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-- Posted Thursday, 17 June 2010 | Digg This Article | | Source: GoldSeek.com
 The second limited edition ‘Vision of Dubai’ gold coins are on sale from today featuring the first palm island on the reverse and Sheikh Mohammed bin Rashid Al Maktoum, the visionary Ruler of Dubai.
Demand for gold coins is rising in Dubai although the local recession since the global financial crisis struck in October 2008 has taken its toll on this business as it has on everything else. Fine coins Issued by the Dubai Multi Commodities Centre these fine coins represent a ‘practical, strategic investment opportunity’, according to the dmcc.ae website. Jokalukkas Jewellers is selling the half ounce coin for Dhs2,380, and a quarter of an ounce for Dhs1,235. The present market price for an ounce of gold is around Dhs4,500. However, the first edition of these coins did not sell vey well. Smaller investors in gold in Dubai are now more interested in trading futures on the DMCC’s Dubai Gold and Commodities Exchange. Gold futures represent the largest volume traded on the exchange and are up 15 per cent this year. Futures contracts involve the use of margin so the rewards as the gold price goes up are magnified accordingly, although the reverse applies if the gold price falls. This is not just for big investors. The minimum investment to start trading on the DGCX platform is only $5,000 for gold. DGCX platform To trade gold futures on the DGCX you need to open an account with a registered broker, and supporting documentation includes a passport, bank statement, proof of address and photograph. Choosing a broker naturally requires an assessment of third party risk. Broker commissions are generally around one per cent but higher volumes attract discounts. Trading online in gold contracts is likely to take off as the price of the precious metal increases and particularly if there is another big price hike later this year as experts like Jim Sinclair predict. Such speculation around the gold price is to be expected in a price boom. But trading carries a heavy risk, especially with margin. Indeed, it is the equivalent of property flipping in a real estate boom, and while very profitable early on will eventually turn toxic. Then gold coins will still have residual value while paper gold contracts will expire worthless.
-- Posted Thursday, 17 June 2010 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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New ‘Vision of Dubai’ Gold Coins But Futures Contracts More Popular
