coins are the preferred option. In the UAE, 24K gold bars are widely available from jewellery stores, banks, and certified dealers. Bars come in different weights—from 1 gram to 1 kilogram—allowing flexibility for all types of investors.
Unlike ornaments, bars carry minimal premiums above the market price, as they do not include making charges. When sold back, investors typically receive the full market rate for their weight and purity, making them highly liquid assets.
What Experts Recommend?
Financial advisors in the UAE generally suggest that gold bars suit investors looking for long-term financial security and higher returns, while ornaments suit buyers who want cultural, traditional, or personal use value along with some investment potential.
