6th Sep. 2016
Making the decision on which products to buy when it comes to physical Gold and Silver can be difficult for first timers. There are 100s of physical Gold and Silver products that come in different sizes, weight and purity. At leaf.ae, we have come up with a summarized list of the best products to buy in the United Arab Emirates, and internationally, and we will emphasize on products that will maximize your investment returns, while minimizing your costs. However, it is worth mentioning that diversification is essential when owning Gold and Silver. Owning a combination of bars and coins of both precious metals in different sizes and weights will have a better investment outcome than owning only one specific type and size. We highly recommend that you include both metals in your portfolio instead of focusing only on one.
Let’s start with Gold (24k). Your purchase of this precious metal will entirely depend on your budget. If your budget is above AED 18,000 (current market price for 10 tola bar), we recommend you go for the 10 Tola Gold Bar by Credit Suisse or other international brands. This product is hand-stamped and its our favorite at leaf.ae for two main reasons: 1- It is popular in the UAE and India with the lowest premium. 2- It is the easiest Gold product to sell in the market as it is highly in demand. The product can be sold at many shops in the Gold Souq and at our website leaf.ae. The 10 Tola bar contains 3.75 ounces of .999 fine Gold and displays the name Credit Suisse or Pamp (focus on well known brands). The top three countries that are familiar with the 10 Tola bar are: India, Singapore and Pakistan. Another special thing about this item is that it can be stored and carried anywhere due to its small size and weight!
If your budget is lower, you should consider purchasing the 1 ounce bars or coins. If you plan to purchase bars, keep in mind that you would be in a better position if you target well known international brands such as PAMP and Credit Suisse rather than local brands, but there is no harm if you go for the latter. When it comes to coins, leaf.ae recommends two brands: 1 oz Gold Maple Leaf and 1 oz Gold American Eagle, both backed by Canadian and US governments. Those coins are not only minted by government-backed mint companies but are also internationally recognized and are the most purist forms of Gold coins, accepted anywhere in the world.
When it comes to Silver, we highly recommend that you include this precious metal (more so than Gold) in your investment portfolio. Not only is it affordable, but it is also undervalued, so take advantage of such low prices, because at leaf.ae, we believe such prices will not remain low for long. There is a huge upside opportunity in Silver in the next few years. For a budget of more than AED 2500, we highly recommend Silver Kilo bars .999 (Emirates, Etihad or international brands). What is special about the Kilo bar is similar to the 10 told Gold bar, they both have lower premiums compared to other products and you will be able to maximize your gains. You will need proper storage if you plan to buy a large amount as they are heavy and require space. You can also easily sell Silver Kilo bars in the Gold Souq or at leaf.ae.
If your budget is lower than AED 2500 (current market price for 1 kg), we recommend you buy 1 oz, 5 oz and 10 oz Silver bars and 1 oz coins (avoid purchasing coins that are smaller than 1 oz due to high premiums). Always target international brands for such products and we recommend you buy uncirculated Silver coins. The top two coins that we recommend are the 1 oz Silver Maple Leaf and the 1 oz Silver American Eagle for the same reasons we mentioned in the gold section above.
We hope you gained something from this post and feel free to contact us if you have any questions. We are here to guide you on how to become your own Central Bank.
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