A growing number of UAE residents and tourists are heading to the Dubai Gold Souq to exchange old jewellery for gold bars. In addition, they aim to secure the best possible rates before the potential price drop.
Over the past few days, jewellers have reported an unexpected rush from shoppers who recently came back from the summer holidays. Surprisingly, people are opting to swap their old pieces for gold bars instead of buying new ornaments because they see them as a safer long-term investment.
Why the Sudden Rush to Exchange Old Jewellery for Gold Bars?
After a brief dip to Dh370.25 before climbing back to Dh372.25, the gold price in Dubai remains above Dh370 per gram. In addition, the price trend has investors on edge because the bullion is trading at $3,339 per ounce globally. Moreover, the international gold rates have dropped by more than $40 an ounce over the previous 30 days, which suggests further cooling.
Market experts say that if geopolitical tensions, like the Ukraine-Russia conflict, ease, the price of gold could also drop further. So, it is expected that the rates could reach Dh 360 to Dh 350 per gram. Therefore, this fluctuation is forcing UAE investors to lock in value now by converting jewelry into gold bars.
Jewellery Retailers Taken by Surprise
The local retailers in the UAE have confirmed that the increase in exchange has exceeded expectations. A staff member at a leading Dubai gold retailer said, “Many buyers were clear about their goal – they did not want new jewelry. This demand shows the growing awareness among the UAE residents of the potential of gold as a long-term wealth safeguard.”
Another retailer said that what we are experiencing now could be the beginning of a fresh wave of bar investment in the UAE. A new investor base is growing.”
A Shift in Investment Trends
Traditionally, UAE shoppers preferred ornamental jewellery. However, the growing global uncertainty and the steady appreciation of gold over decades have created a shift towards bullion. So, people are seeing the gold bars as more liquid because they are easier to store and free from making charges. Thus, it makes them an attractive option for residents and international visitors.
Analyst advises that the long-term value of gold remains strong, but the short-term volatility is unavoidable. So, now is the right time to act for those who are thinking about exchanging their jewelry.
Read more:
Yuzvendra Chahal and Dhanashree Verma opened up about their divorce
[…] UAE Residents Rush to Exchange Old Jewellery for Gold Bars Amid Price Fluctuations […]