Record-High Gold Prices: UAE Residents Turn To Saving Schemes, Investing For Children's Future

With gold prices reaching record highs and expected to remain elevated in the near future, UAE residents are increasingly turning to gold savings schemes and investing in the precious metal, particularly to secure their children's futures.

Gold touched an all-time high last week as 24K hit Dh440.5 per gram, while rose to Dh408 per gram. Prices retested the same rates over the weekend, and eased slightly, with 24K trading at Dh438.75 per gram, 22K at Dh406.25 per gram.

Spot gold rose past $3,650 last week amidst expectations around the US interest rate cuts, weaker US jobs market, central bank buying, among others.

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Anuraag Sinha, managing director of Liali Jewellery, said there is evidence of an emerging trend in the UAE among both expatriate and national parents to invest in gold for their children.“This includes both purchasing gold as a traditional gift and using it to instill financial values early on.”

“ One mother shared that she's building a collection of 18K gold jewellery for her young daughter - not just as an investment but as a sentimental heirloom. Lightweight gold is especially popular among parents purchasing gifts for young children, showing this tradition persists even amid economic sensitivity,” said Sinha.

Gold savings schemes in the UAE typically allow residents to contribute a fixed monthly amount, which can later be used to purchase gold jewellery. In many cases, jewellers contribute an additional amount at the end of the scheme, enhancing the overall value for customers. These schemes enable residents to convert regular savings into a tangible, liquid asset - ideal for auspicious occasions or emergency financial needs.

In many Arab and Indian households, buying and saving gold for children is a deeply rooted cultural tradition that transcends generations. Gold is seen not only as a symbol of wealth and status but also as a secure financial asset that retains value over time, making it an ideal form of savings.

Parents often purchase gold jewellery or coins for their children during significant life events such as births, weddings, or religious festivals. In both cultures, gold serves as a form of financial security, especially for daughters.

Additionally, with rising economic uncertainty and inflation, families in these regions increasingly view gold as a stable, long-term investment to ensure their children's future stability and prosperity.

“There has been a noticeable increase in enrolments for gold saving schemes, as families view them as a disciplined and rewarding way to secure future purchases,” said a spokesperson for Joyalukkas.“These schemes are particularly valued for weddings, children's future needs and festive shopping, offering peace of mind and a structured path to investing in something timeless and meaningful.”

The spokesperson also commented on the culture of gifting gold jewellery and coins to children, calling gold“a symbolic and sentimental choice for generations to come.”

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