Gold jewellery, bars, coins – What’s a smarter spend for UAE residents?
The UAE offers one of the best environments in the world for buying gold
Dubai: For many UAE residents, gold isn't just a luxury—it’s a way to save, invest, or pass on wealth. With Dubai being one of the most competitive and trusted gold markets in the world, choices are everywhere.
Whether you're walking through Deira Gold Souk, scrolling through offers on apps, or visiting a mall jewellery store, you’re likely to come across three main options: jewellery, gold bars, and coins.
But which one actually makes the most financial sense?
Gold bars, coins: Smartest, pure investment
If your main goal is to invest and grow your wealth over time, gold bars and coins are typically the smarter pick. Here's why:
Higher purity: These forms usually come with 24K purity (99.9%), stamped and certified.
Lower premiums: Bars and coins are closer in price to the actual market rate of gold (the "spot price").
Easier to track gains: Unlike jewellery, there are no making or design costs added—so your investment starts closer to the metal's real value.
No VAT for tourists: For visitors, buying gold bars or coins in Dubai also offers VAT refunds—making the purchase even more attractive.
That said, coins and bars are better suited for long-term holding. Selling them can sometimes take longer, especially for larger bars or items without a clear purchase history. Many dealers prefer to buy back only what they’ve sold, and may require certificates or receipts to verify authenticity.
Jewellery: Dual-purpose choice with caveats
Jewellery is popular in the UAE for a reason—it’s beautiful, meaningful, and often passed down through generations. But when it comes to investing, it comes with some trade-offs:
Making charges: This is the added cost for the craftsmanship behind each piece. It can be significant and is not recoverable when you sell.
Wastage charges: Tiny amounts of gold are lost during melting and crafting, and retailers pass this cost on to the buyer.
Resale value: You may only get 70–80% of the melt value when selling, depending on wear and tear or market conditions.
Not just about gold value: You're paying for design, brand, and artistry—not just metal.
You may have seen offers like "zero making charges" on gold jewellery. While tempting, these deals are often used to clear old stock or come with fine print. Producing quality jewellery involves skilled labor, safety standards, and tools—it’s unlikely to be truly “free.” In the long run, quality and ethics may take a hit under such offers.
What about resale? Who buys it back?
Selling gold in the UAE isn’t always as simple as buying it. Bars and coins can be sold at 90–95% of the current spot price—provided they’re in good condition and come from reputable sources. But buyers might hesitate if you don't have the original invoice or certificate.
Jewellery, on the other hand, is more liquid—you can walk into many stores and get a quote quickly. But because you paid more upfront (due to design and making costs), recovering your investment is harder, especially if gold prices haven’t significantly gone up.
Know the price gap: Buying vs. Selling
Many buyers are surprised to learn that selling gold doesn’t always give you the price you expect. Why?
Buy-sell spread: Gold dealers make money on the difference between what they sell it for and what they buy it back at.
Premiums and deductions: Coins and bars may include minting costs, while jewellery has additional deductions due to condition, design, and labour.
Typically, the spread can be 8–10% for coins and bars—and even more for jewellery.
Bottom Line: What should UAE buyers do?
If you're investing: Stick with gold bars or coins. They are easier to value, store, and hold long term.
If you want to wear and enjoy your gold: Jewellery still holds sentimental and cultural value, but treat it more as a luxury purchase than a financial investment.
If you're watching for deals: Be cautious of “zero making charge” offers. Ask questions and understand what you're really paying for.
The UAE offers one of the best environments in the world for buying gold—but making the right choice depends on what you're looking for. Whether it’s wealth building, gifting, or just treating yourself, knowing the trade-offs can help you get the most value from your purchase.
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