Dubai: Dubai gold traders clarified that contrary to what some Emgoldex clients believe, you can only make money by selling gold when the price is high after buying it at a lower price.
“You will earn money from gold only from buying and selling gold. But it’s not going to earn that much within a short period of time unless the price of gold really goes up relative to the buying price. But gold has to be traded to actually make or lose money,” said Pradeep Unni, head of trade and research at Richcomm Global Services DMCC, a Dubai-based international commodity services company registered with the Dubai Multi Commodities Centre (DMCC) and a broker and clearing member of the Dubai Gold and Commodity Exchange (DGCX).
“No money is generated in just storing gold, unless you trade it. It will even cost you money to cover for the vault and storage cost,” Unni said.
Unni said the safest way to invest in gold and make money is trading through regulated or registered brokers where the person is investing.
Pankaj Gupta, regional manager of SMC Comex, also a registered broker in Dubai, said traders make money from the price movement of gold, which works very much like trading stocks.
“If you’re investing in any internet-based company, you must ask yourself this question: If something goes wrong, where will I go to get my money back? Which authority should I complain to?” Gupta told Gulf News, adding that online stores can just close down very easily.
“Whenever we’re dealing with any business for any transaction, if there is a dispute, under which law can we hold the person responsible?”
Gupta said he studied the Emgoldex scheme and arrived at one conclusion: “As a client, I am zero per cent secure with my investment.”
“This is essentially a chain. And in schemes like this, whenever the chain breaks, your money is stuck.”