Apart from it being the festive season, the increased sales of gold in Dubai can be owed to the low prices currently. With Dh137.25 ($37 USD) per gram of 22 carat, and Dh144.50 per gram of 24 carat, residents and tourists have been flocking the jewellery stores.
The drop in prices can be attributed to low global demand. Prices in New York, which largely determine international rates, have declined after speculation that the US may increase interest rates on the back of an improvement in the labour market.
“Sales have definitely risen. Last year, this time the price was low too and business has picked up. Indian tourists usually ask for chains and bangles in 22 carats and European tourists prefer trinkets in 18 carat”, says Guru, shop in-charge, Popley Kewalram Jewellers LLC.
Accoridng to Guru, UAE locals too have hit the stores to make the most of the low rates. “The local designs are a big hit right now”, he says.
While the Asian buyers prefer yellow gold, European customers are more likely to go for white gold.
Bipin Joshi, Senior Sales Executive, Navrang Jewellers says, “It is the season for tourists in the country, and the low rates have affected our sales well. We don’t know how long it will last, but there has been a grown interest in buying gold jewellery.”
More than buying gold jewellery as a fashion statement, with delicate designs, currently sellers have also noticed an increased sale in simple, but heavy jewellery. Linto Paul Chiramel, Assistant Showroom Manager, Joyalukkas says, “Buyers are looking at heavier ornaments now that the price is low. The Indian community has been buying gold as an investment. Not many look towards designer jewellery now; it’s just the basic jewellery like bangles and chains. Even the Europeans and Americans have shown interest in gold as an investment.”
Buying Trends
The Germans find 18 carat white gold bracelets more appealing, while Australians prefer necklaces and rings. On the other hand a tourist from Colombia cites, “I think the jewellery here is a bit expensive.”
The Asian community prefers 22 carat in yellow gold. A buyer said, “I am here to buy heavy bangles in yellow gold. I might purchase white gold if I find something good.”
