Despite gold prices hitting multi-week highs, consumers in the UAE persist in their love for purchasing precious gold jewelry, especially during the festive and holiday season.
Retail Insights from Dubai
Retailers in Dubai note that, even during price rallies, gold jewelry continues to outshine coins and bars as the preferred choice. For shoppers, gold jewelry serves both as an ornament and an investment, offering a dual benefit of aesthetic appeal and potential value appreciation.
Seasonal Factors Driving Demand
The festive season, holidays, and wedding celebrations significantly contribute to the strong demand for gold jewelry. Despite recent three-month highs and an opening surge on the first trading day of the year, consumers display unwavering interest.
Dubai Jewellery Group Data
According to the Dubai Jewellery Group data, specific gold variants, such as 24K, 22K, 21K, and 18K, maintained trading positions at Dh250.5, Dh232.0, Dh224.75, and Dh192.5 per gram, respectively, on a recent Tuesday morning.
Insights from Industry Leaders
Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds, notes a lack of substantial customer interest in selling jewelry during price fluctuations. Festive seasons drive a focus on purchasing gifts rather than considering selling.
John Paul Alukkas, Managing Director of Joyalukkas Group, observes that while some individuals may evaluate their gold holdings during price highs, the majority do not lean towards selling and repurchasing. However, he notes an increased interest in gold coins and bars during price rallies, particularly among investors aiming for portfolio diversification.
Gold Jewelry’s Dual Appeal
The majority of customers still favor gold jewelry as an investment due to its dual appeal—both as a beautiful adornment and an appreciating asset. The emotional and aesthetic value of jewelry, coupled with its investment potential, gives it a distinct advantage over gold coins and bars.
Emerging Trends in Jewelry Preferences
There is a growing trend towards diamond and lifestyle jewelry, especially among millennials and Gen Z buyers. Lightweight, fashionable designs suitable for daily or office wear are gaining popularity, with an increasing aspirational value for natural diamond jewelry.
Customization and Uniqueness
Consumers are increasingly seeking bespoke and custom-designed jewelry, reflecting their individuality and personal expression. This emphasis on uniqueness is shaping the demand for distinctive pieces with a modern twist on traditional designs.
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