Dubai, the City of Gold has always been well known for its gold trade and dealing. Almost all tourists who visit Dubai like to explore the famous gold market called the Deira Gold Souk, in old Dubai. Souk is an Arabic word for Market and, according to estimation, around 10 tons of gold is present all the time in Gold Souk, Dubai for trade.
The government of Dubai has outdoor signs in all prominent gold trade markets across Dubai that display live gold rates to ensure transparency in gold trading. Authorities also ensure that goods being traded in the market are of the best quality, and that there is no cheating in terms of purity. Dubai so far is well known for the quality of the gold traded in its markets, and any purchases made in Dubai Gold Souk is definitely genuine.
The purity of gold is measured in Carats. (Symbol: K). The 24K gold is considered to be the purest form of gold, while 22K, 20K, and 18K are the lower ranges of purity of gold. 22K gold, for example, has 22 parts of pure gold and 2 parts of other alloys or metals. Moreover, change in carats definitely changes the colour or shade of the gold.
Gold is a precious metal and maintains its value due to its rare availability. If all of the world’s gold is gathered, it would only fill up 3 and a half Olympic swimming pools. A year’s production of world’s gold would be equal to a 16 square feet cube! Prices of gold fluctuate because of many reasons. One of the reasons being, that a country holds currency and gold in their reserves. More gold in a country means it is doing well economically, and people have more money to buy it.
Likewise, prices of gold in Dubai also fluctuate throughout the year. Being one of the cheapest markets for gold trading in the whole world, the prices go up and down almost every day. If we go back in the current year, it started with 128 AED/ Gram (24K gold) on the first of January and has risen constantly since, thus attracting more people to invest in gold. It reached a height of 153 AED/ Gram in the first quarter, and kept increasing gradually. It hit the highest rate in the whole year in July 2016 with a rate of 165 AED/ Gram. The price stayed in 160s for the next 3 months and gradually started falling, and closed at a rate of 136 AED / Gram by the end of the year.
This trend is quite common in Dubai. Usually, the pattern remains the same, wherein the prices keep fluctuating throughout the year, increases in the middle of the year, and gradually settles back to normal. Often in summers, the prices touch new heights. The year opened at a rate of 128 AED / Gram, and closed at 136 AED/ Gram, marking a gain in value of gold from the previous year. So again, the value is expected to touch new heights and close at even higher rates the next year, followed by an increase in prices over the next few years.
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