By Staff Reporter
Dubai: An unprecedented gold exchange programme could happen in the coming days – and hitting a high next week as the UAE gets ready to host three major events and conferences. This comes as gold prices stick to $2,900 an ounce levels, but some way off the highest ever point of $2,940 on February 10.
Three major events open next week – the Gulfood and Dubai International Boat Show, and the IDEX defence industry event in Abu Dhabi. The thinking within UAE’s jewellery trade is that many of those participating at these trade shows might consider trading in their old gold for new.
Even though the UAE gold rate is at eye-watering Dh323.5 a gram for 22K (compared to the highest point of Dh325.25 on February 10).
“Now, even if 20% of overseas visitors to these three shows decide they want to exchange their gold, it will be good for the UAE gold retail trade,” said a senior manager at a leading jeweler. “We already had advance calls from shoppers who will be in Dubai for Gulfood next week from India and Pakistan, enquiring about what they can expect from any exchange.
“There could also be demand from Saudi visitors, who obviously benefit from exchanging gold here since they won’t have to pay the 5% VAT.
“Every gold retailer will be hoping for an exchange ‘mela’ (festival). At the very least, we can hope for one because there is no way to predict how gold prices will perform in the next 30 hours, let alone 30 days.” (In Saudi Arabia, the VAT rate is 15%.)
Dh30 rise in 30 days and some
Gold shoppers and jewelers have seen nothing like this when it comes to prices.
2025 will be the year of promotions that focus exclusively on lower making charges.
Ramesh-Kalyanaraman,-Executive-Director-at-Kalyan-Jewellers
Ramesh Kalyanaraman
Executive Director at Kalyan Jewellers
The UAE gold rate rose nearly Dh30 on a gram basis between January 1 and today. That kind of price rise has never happened before.
The vast majority of UAE residents are waiting for some cooling off to happen before they start on more gold buying, and they had already dome their own gold exchange programmes in the last 7-9 months when prices kept climbing.
But for visitors to the UAE, the prospect of making gains from exchanging or selling gold they bought a year or more ago still has its worth.
Cash in on high visitor turnout
“With events like Gulfood, IDEX and the Dubai International Boat Show, we look forward to a positive impact on UAE’s jewellery trade as well,” said Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers.
“These events not only attract global businesses and tourism – but also create opportunities for growth and engagement within the luxury retail sector.”
And UAE’s gold and diamond jewellery sector clearly has a significant space within that.
Kalyan is offering 50% off on making charges on all gold products until February 23, providing ‘added value during this period of elevated gold prices’.
It’s the same strategy that other leading jewellery retailers are using – of reducing making charges as much as possible and hoping shoppers will be convinced it’s a good deal to have.
“The first thing shoppers – residents and tourists – ask when they enter gold shops is whether we are running any promotions on lower making charges,” said a retailer. “2025 will be the year of promotions that focus exclusively on lower making charges.”
