Throughout the centuries, gold has managed to become a profitable investment vehicle for millions of people around the world. Despite geopolitical instabilities, warfare, natural disasters, and economic meltdowns, this commodity has not only survived but has substantially thrived when compared to the world’s leading currencies. During the last 10 years, gold surged 338.21%. Central banks, mutual funds, and regular investors have always diversified their stock and bond portfolios with gold for the purpose of getting a great return on their investment and offset long-term inflationary concerns.
One of the most cost effective and easiest ways to invest in gold is through exchange-traded funds. Essentially, investors can purchase shares that are 100% backed by gold. The Shariah compliant Dubai Gold Securities (DGS) offer investors the ability to purchase shares that are directly tied into the daily spot price of gold. Dubai Gold Securities (DGS) are traded on NASDAQ Dubai under the symbol GOLD, and can be bought through most regulated broker dealers. There is no minimum or maximum transaction size, however, the relative level of commissions charged by your broker or financial advisor may influence the minimum transaction size.
Each Dubai Gold Securities share is equivalent to approximately one tenth of one fine troy ounce of allocated gold bullion. For each Dubai Gold Security in issue there is a corresponding amount of gold held in the vaults of the Custodian. The issuer (DGS LLP) has designated HSBC Bank to act as the independent custodian of the London based vault that stores all investor gold bullion. As of July 2010, there are 50,000 securities in issue that represent 13 uniquely identifiable London good delivery bars which are being held for investors by the custodian. DGS LLP also assesses a reasonable management fee and offers full website access to daily investor gold bar holdings. The Shariah Supervisory Board conducts regular audits of all DGS operations as well as performs physical inspections of the vault to insure continuous compliance with Islamic Law.
DGS LLP offers retail investors the unique and affordable opportunity of buying and selling gold without incurring the enormous costs associated with physical metal bar maintenance and insurance. To invest in gold through Dubai Gold Securities during these turbulent times will undoubtedly add considerable value to any portfolio. It’s important to keep in mind that gold is not affected by national fiscal policies. Most economic cycles are sensitive to non-discretionary spending, inflation or corporate sector earnings and as a result, currencies have always experienced a steady decline in purchasing power and will continue to do so in the near future.
However, gold carries no credit risk and is highly liquid. This makes it possible for investors to engage in 24 hour trading at the Nasdaq Dubai Exchange, capitalize on price fluctuations and easily increase or decrease their market exposure, as they deem necessary. Wise investors who are interested in preserving their wealth and establishing an effective hedge against the inflation should look no further than investing in gold.