UAE: Buying gold for Valentine's Day?
Jewellers in Dubai report that UAE residents are exchanging their old gold jewellery for new pieces due to unprecedented price levels. Dubai jewellery shoppers delay large purchases but continue to buy small ornaments which dominate the sales.
On Monday evening gold reached its highest price in history at $2,900 per ounce and saw an increase of more than 1.35 percent. In Dubai the price of 24K gold increased to Dh349.5 per gram while 22K gold reached Dh325.0 per gram.
Tawhid Abdulla who is the chairman of Dubai Jewellery Group noted that both individual and short-term investors sell portions of their gold assets when prices rise to gain profits. Serious investors now show more confidence in gold so they continue to keep their savings.
People wait until the prices stabilize before deciding on major purchases. Tawhid stated that price increases will have minimal impact on smaller purchases like tourist shopping.
The managing director of Kanz Jewels, Anil Dhanak, observed that their company is witnessing more gold exchange deals where clients exchange their old jewelry pieces for new designs because of the elevated gold market prices.
While certain investors and traders are liquidating their gold assets for immediate profits, many local residents still consider gold as a long-term investment option rather than a short-term profit-making commodity according to Dhanak.
The managing director at Joyalukkas Group John Paul Alukkas observed that high prices motivate some individuals to sell their gold assets, while others choose to keep their gold because they consider it a dependable investment.
Anuraag Sinha, managing director of Liali Jewellery, said: Customers are purchasing diamond jewellery using the money gained through their gold sales.
According to Chirag Vora who leads Bafleh Jewellers, his industry colleagues agree that gold exchange transactions have increased and customers are now choosing to move to new jewellery designs.
Demand during Valentine’s Day
As Valentine’s Day approaches UAE jewellers have observed that customers seek lightweight diamond-studded jewellery which offers meaningful gifts within their financial limits.
Chirag observed that buyers are now favoring lightweight jewellery designs along with diamond embellishments and custom options which provide good value while maintaining their emotional significance.
Anuraag reports that shoppers look for affordable jewellery that holds meaning during Valentine’s Day due to high gold prices. Customers are choosing designs that match their budget limits instead of spending on costly gold pieces.
According to John gold jewellery continues to be a popular choice for gifts during Valentine’s Day. Despite higher prices leading some buyers to select lighter and different designs, numerous customers stay committed to purchasing gold because of its enduring worth.
Anil explained that Valentine’s Day gift choices prioritize emotional significance over price leading to sustained popularity for lightweight jewellery and diamond-studded pieces with customised designs. Customers want gifts that hold significance along with enduring value.
Customers prefer diamond or studded jewellery for Valentine's Day gifts which explains why this occasion does not significantly affect gold prices according to Shamlal Ahamed from Malabar Gold and Diamonds.
Tawhid explained that Valentine’s Day collections generally consist of items that are affordable and lack high value. Occasion-driven sales seem to remain unaffected according to our observations.
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