Dubai is sometimes called the “City of Gold” because of its stunning transition from an unknown village to one of the fastest growing cities in the world, synonymous with prosperity and free trade.
Dubai is already one of the world’s biggest centres for trading gold and handles a throughput of around a fifth of global annual gold production. Most recently the Dubai Multi Commodities Centre (DMCC) has launched a gold exchange traded fund to capitalize on this status, but trading has been in very limited volume thus far.
The DMCC has built the largest vault in the UAE in 2009. The vault is used for storing precious metals and uses the latest security equipment and inventory management systems. The new vault is intended for both short and long term storage of precious metals and other high-value products.
Dubai has a long history of providing advanced infrastructure for new business and financial opportunities, and the opening of new storage vaults for precious metals seems to be yet another example.
Dubai’s tax-free status has made it one of the cheapest places in the world to buy and store gold. The low cost of storage is touted as a main reason why you should hold your gold there.
Investors are increasingly looking to move their real assets away from established financial centres for fear of seizure in times of economic emergency. But when you consider just how dependent those nations on the west side of the Gulf are on the U.S. for their security and often current structures, you quickly see how Dubai will succumb to pressure on U.S. citizen’s assets held there…