According to the leading jewelers, the UAE gold jewellery buyers are currently celebrating the significant return on their investments due to the value appreciating by as much as 30 percent more than the past year. Moreover, the steady rise in gold prices has reconfirmed the reputation of the metal as a reliable store of value, especially during uncertain economic conditions.
UAE Gold Jewellery Prices Reach Record Highs
Earlier this month, the gold price in the UAE hit an all-time high. However, 24K gold is trading at Dh456 per gram and 22K gold at Dh422 per gram. Although rates have eased slowly, prices are strong at Dh453.25 for 24K and Dh419.50 for 22K. Similarly, spot gold was trading at $3,759.86 per ounce throughout the world, which shows a 0.53% increase.
This is the remarkable rise as compared to the last year, when the price of 24K gold was priced at Dh322, and the same for 22K was at Dh298 per gram. Thus, investors have seen gains of Dh124 to Dh134 per gram in only 12 months.
Expert Insights: Jewellery vs Investment Gold
Anil Dhanak, Managing Director of Kanz Jewels, said to Khaleej Times that a Dh 5000 purchase of 22K jewellery last year could yield gains of Dh1,000–Dh1,500 today, before deductions. However, he noted that the actual resale profits are often lower, around Dh700–Dh1,200 after making charges, wear, and tear, and design value are factored in.
Another expert said to Khaleej Times that jewellery investors typically see a return of around 15% to 18% based on purity and timing. He said, “Gold is now worth Dh5,700 to Dh5,900 for an investment of Dh5,000 made last year. Even in uncertain times, gold always holds its value”.
On the other hand, another expert highlights that those who have invested in gold coins or bars have gained even more, as these forms avoid deductions related to craftsmanship and resale purity.
A Trusted Wealth Protector
Gold becomes the preferred investment in the United Arab Emirates (UAE), where residents see it as a luxury purchase and a hedge against inflation. Moreover, jewellery buyers enjoy an emotional and authentic value. On the other hand, financial experts suggest coins and bars for maximum returns. Moreover, jewellery believes the UAE investors are going to turn to gold heaven, as the global market is volatile.
Read more:
Dubai’s RTA 119th Number Plate Auction generates Dh 97.95 million
