Many UAE Residents Sell Gold, Silver To Pay Off Loans, Buy Properties

2026-02-01 11:29:21

(MENAFN- Khaleej Times)

In Dubai, 24K gold prices hit a record high of Dh666 per gram on 29 January but slumped Dh76.5 per gram to Dh589.5 per gram over the weekend

PUBLISHED: Mon 2 Feb 2026, 6:00 AM UPDATED: Mon 2 Feb 2026, 7:40 AM

By:
Waheed Abbas

Taking advantage of record-high gold and silver prices, many UAE residents and investors sold their holdings to make down payments to buy property and pay off their credit card loans.

In Dubai, 24K gold prices hit a record high of Dh666 per gram on Thursday but slumped Dh76.5 per gram to Dh589.5 per gram over the weekend. Similarly, the other variants also slipped from their record highs on Thursday, with 22K, 21K, 18K and 14K selling at Dh545.75, Dh523.25, Dh448.5 and Dh349.75 per gram, respectively.

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Spot gold slipped to $4,893.2 per ounce, down 8.14 per cent, at the weekend. It hit an all-time high of $5,500. The prices slipped due to the dollar getting stronger after the appointment of Kevin Warsh as the new chief of the US Federal Reserve.

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UAE residents and investors rushed to sell their gold and silver as prices plunged, as there were long queues of sellers outside the Dubai Gold Souk on Thursday and Friday.

Shehzadi Rehman - a Dubai resident for over 29 years - recently sold her old gold jewellery to take advantage of high gold prices, making 25 per cent profit from the sale.“One of my sisters also sold a very old bracelet, and she got almost double the price. A lot of people are selling old jewellery gifts that they no longer wear. So, they're taking advantage of high gold rates and selling to invest in other investment avenues. I have a friend who had lots of gifts during the wedding, and when the value was so high, she sold them so she could actually pay a down payment for foreign investment and property purchase,” said Shehzadi, an interior designer.

She believes that the latest panic selling was due to investors shifting their investments into other asset classes, such as real estate.

“People have many ornaments that they don't wear for a longer period of time, so this is an opportunity for them to sell and pay off their debts. It's the best opportunity right now to sell and pay off credit card loans,” she added.

Property prices in Dubai, especially in Dubai, have been consistently rising over the past five years, giving double-digit returns to investors. Though the market is steadying and slowing down, it is still giving better returns than many other major cities around the world.

Moreover, many long-term tenants are also transitioning to ownership to offset the impact of high rental prices.

Mayank Dudeja, a Dubai resident, also sold a large chunk of his silver and gold portfolio during the recent rally and crash.

“I sold off 35 per cent of my silver holdings at $94 an ounce. I have been selling silver in small quantities even after $94,” he said.

From the UAE investors' perspective, he pointed out that it was purely peer pressure buying and selling due to the FOMO factor.“But the latest sell-off on Thursday was driven by the fear that silver could drop 70 per cent, prompting residents to sell their holdings.”

Dudeja cautioned that many people were investing in gold and silver based on the information they were receiving through social media.

“When prices plunged on Thursday, many people on social media advised residents to sell their holdings, and that resulted in panic selling,” he said, adding that people didn't sell their entire gold and silver portfolio and still held onto a good amount of their assets.

“People are expecting silver to cross $100 again in the coming days and weeks.”

However, he sees the market trading sideways in the coming months.