UAE: How Gold Jewellery Shoppers Beat Record High Prices In Dubai

(MENAFN- Khaleej Times) Published: Mon 26 Aug 2024, 6:00 AM

Gold and jewellery shoppers in the UAE are leveraging various options - such as monthly saving schemes, loyalty and reward programmes, trading in old gold, flexible payment options and credit card offers - to offset the impact of record-high prices of the precious metal.

With the Gold prices in Dubai staying above Dh300 per gram, gold jewellers in Dubai said the demand for such programmes and schemes has increased as shoppers are adjusting future purchases of precious metal jewellery to beat high prices.

The yellow metal prices reached an all-time high earlier this month, hitting $2,550 an ounce globally and Dh306.75 per gram in Dubai. The prices closed at $2,512.18 per ounce globally and Dh304.25 per gram in Dubai – trading above the key psychological barriers.

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Analysts and gold jewellers expect further increase in prices in the coming days due to escalation in Middle East conflict and expectations around the US Federal Reserve decision to cut interest rates.

Anuraag Sinha, managing director of Liali Jewellery, said people are increasingly subscribing to monthly saving schemes and loyalty programmes to better manage their finances, mitigate the effects of gold price volatility, maximise the value of their purchases, and achieve their long-term goals.

“Loyalty programmes and saving schemes indeed provide significant advantages for shoppers looking to buy gold jewellery during periods of high prices. They offer ways to earn rewards, access discounts, and manage spending more effectively, which can help mitigate the financial impact of rising gold costs. As a result, many people are increasingly turning to these programmes to cope with the financial challenges posed by record gold prices,” Sinha told Khaleej Times.

He elaborated that gold and jewellery buyers are coping with record-high prices by choosing lightweight designs, leveraging saving schemes and loyalty programmes, waiting for sales, or trading in old gold.

The jeweller offers a variety of loyalty programmes and saving schemes such as Club Liali, tie-ups with Emirates airline for Emirates Skywards and rewards programmes with different retailers.

Ramesh Kalyanaraman, executive director at Kalyan Jewellers, said with gold prices at record highs, customers are navigating the situation with strategic buying.

“Our loyalty points' programme has gained significant popularity among customers, helping them manage their finances while enjoying exclusive benefits. Customers use their loyalty points earned through previous purchases to offset a portion of their gold purchase, effectively reducing the overall outflow. Through our loyalty programme, higher-tier members often enjoy additional perks like discounts or exclusive offers, providing further savings,” he said.

“We've observed buyers are also becoming more selective and intentional with their purchases. They are choosing pieces that are timeless which allow them to maximise the value of their investment. We additionally have flexible payment options and credit card offers, which aid their buying power,” he said.

The UAE jewellers have various schemes and loyalty programmes to reward their customers with flexible payment solutions, additional discounts, exclusive offers, credit card offers to aid buying power.

Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said they offer two such plans – Jewellery Purchase Programme and Gold Rate Protection – for customers to beat the latest surge in gold prices.

The Jewellery Purchase Programme allows customers to invest in their desired jewellery through manageable monthly payments, starting from as low as Dh200. This programme enables customers to plan and budget their jewellery purchases over time, rather than making a large, one-time expenditure.

Gold Rate Protection allows customers to lock in the current gold price by paying an advance on their purchase. With an advance payment of 50 per cent of the gold's value, the price can be secured for three months, while a 100 per cent advance allows customers to fix the price for six months.

“The added advantage of this facility is that the customers always stand to benefit, regardless of the direction in which the prices fluctuate, i.e., if the gold price goes up during the time of purchase, customers can purchase their jewellery at the booked rate and if the price drops, customers can draw mileage from the lower rate,” said Ahamed.

“Together, these programmes provide a robust safety net against fluctuating gold prices,” he added.

Shamlal Ahamed elaborated that despite the steady rise in gold rates over the past few months, customers remain largely unfazed by the current market hike.“The consistent appreciation in gold's value has bolstered confidence in it as a reliable asset, reaching an all-time high. This growing trust explains why, despite elevated prices, customers continue to buy gold,” he added.

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