Dubai's gold market is experiencing increased activity as jewelers offer major discounts to counter rising bullion prices. Retailers have reduced or eliminated various charges, which are typically one of the major costs associated with purchasing jewelry. This has resulted in a greater availability of gold at stable international prices. Additionally, gifts such as coins and substantial discounts on diamond jewelry have contributed to increased customer interest.
The market demand surged amid the celebrations of Poila Boishakh and Akshaya Tritiya. People usually purchase gold during Akshaya Tritiya, especially Indian diaspora communities. During this time, gold shops saw an increase in inquiries and customers coming in before the festive season.
Aditya Singh, Titan, head of international jewelry business, said, “Jewelers in the UAE have reduced making charges. Making charge reductions is meaningful in a high-gold-price environment because it addresses the one variable the customer feels they have some agency over. They can't control the commodity price, but a waiver or reduction in making charges makes the total cost of acquisition feel fairer and more negotiable. It's psychologically effective and practically generous.”
Singh also explained that Tanishq applies making charges for driving conversion. Especially for studded jewelry and everyday wear ranges. The company does not apply such charges to a majority of its products.
Meanwhile, John Paul Alukkas, CEO of Joyalukkas Jewelry, said, “The local community, families, professionals, and long-term expats understand the value of gold and the significance of Akshaya Tritiya. They are making thoughtful, confident purchases, whether for weddings, gifts, or personal milestones. While we welcome all customers, the resident base is exceptionally strong and loyal, and we see that reflected in steady footfall across our showrooms.” He further added that jewelers are offering competitive making charges and added benefits during this festive period.
Optimism about the ongoing trend is expected to persist even during the festive season. The effectiveness of reduced costs in retaining customers without cutting into profits has been tested and proven effective.
Though price fluctuations cannot be ruled out, the synergy between festivity and price will go a long way toward generating volume. In Dubai’s gold market, traditionally dependent on global consumers, a shift in strategy is right now underway.
Also read: Dubai Gold Rush: Festive Deals, Vouchers, Zero Charges for Akshaya Tritiya