Lock-in Scheme, Pre-Booking: How UAE Jewellery Buyers Can Save on Gold Shopping

From price lock-in schemes to pre-booking offers and gold savings plans, shoppers have multiple avenues to mitigate the impact of soaring prices while ensuring they get the best value for their investments.

Gold Prices at Record Highs

The price of gold has been steadily climbing, with rates exceeding $2,950 per ounce in global markets. In Dubai, the current market rates stand at:

• 24K gold – Dh353.75 per gram
• 22K gold – Dh329.25 per gram
• 21K gold – Dh315.5 per gram
• 18K gold – Dh270.5 per gram

Analysts predict further increases, with expectations of gold reaching $3,000 per ounce in the first quarter of the year and potentially climbing to $3,500 later in 2025.

How UAE Jewellery Buyers Can Save on Gold Purchases

1. Lock-in Price and Pre-Booking Offers

To combat price volatility, jewellers are offering gold rate lock-in schemes that allow customers to book their jewellery at a fixed rate.

Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds, explains:

"Customers can pay 50% in advance to lock the gold price for three months or 100% to secure the rate for six months. If prices rise, buyers benefit from their locked-in rate, while a price drop allows them to adjust to the lower cost."

This ensures that buyers do not miss out on favorable pricing despite fluctuations.

2. Instalment Plans for Budget-Friendly Purchases

Many jewellery brands now offer instalment plans to help buyers distribute their payments over time.

John Paul Alukkas, Managing Director of Joyalukkas Group, advises:

"Purchasing jewellery through instalment schemes during promotional periods can offset market fluctuations. Customers can also consider coins or lightweight jewellery for added stability amid price changes."

3. Gold Savings and Accumulation Plans

For those looking to plan their gold purchases, gold accumulation schemes allow customers to invest small amounts over time and purchase jewellery at an average market price.

Anuraag Sinha, Managing Director of Liali Jewellery, recommends:

"Buyers can benefit from gold savings plans, price alerts, and accumulation schemes, which enable them to spread their purchases over time and secure jewellery at competitive rates."

4. Discounts on Making Charges and Exchange Offers

Many retailers are attracting buyers with discounts on making charges, zero-making charge offers, and exchange programs.

• Bafleh Jewellers provides flexible payment options, gold exchange programs, and reduced making charges.
• Malabar Gold & Diamonds offers a 100% exchange value on diamond jewellery, making it a competitive alternative to gold investments.
• Kanz Jewels promotes gold exchange programs, allowing buyers to upgrade their jewellery while minimizing the impact of high prices.

5. Trading Old Gold for New Designs

Jewellery retailers are also encouraging customers to trade in their old gold for modern designs.

Anuraag Sinha notes:

"Many buyers are leveraging the high gold prices by exchanging old jewellery for trendier designs, reducing their spending while upgrading their collection."

Jewellers Respond to Market Challenges

With gold prices fluctuating at historic levels, jewellers are adapting to the market by enhancing their offerings.

Tawhid Abdulla, Chairman of Dubai Jewellery Group, emphasizes:

"Jewellers are introducing compelling collections, lightweight designs, and high-quality locally manufactured jewellery. These measures ensure fair pricing and maintain consumer confidence."

Meanwhile, John Alukkas highlights:

"Flexible pricing plans, exchange options, and discounts on making charges help customers find value despite rising gold prices."

Conclusion

Despite high gold prices, UAE shoppers have multiple strategies to secure the best value on jewellery purchases. Pre-booking, instalment plans, price lock-in offers, gold savings schemes, and exchange programs provide opportunities to manage costs effectively. By leveraging these options, customers can continue investing in gold without overpaying in a volatile market.