The Gold Rush Explained: Why Do People Buy Gold?

By middle April 26, 2019 15:33

The Gold Rush Explained: Why Do People Buy Gold?

Diamonds may be a girl’s best friend, but, for some, gold’s the clear winner.

Regardless of high or low prices, gold shops are full of customers not just looking for jewellery but also for a smart way to invest a few thousand in the form of gold coins or bars.

Gulf News spoke to some UAE expats who love to invest in gold, to find out why they buy the yellow metal.

It is considered auspicious

According to Afshan Hunaid, a Pakistani expat based in Sharjah: “For South Asians buying gold is culturally considered auspicious in the region. So, on different occasions we buy gold.

A good way to save

The Pakistani businesswoman added: “It’s also a form of saving, as the resale value of gold is good, you can sell it anytime, anywhere, you don’t lose more money as compared to jewels.”

Her relatives and friends have always used gold as a means to save up: “I have seen my grandmothers and older relatives in the olden days buying a lot of gold so they have something for rainy days to come. They have tried to pass down the habit and teach me the tactics too. However, I haven’t passed down the habit to my children.”

Afshan feels that diamonds can be a good investment only if they are bigger in size and of good quality and cut. She, however, added: “Unlike gold, diamonds cannot be sold anytime, anywhere without losing much money.”

Indian expat, Vidya R. agreed: “Diamonds may make you feel rich, but to me, they are not as precious as gold. Whenever I go to a jewellery shop, I notice, it is easy to get discounts on diamonds but never on 22 or 24-carat gold. I didn’t know much about the value, but this pattern was enough for me as a buyer to conclude that yellow gold is more precious and worth more than diamonds. The liquidity of gold is high.”

A safe investment in the long run

The 35-year-old human resources freelancer added: “I have invested in coins in the past and that helped me later. When my husband and I were in a dire financial emergency, we were able to use our gold before thinking of borrowing. I would suggest if you are not very keen on jewellery, at least buy coins. On any given day, I would prefer to spend my spare money on a gold coin instead of the latest expensive phone. I have always benefited from my gold purchases.”

Love for the precious metal

Vidya feels gold is beautiful. She added: “It is an investment method that you can enjoy and utilise later. I feel gold jewellery makes a statement.”

Lavina Q, a Dubai resident also loves gold. She said: “I was always fond of gold and used to buy a lot of gold jewellery. It was never with the intention to save. It was only because I loved wearing it.”

The value increases

Sharjah expat Vibitha Sanjith agreed: “Usually we buy gold especially, coins, as an investment so that we can exchange it for money when the need arises.

She feels that gold is a good commodity to invest in: “When we exchange gold, usually the jewellers buy the gold as per the current rate. It may have been bought at a lesser rate. If you consider the last 20 years, you notice that the rate of gold has increased tremendously, so, I hope it will increase in the future too.”

Courtesy: Gulf News (Click here to read the full story)



By middle April 26, 2019 15:33
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