A recent dip in gold prices is prompting shoppers to reconsider festive purchases, while some are looking to sell or exchange jewellery they no longer use.
With gold prices easing ahead of Diwali and Dhanteras, UAE residents are reconsidering their festive purchases. Some are looking at gold coins and lighter jewellery, while others are weighing whether to sell or exchange pieces that have remained unused in their lockers.
For some shoppers, the recent correction offers an opportunity to make their annual festive gold purchase at a more attractive price. Others are tracking market movements, comparing buyback policies and considering exchanging old jewellery for new designs.
Industry insiders say the combination of festive demand and recent price movements is shaping buying and selling decisions, with interest in gold traditionally rising during this period.
Rishi Vaya of SellYourGold.ae said significant price corrections often prompt different responses from buyers and sellers. Those who have been waiting for prices to peak may choose to sell, while others prefer to hold on to their gold in anticipation of a market recovery.
“Buyers, on the other hand, are always ready to move when prices fall. Lower rates present a clear opportunity, and we are currently seeing strong buying intent in the market,” he said.
With Diwali, Dhanteras and Christmas approaching, Vaya said consumers who had been considering a purchase were finding the current market conditions appealing.
UAE gold buyers turn to coins and lighter jewellery
For jewellery retailers, changing gold prices are also making customers more mindful of their spending.
Amreen Iqbal, founder of Piece of You Jewellery, said some consumers were choosing to sell jewellery they no longer wore, while others were using its value towards smaller purchases or more versatile designs.
“When gold prices are high, we see people become more value-conscious. Many are choosing to monetise pieces that are lying unused in their lockers, while others are putting that value towards a smaller purchase, or towards lighter, more versatile designs,” she said.
Buyers are also taking a more considered approach to their purchases.
“They’re comparing rates, asking about buyback policies and thinking of gold as a long-term asset rather than a quick purchase,” Iqbal added.
Ahead of the festive season, Iqbal said gold’s cultural significance continues to shape buying decisions, even when consumers choose smaller items.
“We’re also seeing strong interest in coins, bars and lightweight everyday jewellery,” she said.
Vaya, meanwhile, advised residents planning to exchange old jewellery to pay close attention to how the transaction is structured.
“The strongest advice is to consolidate both transactions with the same jeweller. Selling for cash and purchasing elsewhere creates two separate transactions, each with their own margin, effectively incurring a loss twice,” he said.
He also urged consumers to understand how gemstone-set jewellery is valued and how differences in purity can affect the final offer.
“Additional considerations include how gem-set pieces are valued, how purity differences affect the final offer, and ensuring you are dealing with a buyer who can provide full transparency on their valuation methodology,” he said.
‘A tradition I want to continue with my family here’
For many UAE residents, however, buying gold during Diwali is about more than market timing. Purchasing the precious metal on an auspicious occasion remains an important part of their festive celebrations.
Manju Arora said she makes it a point to buy gold every year during Dhanteras, although she is considering a different form of purchase this time.
“Diwali or Dhanteras is an auspicious time to buy gold, and I make it a point to purchase something every year. This time, I am considering buying a few gold coins as they are easier to store and also a good investment for the future,” she said.
Bhavya Rao is also tracking price movements before deciding what to buy, but is currently leaning towards a lighter piece of jewellery.
“With gold prices fluctuating, I am keeping an eye on the rates before making a purchase. I would prefer buying a lightweight piece of jewellery for Diwali,” she said.
For Rao, the annual purchase is also a way to preserve family traditions while living away from India.
“I want to keep this tradition alive with my family here in the UAE. I also see gold as a long-term investment, especially as I have two daughters. It could come in useful in the future, whether for their weddings or education,” she added.
