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Top Silver Investment Options Available in Dubai

According to SilverPrice, the rate of silver has risen to a staggering 70 AED / ounce in the last 20 years. It’s an investment that has historically proven its worth, especially during economic uncertainties. Take the 1979 Oil Crisis for example —-  where silver prices soared by a whopping 154.25 % according to the Guardian. 

So, it’s obvious that silver is a safe haven asset that protects you against economic uncertainties. But what are some simple avenues for silver investment, how should you begin your silver investment?  and most importantly — why is 2024 the best time to invest in silver? Read this article to find the answers to all these questions.

Silver Bars 

Silver bars are one of the simplest forms of investment to grow your wealth in the long term. You don’t need to be an expert investor to buy silver bars. Nor do you have to learn complex terms and concepts to be able to get good returns. Yet, it offers decent returns in the long term. When we compare the price of silver per 10 grams from last year to the price of silver per gram today, it has grown to 10%. However, keep in mind that the price of silver keeps fluctuating yet it only grows in the long term. 

Moreover, there’s no value-added tax on investment-grade silver bars in Dubai. This means that every dirham that you invest in silver bars — grows in the long term and you get a return on the full amount of your investment. 

Hence silver bars are the most sought-after silver investment option in Dubai.  It comes in different quantities to meet all the ticket sizes. Whether you want to invest 16 AED, 400 AED or even more, it’s a feasible investment avenue for everyone. 

Just make sure to check the purity certificate to verify if it meets the stated purity and weight. To be on the safer side, buy silver bars from reputable shops in Dubai Gold Souk.  It’s a plus if the dealer offers you guaranteed buyback to ensure a secure investment. 

Silver coins 

Silver coins are an equally straightforward investment option. Just like silver bars, the value of silver coins also rises with the increasing price of silver. Plus, silver coins offer high liquidity, especially in Dubai because of the availability of so many shops and dealers willing to buy it. 

We recommend buying silver coins from Anjali Gold (gold and silver bars/coins shop) as they provide guaranteed buyback of your investment at a competitive market price. 

Silver coins come in smaller to bigger denominations making them accessible for every budget. Additionally, some silver coins are collector’s items —- also known as numismatic silver coins,  whose value increases even more with its rarity. 

However, buy collectable silver coins with proof of authenticity only. Otherwise, you might get counterfeit silver coins which may not be that valuable.

Silver bullion 

Silver bullion are those coins and bars that are minted by government refineries with strict regulations on their weight. Additionally, silver bullion is characterized by a legal tender value attached to it in addition to its precious metal content. 

Some examples of silver bullion coins include the American Silver Eagle, Silver Britannia Coin, and South African Krugerrand among others. These silver bullion coins are highly valued all over the world for their purity, mint and historical significance. 

If you want to invest in silver bullion, buy it from official distributors only. This will ensure that you get authentic products from renowned refineries of the world. 

Silver ETFs (Exchange Traded Funds) 

Silver ETFs let you buy a share of silver without the need to buy physical silver. This option may look convenient but it has its own set of challenges. First of all, it operates within the stock market which can be really confusing if you are a beginner. 

Plus, you need to understand the market, check the prices and then sell your investment after figuring out the right time. Overall, you need to be in a trader’s mindset and not an investor’s mindset to invest in silver ETFs. 

Moreover, silver ETFs often involve additional fees that you pay to the broker and some additional operational costs. So while it may be feasible if you have a high-risk profile, you might not want to consider it if you are looking for safer silver investment options in Dubai. 

Why 2024 is the best time to invest in silver? 

  • Firstly, a report by Silver Institute suggests that silver use in industries will go up by a whopping 4% in 2024. The growth would be mainly the result of industries like solar panels and electric cars needing more silver. 
  • Both industries — solar panels and electric cars will continue to drive increasing demand for silver in the long term. 
  • According to the University of New South Wales, solar panel production could utilise up to 85–98% of the current global silver reserves by 2050. 
  • The electric vehicle industry is also expected to grow its sales from 23% to 50% resulting in increased demand for silver. 
  • So, the demand for silver is only going to rise in future. This means that the price of silver will also rise according to the demand and supply principle
  • When we connect all data points, it suggests investing in silver now to make better returns in future. 

Conclusion

Silver appears to be the safe and lucrative investment option, giving decent returns with minimal risk. You could invest in silver bars, silver coins, silver bullion or silver ETFs with —- silver bars being the best choice. As we mentioned earlier, there’s no VAT on silver bars, making it the best way to invest in silver in Dubai. 

Next comes silver coins because of their low ticket prices. Fortunately, both of these investments are easily accessible in Dubai as it is home to two of the biggest precious metals markets in the UAE — Meena Bazaar and Gold Souk.

So, if you are in Dubai, visit these markets and make your silver investments today. Because according to experts, 2024 is the prime time to invest in silver as the market is projected to grow in the coming years. 

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