Some UAE residents earn up to Dh20,000 selling gold as prices surge, reinvest after dip

Khaleej Times

21-05-2025

As gold prices surged to historic highs in April, several UAE residents seized the opportunity to sell their gold holdings, locking in profits of up to 300 per cent. With prices now retreating from their peak, many of these investors are returning to the market, viewing the current dip as the ideal time to reinvest in the precious metal.
Gold prices reached an all-time high of Dh420 per gram last month, but have since dropped below Dh390 per gram as of mid-May. This decline came after easing demand for the precious metal, driven by a trade agreement between China and the US and reduced geopolitical tensions. Globally, gold hit a record $3,500 per ounce in April but recently fell below $3,200.
Asita Thakrar, a Dubai resident for 19 years, benefited from the recent price surge, earning around 15 per cent, or Dh20,000, in just one month from selling her gold bars.
"When I arrived in 2006, the price was around Dh50- 60 per gram. I have been buying gold as a long-term investment. When prices peaked, I sold a couple of gold bars, which were a small part of my collection. In a month, I made around 10-15 per cent profit, or Dh20,000," said Thakrar, a jewellery enthusiast and collector who has never sold her entire collection.
She explained two main reasons for her investment in gold: cultural preference and its value as an easily liquidated asset.
"Gold is an investment that's hard to go wrong with, especially given global uncertainties and the strong demand for it. I never sold gold before, but this time, I knew the price surge was temporary, and it would eventually drop. So, I took advantage of the fluctuation and profited," she added.
Another long-time UAE resident, Bity Babu, a loyal customer of Joyalukkas, regularly buys and sells gold as the price fluctuates.
"I bought gold when the price was just Dh101 per gram, so I benefited both from the low price and new designs. Additionally, I pre-book with the jeweller at a fixed rate, which offers me further advantages," said Bity, a Dubai resident for 15 years.
Re-entering the market
Nishad Ali Theyathil, an Indian national who has lived in the UAE for 20 years, has invested in gold when the price was around Dh60 per gram.
"You can imagine how much prices have increased over the past 20 years. It has been a great help to me as both a family man and an investor. I've invested heavily in gold bars, which helped me build capital over the years. In just one year, prices soared," he explained, adding that gold has been a reliable asset for long-term financial planning, including funding children's education and other family needs.
"I sold some of my gold because prices peaked, and I had to make decisions. Sometimes you need to trade to make gains. Now that prices have dropped, it's the perfect time to buy more with the profits from my previous sales. I am going to re-enter the market," he said.
Jewellers report sale increase
Jewellers across the UAE have reported a noticeable increase in sales following the drop in gold prices from their peak last month.
'We have seen a significant rise in customer interest and foot traffic in our showrooms, particularly from price-conscious buyers eager to capitalise on the current dip in gold prices. This market shift presents an excellent opportunity to buy, and the strong customer response reflects continued confidence in gold as a reliable, safe-haven asset," said Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds.
John Paul Alukkas, Managing Director of Joyalukkas Group, also confirmed a "notable uptick" in gold and jewellery purchases following the recent price correction.
'With prices dropping from their peak, many customers are seizing this as a timely opportunity to purchase, particularly those who have been waiting for the right moment,' he added. 'While the current dip has reignited consumer interest—especially among value-conscious buyers and long-term investors—many experts believe the market may continue to consolidate before the next major price shift. There's also speculation that gold prices could dip below $3,000 per ounce, depending on broader market trends.'