Which are the best practices for investing in gold in Dubai, e-gold or physical gold?

e-gold is at risk if the issuer of e-gold does not redeem it as promised.  Physical gold requires a safe deposit box to avoid risk of burglary in the home, but there is still a possibility that safe deposit boxes can be robbed.

Yes i agree with PGroot E-gold is risky in this time because e-gold investment is not profitable but physical gold is best investment scheme in this time because physical gold price increased day by day so if you investing in gold then you get good return.

Precious metals trading is a bit unusal in that you must take "hard delivery" of your metals, have them verified before purchase by a licensed assayer, and then secure them yourself.  That may not be as difficult as it sounds: bank safety deposit boxes are the ideal safeguard for bullion coins and investment-grade gems.

"E-trading" of course is reserved for licensed professionals in the US as the market could conceivably be diverted and abused.

Gold bullion coins that trade easily are Krugerandes, American Eagles, and Canadian Maple Leaves.  Other coins may be subject to question: Mexican and other coins are gold plated brass, passed off as investment grade trade coins like Eagles.  These coins are strictly to be avoided as no expert trader will ever accept them.

Magnetic test machines spot fakes instantly.  That is always to your benefit.  Never take investment coins or bullion coins without testing them.