Gold prices fall, UAE sees surge in buying of jewelry and coins

Residents of the United Arab Emirates (UAE) are planning new purchases as gold prices fall ahead of Diwali and Dhanteras. Some are looking to buy gold coins, others are opting for lightweight jewelry, while others are thinking of selling or replacing old jewelry lying around at home or in bank lockers.
On the other hand, some are keeping an eye on market fluctuations and are also checking the prices available at institutions when selling or exchanging old gold.

According to gold traders, the festive atmosphere and the recent price drop have created renewed interest among buyers and sellers. Demand for gold usually increases during this time.

Rishi Bhai of gold trading firm SellYourGold.com said that when gold prices fall sharply, buyers and sellers react differently. Some who were waiting for prices to rise further are now eager to sell. Others are holding onto gold in the hope that prices may rise in the future.

He said, "Buyers are generally interested in buying when prices fall. Buyers are currently very interested in the market as there is an opportunity to buy gold at a lower price."

According to Bhaya, with Diwali, Dhanteras and Christmas just around the corner, the current market situation seems attractive to those who were already thinking about buying gold.

Due to changes in gold prices, buyers are now doing more calculations than before when purchasing jewelry.

Amreen Iqbal, founder of Piece of You Jewelry, said that many buyers are using the money by selling old jewelry that they have not used for a long time. Some are buying small jewelry with that money, while others are choosing jewelry with light and aesthetic designs suitable for everyday use.

He said that when the price of gold is high, buyers are more conscious about spending. Many are selling unused jewelry lying in lockers. Others are using that money to buy smaller or lighter jewelry.

Iqbal added that buyers are now comparing gold prices, asking about the terms of returning or exchanging old jewelry, and considering gold not as an immediate purchase, but as a long-term asset.

According to him, the cultural significance of buying gold during festivals still remains intact. However, there is a growing interest among buyers in gold coins, bars and light everyday jewelry.

On the other hand, Rishi Bhaya advised to be careful when buying new jewelry to replace old ones.

He said, "Instead of selling old jewelry and buying new jewelry from another store, it is better to complete two transactions through the same gold merchant. Because if you sell and buy from two different institutions, you have to pay a profit margin on both transactions. This can cause financial loss to the buyer."

He also advised people to be aware of how the price of stone-set jewelry is determined and how prices fluctuate due to differences in gold purity.

However, for many UAE residents, buying gold during Diwali is not just a matter of price fluctuations. It is part of their family and cultural tradition. The custom of buying gold on Dhanteras, an auspicious day, still holds special significance for them.

UAE resident Manju Arora said she buys gold every year on the occasion of Dhanteras. But this time, instead of jewelry, she is thinking of buying a few gold coins.

He said, "Diwali or Dhanteras are very auspicious times to buy gold. Every year I buy some gold. This time I am thinking of buying some gold coins. They are easy to store and can also be a good investment for the future."

Another resident, Bhavya Rao, is keeping an eye on the fluctuations in gold prices, but is more interested in buying lighter jewellery this Diwali.

He said, "The price of gold is fluctuating. So I am monitoring the market price before buying. I want to buy a lightweight piece of jewelry for Diwali."

Source: Khaleej Times