Buying Gold in the City of Gold

Buying gold has become a popular option for investors in the U.S. due to a continued weak economy that threatens stocks and other traditional investments. For precious metals investors gold represents one of the most reliable and time-tested means of investing and protecting financial resources. In these days, one of the best places to invest in gold is in Dubai.

Dubai has earned a reputation as the gold capital of the Middle East as well as one of the most prominent places for gold trading in the entire world. The precious metal is so important to the Dubai economy and way of living that the city of Dubai has gone so far as to trademark their marketing slogan, "City of Gold". One walk through any of Dubai's gold souks provides all the explanation one would need.

Gold prices in Dubai can change on an hourly basis due to the heavy traffic. The city and emirate both import unimaginable amounts of gold from India, resulting in low prices for foreign investors who then export the metal elsewhere. This is reflected in a constantly changing gold rate hour by hour, day by day.

So lucrative is the market in Dubai foreign investors using Forex for gold investment must be constantly on their toes, remaining ever apprised of where the price is at all times. Forex is risky to begin with, but it's multiplied with Dubai gold because the price moves so quickly.

Perhaps that's one of the reasons trading in gold is so popular among the world's high-profile investors. The same excitement a harness racing enthusiast might experience at the track is also shared by the gold trading professional. Those ups and downs of the daily market bring with them exhilarating highs and devastating lows. It's all part of the game.

For the amateur investor looking to break into the world of finance gold rate information can sometimes be deceiving. While gold prices have steadily increased over the last several decades, they have been trending lower in Dubai recently. Analysts attribute much of that decline to slumping sales in gold jewelry over the last few months.

The good news is that the annual Dubai Shopping Festival is just a couple of months away. Jewelers should be increasing their gold inventories for both straight sales and jewelry production. We should see the gold rate begin a gradual climb through the end of the year for that reason.