Most notably, setting the goal of purchasing and the right products
7 standards for saving and investing in gold coins and bullion
Gold is touted as a safe haven for investment. Archives
Tawheed Abdullah: "The largest shares of purchase should be concentrated in bullion, because it is the most feasible for investment objectives."
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Dubai Gold and Jewelery Group stated that there are several criteria that dealers must take into account before deciding to save and invest in gold bars and currencies, in order for them to be able to achieve the desired goals of the purchases.
(The group) indicated to "Emirates Today" that the most prominent of these criteria can be summarized in seven steps: Determining the purchase goal and the appropriate products for those goals, with the importance of choosing the appropriate timing for buying and selling.
Gold products
In detail, the Chairman of the Dubai Gold and Jewelery Group and Director of the Jawhara Group, Tawheed Abdullah, said that “dealers wishing to go to savings or to invest by purchasing gold products from bullions and currencies, they must observe a number of criteria that support the desired objectives of buying and not Going to buy randomly, ”pointing out that“ gold products are considered appropriate tools in different circumstances and times for savings and investment operations, regardless of any variables that international markets go through, which makes gold described as a safe haven for investment. ”
He added that «one of the most prominent criteria, which can be summarized in seven steps: Determining the goal of the purchase because that will depend on him to determine the appropriate products. If the goal is only to save, according to the financial budget, currencies or bullions can be purchased from small weights that can be less than 100. Gram, with the ease of reselling some of these products when needed, and not having to sell them all if they are in the form of large ingots.
Buy bullion
Abdullah pointed out, “If the aim of the purchase is to focus on investment, then it is better to focus on buying alloys of all kinds and weights, and it is preferred, whenever possible, to buy large weights so that appropriate returns are given when reselling them. The appropriate investment in alloys starts from 250 grams to what More than 500 grams, and bullion is faster and easier to sell, and the profits for traders who buy back them are less compared to currencies, and therefore bullion is the best for investment purposes.
He continued: “One of the characteristics that distinguish bullion in investment operations is that it does not impose tax fees on it, being 24 carats, unlike currencies that impose tax fees on it, being the most traded in the market.”
Timing of purchase
Abdullah pointed out that «choosing the timing of the purchase is an important matter, whether for saving or investment, it is not logical that the price limits are at significantly high rates and the demand for purchase is carried out. Therefore, before going to buy, prices must be monitored continuously and the timing of the large and stimulating declines in demand. On the immediate purchase ».
He stressed that «in cases of investment orientation, dealers can pay attention to what is called (interim investment), meaning that bullion is purchased when financial capabilities are available, as appropriate investment returns are achieved whenever you can get larger quantities of bullion and not just one or two bars.
He said, "Investors can diversify by buying currencies, but taking care to make the largest shares of purchase concentrated in bullion, because they are the most feasible for investment goals."
Abdullah stressed that the most important criterion for investment operations in gold is not to rush in the sales process, and to follow up reports on the opportunities for the rise or fall of gold prices according to the global markets on which the sale of bullion is determined, because the rewarding investment in gold bars depends on the characteristics of long-term investment. , Compared to other types of investment, and therefore it is important that investment operations in gold be accompanied by investments in other areas, so that the focus is not only on the speed of sale to obtain returns quickly.
He added that «the important criterion in investment operations is to choose the appropriate timing opportunities for resale, to seize the best prices through which good profits can be obtained from investment operations, which are commensurate with the waiting period and compare them with the prices at which they were bought».
He explained that the dealers can also make a comparison in the selling prices of the stores to choose the most suitable for them, because the profit margins of the stores differ according to the marketing policies of each store.
The most prominent standards of savings and investment
1- The aim of the purchase.
2- Determine the products.
3- Choose the timing of the purchase.
4- Interim investment.
5- No-rush policy.
6- Selling opportunities.
7- Market differentiation.
Coins or bars can be purchased from small weights if the goal is only saving.
Gold products are suitable tools in various circumstances and times for savings and investment.