UAE: Gold Jewellery Shoppers Gain Up To 30% Some Sellers Earn Dh1,200 Profit

Gold jewellery buyers in the UAE have seen their investments appreciate by up to 30 per cent over the past year, thanks to a steady increase in gold prices.

Anil Dhanak, Managing Director of Kanz Jewels, noted that if someone had purchased Dh5,000 worth of 22K gold jewellery a year ago - considering only the gold metal component - they could now be sitting on a gain of 20-30 per cent, or approximately Dh1,000 to Dh1,500, before any deductions.

However, he cautioned that returns vary depending on several factors, including timing, karat, and the proportion of the price attributed to gold versus design and making charges.

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“After accounting for making charges, wear and tear, resale deductions, the actual profit is often lower - more like Dh700-Dh1,200, depending on how good the resale purity is and how much value was lost in the design/craftsmanship,” added Dhanak.

Gold prices reached an all-time high in the UAE earlier this month, with 24K and 22K gold selling for Dh456 and Dh422 per gram, respectively.

Prices have since eased slightly in line with global market trends. On Sunday, 24K was selling at Dh453.25 per gram, while 22K stood at Dh419.50. Meanwhile, spot gold was trading at $3,759.86 per ounce, up 0.53 per cent.

In comparison, during the last week of September last year, 24K and 22K gold were priced at approximately Dh322 and Dh298 per gram, respectively. This represents a rise of around Dh134 per gram for 24K and Dh124 for 22K over the past year.

Chirag Vora, Managing Director of Bafleh Jewellers, stated that a customer who purchased Dh5,000 worth of gold jewellery last year would have realised gains of around 15-18 per cent, depending on the timing, purity, and making charges involved.

“Their gold is now worth approximately Dh5,700 to Dh5,900. This shows that even in uncertain times, gold always holds its value,” he said.

Anuraag Sinha, Managing Director of Liali Jewellery, noted that those who invested in gold years ago - or who own gold coins or bars - are now seeing even higher returns.

“Others may get less favourable resale value for intricate jewellery due to making charges, purity, design, etc,” said Sinha.

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