As gold rates continue to climb higher, gold shops around the UAE have seen a huge surge in sales. Retailers have said that multiple reasons — including the rising prices, an influx of tourists and attractive offerings — have prompted a buying spree.
According to experts, one of the main reasons why there has been an increase in sales is because of the expectation that prices will go higher. “We have seen a notable spike in sales in the recent past,” said Chairman of Nishka Jewelry.
According to Shamlal Ahamed, managing director – international operations at Malabar Gold & Diamonds, the answer depends on people’s circumstances. “This is wedding season, so many people will have a limit to how long they can hold off without buying,” he said
“A significant contributing factor has been the rising trend of gold prices. The market dynamics, including an upward trajectory in gold prices, have created increased demand for our products. We have observed a slight decrease in the weights purchased whereas a drastic increase in the walk-in customers. As investors and consumers seek to capitalize on the favourable market conditions, our offerings, which include gold-related products, have experienced heightened interest.”
“No one can predict what’s up next for gold,” said Anil Dhanak, Managing Director of Kanz Jewels, who was absolutely shocked by the latest surge pricing. “Gold prices are beyond control for the moment.I keep telling all the time – gold buyers will need to adjust their expectations of what the prices would be. And I keep telling them to spend on gold, the one asset where depreciation doesn’t come into play. I wish more people would listen – gold is the ultimate safe haven.”
On Wednesday (December 6), the first UAE gold rate for the day was set at Dh227.75 a gram for 22K. The all-time high is Dh235. The high gold levels could be there until December 12/13, which is when the US Federal Reserve has its next meeting on interest rate decisions. Any signal on when it might start dropping rates could be the next price stimulant for gold.
Tourist shoppers in the UAE will not be swayed by today’s price soaring, according to Dhanak. “They would come to the store, see something they like and for them the only price that matters is what would be the price difference between gold buying in Dubai and what’s there in their home market,” he said. “And then they make the purchase…”
Aside from Deira Gold Souk, the famous market for gold in Dubai, you can find many other gold shops in Dubai including:
