With Valentine's Day approaching, high gold prices are influencing jewellery shopping trends in the UAE. While big-ticket purchases have slowed, demand for lightweight, diamond-studded, and personalised jewellery remains strong, as shoppers look for meaningful yet affordable gifts.
Gold Prices Reach Record High
On Monday evening, gold prices surged to an all-time high of $2,900 per ounce, pushing Dubai’s 24K gold to Dh349.5 per gram and 22K gold to Dh325 per gram.
According to Tawhid Abdulla, Chairman of Dubai Jewellery Group, many short-term investors and individuals are liquidating gold holdings to take advantage of high prices. However, serious investors continue to hold their gold, viewing it as a stable asset.
“Consumers wait for price stability before making major purchases, but smaller purchases, especially by tourists, remain steady,” he explained.
Jewellery Exchange on the Rise
Jewellery traders have noted a rise in gold exchange transactions, where customers trade old jewellery for new designs.
- Anil Dhanak, Managing Director of Kanz Jewels, highlighted that many residents see gold as a long-term investment rather than a short-term profit-making asset.
- John Paul Alukkas, Managing Director of Joyalukkas Group, said some individuals are cashing in on high prices, while others continue to hold gold as a safe investment.
- Anuraag Sinha, Managing Director of Liali Jewellery, observed that some customers use the proceeds from their gold sales to invest in diamond jewellery instead.
Valentine’s Day Shopping Trends
Jewellers report that with gold prices soaring, shoppers are shifting towards lighter, more affordable, and stylish jewellery options for Valentine’s Day.
- Chirag Vora, Managing Director of Bafleh Jewellers, said lightweight jewellery, diamond-studded pieces, and customised designs are trending, offering value while preserving sentiment.
- Anuraag Sinha noted that customers prioritize design and affordability over heavy gold pieces, making smaller, elegant jewellery a preferred choice.
- John Paul Alukkas emphasized that despite high prices, many still opt for gold jewellery due to its lasting value.
“Valentine’s Day is about sentiment over price, so lightweight and meaningful pieces continue to be in demand,” added Anil Dhanak.
Diamond Jewellery Gains Popularity
According to Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds, Valentine’s Day does not significantly impact gold prices. Instead, customers tend to choose diamond or studded jewellery as gifts for the occasion.
Conclusion
Despite record-high gold prices, the UAE’s jewellery market remains active, with a shift towards lighter, diamond-studded, and custom designs for Valentine’s Day gifts. Whether shoppers exchange old jewellery for new or invest in smaller yet meaningful pieces, gold remains a cherished gift choice, symbolizing love and lasting value.
