UAE: Dubai gold jewellers hope Eid Al Fitr, Indian festivals will increase sales
Gold jewellers in UAE are hopeful that sales will be helped by festivals like Eid Al Fitr and Indian festivals Akshaya Tritiya, Gudi Padwa as prices near record levels in Dubai and world-wide.
Bookings for Akshaya Tritya are already underway, jewellers said, with several implementing schemes and discounts to capitalise on the buying momentum in the season.
The metal was priced at $3,046.49 at 3:00 PM Thursday, an increase of 0.95 per cent on the day. 24K, 22K, 21K and 18K version of the metal were priced at Dh365 in Dubai. 75, Dh338. 75, Dh324. 75 and Dh278. 25 per gram, respectively.
According to Ramesh Kalyanaraman, executive director of Kalyan Jewellers, customers see gold as a long-term investment irrespective of the fact that prices have gone to an all-time high.
A glimpse of festivities during Akshaya Tritiya that witnessed a lot of auspicious and big purchases in gold especially, is here, and especially we know how important this day is for the gold lovers, so we have come up with a 10 per cent advance booking plan for our customers, so that they can ensure their booking of gold at current rates, as the price increment goes into effect before the festival begins. Kalyanaraman added: "In continuation to give more benefits, giveaway offers of up to 2gm gold coins on their purchases are also being announced, making this the best time to shop.
Rohan Siroya, CEO of Siroya Jewellers Retail Division, said Ramadan and Eid were large gifting occasion drivers within religious calendars.
Gudi Padwa and Ugadi, according to the Hindu calender, occur roughly at the same time as Eid. Next is one month long Akshaya Tritiya buying. So now it’s a bonanza. Bookings have already begun for Akshaya Tritiya," said Siroya.
Ugadi and Gudhi Padwa will be celebrated on March 30, while Akshaya Tritiya will fall on April 30. Likewise, Eid probably starting on March 31 in UAE.
We lock the gold rate one month prior which is an absolute boon to consumer. This is the trend now even gifting happens a lot during this season of Ramadan. Gold price is on the higher side and, as a result, we saw consumers coming back to buy some lightweight pieces and so on while in diamonds, prices have corrected and there is some demand for diamonds. It is better to buy diamonds when you get an opportunity, so why not — Siroya.
Jay Patni, CEO of Jewel Dubai, says a marginal gain of 1-5% is expected from the ongoing festival of Akshaya Tritiya since the consumer demand is coming strong in line with the peak precious metal price continues at all-time high level recently.
Some people simply shift some percentage of their investment into gold, just as a way to protect themselves for a certain time of volatility,” he told MarketWatch. Patni said, "They believe this is a safe and this will increase in value later, rather than keep their money in the bank or splurge on luxury goods.
Sales increase at the end of the month of Ramadan because more people acquire jewelry made of precious metal for the celebration of Eid, he further added.
Similarly, Jewel Dubai has also brought in a lock-in promotion for shoppers ahead of the festivities.
Bafleh Jewellers managing director Chirag Vora said the historical high price of the metal has seen a slight decline in sales.
The new pricing is upto consumers to readjust to it and that takes time. A month is not sufficient; they generally take 2-3 months to digest it," he told IANS, adding that during the Akshaya Tritiya festival, it's also when Bafleh brings in the promotions for shoppers and tourists.
Akshaya Tritiya “is always a good time of the year for gold jewellers in Dubai, he added. Vora said, "The month of Ramadan becomes a bit slow, but Eid season hits up.
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