Global gold exchange-traded funds (ETFs) attracted a record USD 31 billion (AED 114 billion) in the third quarter of 2026. However, jewellery designers in the UAE believe Indian families will continue to favour physical gold purchases for Dhanteras and Diwali. They argue that while ETFs offer investment exposure to gold, they cannot replace the emotional, cultural and personal significance of jewellery.
With Dhanteras falling on November 6 this year, designers expect demand for physical gold to remain strong despite growing interest in digital gold and investment products.
According to the World Gold Council (WGC), physically backed gold ETFs attracted USD 10 billion (AED 36.7 billion) in September alone. Holdings increased by 67 tonnes to a record 4,256 tonnes. However, assets under management declined 7 per cent to USD 574 billion (AED 2.11 trillion) as gold prices fell during the month.
Gold prices experienced significant fluctuations in 2026. The metal gained 14 per cent in January before recording its weakest month in almost 13 years in March. Prices fell more than 11 per cent in June to around USD 4,000 an ounce (AED 14,690), before recovering 13 per cent in August to reach USD 4,386.
ETF holdings peaked at 4,176 tonnes on February 27 before declining. Outflows were recorded in May and June, while July brought USD 3 billion in inflows. August added another USD 18 billion. Total inflows reached USD 29 billion by the end of August.
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India has also witnessed growing interest in gold ETFs. Indian funds attracted USD 496.2 million (AED 1.82 billion) in September, taking inflows to USD 4.71 billion (AED 17.3 billion) so far in 2026. This places India third globally, behind the UK and China.
WGC data showed that Indian investment demand increased 54 per cent year-on-year in the first quarter, while jewellery demand by weight declined 19 per cent. Wedding-related purchases remained relatively strong through the summer.
Amreen Iqbal, founder of Piece of You Jewellery, believes physical gold retains its importance during Dhanteras because of its cultural and emotional value.
Panos Melekkis, founder of Panos Melekkis Jewellery, said ETFs and digital gold serve investors seeking financial exposure but cannot replace jewellery worn at weddings or passed down through generations.
Designer Rasha Mansour also believes investment products cannot replace the personal significance of jewellery associated with family milestones.
With gold prices lower than last year, designers expect shoppers to find opportunities to diversify their portfolios while continuing the tradition of purchasing physical gold.