UAE: Buying gold for Valentine's Day? Record-high prices keep demand for lighter pieces strong

Khaleej Times

11-02-2025

Some UAE residents are swapping their old gold jewellery with the new amidst record high prices, say jewellers in Dubai. Though big-ticket purchases are put on hold by Dubai jewellery shoppers, small ornaments continue to lead the sales in Dubai.
The yellow metal hit an all-time high of $2,900 per ounce on Monday evening, up over 1.35 per cent.
In Dubai, 24K and 22K jumped to Dh349.5 and Dh325.0 per gram, respectively.
Tawhid Abdulla, chairman of Dubai Jewellery Group, said individuals and short-term investors liquidate some of their gold holdings during price surges to realise profits. However, serious investors hold on to their savings as they have greater confidence in gold, lately.
'Consumers wait for the price to stabilise before making big purchase decisions. However, smaller purchases, particularly tourist shopping will not be affected much by price increase,' said Tawhid.
Anil Dhanak, managing director of Kanz Jewels, said they have also noticed an increase in gold exchange transactions, where customers trade in old jewellery for new designs, leveraging the high gold prices.
'Some investors and traders are cashing in on their holdings, but for most residents, gold remains a long-term asset rather than a short-term commodity for profit-taking,' said Dhanak.
John Paul Alukkas, managing director at Joyalukkas Group, said some individuals are capitalising on the high prices to liquidate their gold assets, while others prefer holding onto their gold, viewing it as a stable investment over time.
Anuraag Sinha, managing director of Liali Jewellery, said: 'Some customers use the proceeds from their gold sales to invest in diamond jewellery.'
Echoing the views of his industry peers, Chirag Vora, managing director of Bafleh Jewellers, said there's a rise in gold exchange transactions, with customers upgrading to new designs.
Demand during Valentine's Day
With Valentine's Day around the corner, the UAE jewellers noted that shoppers prefer lightweight and diamond-studded jewellery with more focus on meaningful gifts that fit within their budgets.
Chirag noted that customers are shifting towards lightweight jewellery, diamond-studded pieces, and personalised designs that offer value while keeping the sentiment intact.
During Valentine's Day, according to Anuraag, the impact of high gold prices is that shoppers tend to seek more affordable jewellery options that still make meaningful gifts. 'Customers prioritise pleasing designs that fit their budget rather than investing in high-value gold pieces.'
John said gold jewellery remains one of the most sought-after gifts for Valentine's Day. 'While high prices may influence some shoppers to opt for lighter or alternative designs, many still choose to invest in gold for its lasting value.'
Anil elaborated that Valentine's Day has always been about sentiment over price, and there continues to be strong demand for lightweight jewellery, diamond-studded pieces, and customised designs. 'Consumers are looking for meaningful gifts that retain their value.'
Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said Valentine's Day doesn't have a major impact on increasing gold prices, as customers typically choose diamond or studded jewellery for gifts.
Tawhid said Valentine's Day collections are usually affordable items and not very high-value pieces. 'We have not observed much impact on occasion-driven sales.'