Dubai would be cheaper. some tips for buying gold in dubai
Dubai is one of world's best places to buy gold--quality is controlled by the government (so you can be sure of what you're buying), you'll find unlimited designs to choose from if you're buying jewelry, and you can exchange your old gold jewelry for new.
The gold souk (market) in Deira has hundreds of shops selling gold and jewelry. The price of gold is predetermined--in every shop, the price set for the day by the government will be displayed. You can check this easily.
Make sure your receipt states the quality and weight of the gold--don't rely on what the salesman tells you.
If you're buying jewelry, the salesman usually taps a few buttons on his calculator to come up with a standard price, maybe even doing you "a favor" with a discounted price.
Ignore this--ask him to split the cost of the piece between the cost of the gold and the cost of the craftsmanship (both are calculated by weight, i.e. per gram). Both costs added together, multiplied by the weight of the gold, should be the total cost. I always ask for a pen, paper, and calculator, to check the math myself--this is normal in Dubai.
As I said, the price of gold is set, so your bargaining room is for the craftsmanship. The salesman will start off charging 7 to 10 dirhams per gram (the dirham is pegged to the U.S. dollar at a rate of $1 = 3.67 dirhams). With haggling, you can reduce this to between 2.5 and 6 dirhams per gram, depending on the level of craftsmanship--in rare cases, you will pay more for intricate work done by hand.
If you're selling your old gold jewelry, the dealer will pay you for the gold only--you get nothing for the craftsmanship. He will deduct 2 to 4 dirhams per gram from the official gold price as his margin. If you visit a few shops, and negotiate both buying and selling prices, the net difference can become quite marginal--you can transform your old jewelry into new jewelry for a steal.
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