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UAE: sales of gold jewelry are increasing despite the prices reaching record highs

Despite gold prices reaching record highs on Thursday, gold jewelry sales in the UAE have increased. Retailers in Dubai report that consumers are still buying gold and precious metal jewelry, anticipating further price hikes in the coming months.

Gold prices surged to a record $2,300 an ounce early Thursday morning, marking a 9% increase in March alone. In the UAE, the 24K gold variant reached Dh278.25 per gram, with 22K, 21K, and 18K trading at Dh257.5, Dh249.25, and Dh213.75 per gram, respectively, on Thursday morning.

John Paul Alukkas, managing director of Joyalukkas Group, noted that sales have risen despite the high prices. Customers are motivated to buy now rather than wait, fearing further price hikes. The perception of gold as a stable investment during economic uncertainties also contributes to increased sales.

Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, stated that despite the upward trend in prices, customer footfall and sales in their UAE showrooms remain high. This could be due to purchases related to Eid and other festivities, as well as the introduction of a 10% advance payment offer, which allows customers to lock in the gold rate without worrying about fluctuations.

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Doesn’t affect tourists

Gold and jewelry retailers mention that high gold prices do not significantly impact tourist buying behavior in Dubai, as the city offers a wide range of designs and comparatively lower gold rates than their home countries. However, resident consumers may adopt a wait-and-watch approach during price hikes.

Overall, tourists benefit from exploring international jewelry collections in Dubai, along with the added advantage of 0% VAT, making gold and jewelry shopping enticing despite price fluctuations.

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