Last Updated: January 23, 2023, 13:53 IST
The cost of gold in Dubai remained stationary for the second day in a row on January 23 in the morning trading session. Despite no change in prices in Arab Emirates Dirham (AED), those using Indian Rupee (INR) to make their purchases will notice a difference in the price tag due to fluctuating exchange rates between INR and AED. As of 10:23 am on Monday, Dh 1 was valued at Rs 22.07.
According to Gold and Jewellery Group’s data, a gram of 24-carat gold in the City of Gold cost Dh 233.25 or Rs 5,152.12. The price of the 22-carat variety for the same quantity was Dh 216 or Rs 4,762.23. In the morning trading session on Monday in the United Arab Emirates (UAE), the rate of 21-carat and 18-carat gold also stood still at levels last recorded. While a gram of 21-carat gold cost Dh 209 or Rs 4,607.90, the price of 18-carat gold stood at Dh 179.25 or Rs 3,957.09. An ounce of the yellow metal in Dubai cost Dh 7,072.09 or Rs 1,56,255.33. A kilogram of silver, on the other hand, cost Dh 2842.18 or Rs 62,754.54.
Buyers from all parts of the world flock to Dubai in large numbers every year to make their gold purchases. This is especially true of Indians, who often buy the yellow metal on festive occasions such as Diwali, Dhanteras, and weddings. Gold markets such as Baniya Street, Meena Bazaar, and Gold Souq in the Gulf Tiger are popular destinations for making gold purchases because of the wide variety of designs they have to offer at comparatively low rates.
Gold in Dubai is much cheaper than in other parts of the world because of a couple of reasons:
The government of the UAE does not levy any taxes on the purchase of gold ingots or bars.
The value-added tax (VAT) of 5 percent on gold jewellery is one of the lowest in the world. This, too, is waived off for tourists once they present their foreign passports.
Due to cheap labour available in the country, the making charges are comparatively lower. Buyers can also negotiate on these and bring them down considerably.
Moreover, because the gold market in Dubai is well-regulated and highly monitored, it offers quality assurance to customers. Sellers are obligated under law to present hallmark certificates to customers if asked. The Dubai municipal body also conducts regular inspections to ensure no malpractices are taking place.
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