Free Gold Coins, Vouchers: UAE Jewellers Cut Profit Margins To Offer 'Fair Price'

Some gold jewellers in Dubai and the UAE are squeezing their profit margins to offset the impact of record-high gold prices and make precious metal ornaments more accessible to shoppers.

Jewellers said“fair pricing” is aimed at stimulating demand amidst dwindling sales, and shoppers are benefitting from reductions in making charges, free coins, and vouchers to offset the impact of precious metal touching unprecedented highs.

Gold touched an all-time high on Tuesday with 24K hitting Dh440.5 per gram, while 22K rose to Dh408 per gram. Prices retested the same record high on Friday. Prices eased slightly over the weekend, with 24K trading at Dh438.75 per gram, 22K at Dh406.25 per gram.

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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. It dropped to $3,643.1 per ounce over the weekend.

Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, emphasised their commitment to fair pricing.

“By prioritising value without compromising on quality or design, we ensure that our customers enjoy an exceptional jewellery buying experience, even during periods of price fluctuation,” he said.

Anuraag Sinha, managing director of Liali Jewellery, said there is evidence that gold jewellers in the UAE are reducing profit margins to support shoppers grappling with record-high gold prices.

“Several UAE jewellers have cut down on making charges, a key component of retail pricing, to maintain sales volumes amid soaring gold prices. These reductions are designed to ease the purchase burden for consumers. Some retailers have gone further by offering straight discounts of 25 per cent-or more-on making charges. Amid slowing sales and high retail volatility, jewellers are shrinking their profit margins voluntarily to keep business afloat. This balancing act helps stabilise demand even when margins are slim,” he said.

To offer fair pricing, Sinha added that many jewellers offer free gold coins, vouchers, or price-lock guarantees.

“Some retail campaigns and weekend sales feature zero per cent making charges - especially on older or slower-moving inventory collections. This directly lowers the final bill, allowing shoppers to still afford jewellery even when gold prices are at record highs. Also, many jewellers also offer gold exchange with zero deduction, meaning shoppers can upgrade without penalty.”

He said shoppers are, indeed, benefitting from these initiatives.

Citing an example, he said on a 20 gram necklace, a 25 per cent cut in making charges can save hundreds of dirhams.

He added that because the gold rate is uniform, the only major difference shoppers experience is in the making charges where retailers are currently offering big reductions.“This ensures shoppers aren't overpaying for the gold content itself-they're mainly saving on the craftsmanship premium.”

Discounts are sometimes tied to minimum spends such as Dh3,000 to Dh7,500, and not all shoppers benefit equally.

Aditya Singh, head of international jewellery business at Titan Company, noted that there's a shared understanding across the industry that long-term customer trust outweighs short-term margins.

“Jewellers are carefully balancing quality and pricing by streamlining internal costs, offering promotional pricing on making charges, and enhancing the overall value proposition without compromising craftsmanship,” he said.

He added that the company is focused on offering competitively priced products to meet both the aesthetic and budget expectations of customers.

“While price sensitivity is expected, the desire to commemorate special moments with fine jewellery remains strong,” Singh said.

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