24-04-2025
'Dh39,000 profit': Dubai residents sell gold to fund Haj, weddings as prices hit record high
Many residents are flocking to Dubai's Gold Souk these days — not to buy gold, but to sell — taking advantage of the record-high prices that have pushed the value of the yellow metal to Dh400 per gram.
For some, it is to meet a necessity; for others it's a smart financial decision that they had made over the years.
Absar Ahmed, a long-time Dubai resident living in Al Jaddaf, has sold gold for a larger purpose. He plans to go for Haj this year, and a significant portion of the expenses will be covered by gold he had quietly collected over the years.
'Every six months, I would buy one tola gold bar. By the end of 2024, I had 8 bars in total, which I had purchased at an average price of around Dh2,750 each. Today, the same bar is selling for Dh4,668. I am making a profit of over Dh15,000.'
His wife and children had also saved gold coins over the years from their Eidya and pocket money. 'Together, their collection is worth over Dh50,000 now. We never imagined it would grow this much. So we decided to use this money for something meaningful, and that is for our Haj pilgrimage.'
Amit, a 27-year-old Indian expat from Gujarat, has a similar story. After saving gold for over a decade, he's now using the profits to pay for his upcoming wedding.
'I used to buy gold coins every Diwali and whenever I could save a little extra,' said Harshad. Over ten years, he collected 154 grams, spending around Dh22,000 in total. 'Now, at Dh400 per gram, the value of that gold has shot up to over Dh61,600. I am walking away with a profit of over Dh39,000. This will cover many expenses of my wedding next month.'
While some residents have been saving for years. Momina Azam, a Pakistani expat living in Al Nahda, got into buying gold recently, especially after the Covid 19 pandemic.
'I started four years ago, buying gold coins whenever I had leftover cash,' said Azam. 'I ended up with 69 grams in total. Now, I am selling it for nearly Dh400 per gram, more than doubling my investment.'
For Azam, the sale is but to bring some financial stability. 'I will be clearing off my credit card debt and putting the rest into savings.'
According to traders, this trend is more than just a blip. Affan Sada, a long-time gold trader at Dubai Gold Souk, said they have seen many residents coming in to sell their gold as prices soared.
'Gold has touched the highest rate in history, and many residents who had been quietly investing over the last few years are now cashing in,' said Affan. 'We have seen people selling gold to fund Hajj trips, vacations, weddings, and paying off loans. For many, this is the moment they were waiting for.'
He added that the pandemic years saw a shift in mindset. 'People started seeing gold not just as jewellery, but as an asset. A lot of them used to buy small amounts during festive seasons, and now those small coins and bars are bringing in big money.'
