Lock-in scheme, pre-booking: How UAE jewellery buyers can save on gold shopping

Khaleej Times

24-02-2025

Gold jewellery shoppers in the UAE concerned about high gold prices have several options to reduce or manage the impact of these prices when buying jewellery. Some of the strategies or offers available from Dubai jewellers include pre-booking at fixed prices, opting for instalment plans, saving schemes, availing discounts on making charges and locking in gold rates, among others.
Since prices are expected to stay high due to geopolitical tension and strong demand from central banks, shoppers can take advantage of these offers and discounts to purchase precious metal jewellery before it reaches new highs.
Precious metal prices hit a record this week, rising above $2,950 per ounce. In Dubai, 24K, 22K, 21K and 18K closed at Dh353.75, Dh329.25, Dh315.5 and Dh270.5 per gram, respectively. Analysts expect gold to reach $3,000 in the first quarter of this year and then rise to $3,500 later in the year.
Tawhid Abdulla, chairman of Dubai Jewellery Group, said Buying yellow metal ornaments from trusted jewellers ensures quality and fair pricing, reducing the risk of overpaying during periods of price volatility.
Shamlal Ahamed, managing director of International Operations at Malabar Gold and Diamonds, recommended that jewellery buyers use price lock-in or advance schemes.
"Customers can pay 50 per cent advance to block the gold rate for 3 months or pay 100 per cent to block the rate for 6 months. By enrolling in the advance schemes, customers can buy gold at the blocked rate in case of a price rise and if the price drops, they can draw mileage from the lower rate," said Ahamed.
John Paul Alukkas, managing director of Joyalukkas Group, suggested that the gold jewellery buyers can look into instalment plans. "Purchasing during promotional periods can also help offset fluctuations. Additionally, diversifying their gold purchases by opting for coins or lightweight jewellery may provide stability amidst price changes."
Anil Dhanak, managing director of Kanz Jewels, noted that one of the best ways to navigate price volatility is by planning purchases in advance and taking advantage of instalment schemes, gold savings plans, or pre-booking at fixed prices. "We offer advance booking options, allowing customers to lock in a price and avoid sudden spikes."
Anuraag Sinha, managing director of Liali Jewellery, suggested that gold jewellery shoppers buy during price dips, benefit from jewellers offering price alerts, opt for gold saving plans, and benefit from gold accumulation schemes where buyers can invest small amounts monthly and purchase jewellery at an average price at the end of the tenure.
He strongly advised shoppers to look into making charges because high gold prices mean making charges become a bigger portion of the total cost.
"Many customers are taking advantage of high prices by exchanging their old gold for trendier designs, reducing the impact of rising gold rates," added Sinha.
Chirag Vora, managing director of Bafleh Jewellers, advised shoppers that pre-booking gold at fixed instalment plans and gold savings schemes helps buyers manage volatility and secure purchases without overpaying.
Offers by jewellery to offset impact
Local jewellers are attacking gold jewellery shoppers with discounts, zero-making charges, and lock-in schemes to boot sales. Some shoppers are adopting a wait-and-watch approach as prices trade at all-time highs in Dubai.
Bafleh Jewellers offers flexible payment options, gold exchange programmes, and discounts on making charges to attract customers.
Tawhid Abdulla said jewellers are introducing compelling collections, lightweight jewellery, and exceptional service quality and compliance standards to boost consumer confidence and mitigate the challenges posed by gold price volatility.
"Additionally, local jewellery manufacturing has improved significantly over the past few years, offering consumers a wider variety of high-quality options," he said.
Joyaluklas also offers flexible pricing plans and exchange options, special discounts on making charges. "These measures aim to ensure that customers continue to find value in their investments despite rising prices," added John Alukkas.
Malabar Gold and Diamonds is offering a 100 per cent exchange value on diamond jewellery, its investment potential now matches that of gold, providing customers with enhanced value and flexibility.
Kanz Jewels is attracting shoppers with gold exchange programmes to allow customers to upgrade their jewellery without feeling the full impact of current rates.