Due to the correction in gold prices ahead of the Diwali and Dhanteras festivals, residents of the United Arab Emirates (UAE) are considering purchasing coins, investing in lighter jewelry, or cashing out unused items from their vaults, as the approaching festive season once again increases interest in precious metals.
Some view the price decrease compared to previous months as an opportunity to make their annual festive purchase at a more favorable price. Others closely monitor market dynamics, comparing buyback policies and deciding whether to exchange old jewelry for new.
Industry insiders note that the combination of festive sentiment and recent price fluctuations influences buying and selling decisions, while demand for purchases traditionally rises during this period.
Rishi Vaya from SellYourGold.ae stated that significant price adjustments elicit varied reactions from sellers and buyers. Those who expected a price peak might rush to sell, while others prefer to hold onto gold awaiting a recovery in value.
He added that buyers are always ready to act when prices drop, as lower rates present an obvious opportunity, and strong buyer interest is currently observed in the market.
As Diwali, Dhanteras, and Christmas approach, Vaya noted that consumers who were contemplating a purchase find the current market conditions attractive.
For jewelry businesses, the change in price levels also prompts customers to be more mindful of spending. Amrin Iqbal, founder of Piece of You Jewellery, reported that some consumers decide to monetize jewelry they no longer wear, while others direct this value toward smaller purchases or more versatile designs.
Iqbal emphasized: 'When gold prices are high, we see people becoming more price-sensitive. Many decide to monetize items in their vaults, while others direct this value towards a smaller purchase or lighter, more versatile designs.'
Buyers are also exercising greater caution. Iqbal added that they compare rates, inquire about buyback policies, and view gold as a long-term asset rather than a quick purchase.
Before the start of the festive season, she noted that the cultural significance of gold continues to influence purchasing decisions, even when consumers opt for more modest items. 'We are also seeing strong interest in coins, bars, and light everyday jewelry.'
Meanwhile, Vaya advised residents planning to trade in old jewelry to closely monitor transaction structure. He warned: 'The strongest advice is to consolidate both transactions with the same jeweler. Selling for cash and buying elsewhere creates two separate transactions, each effectively incurring double losses due to its own margin.'
He also strongly recommended that consumers understand how gemstone jewelry is appraised and how purity differences affect the final offer. 'Additional considerations include the appraisal of gemstone jewelry, the impact of purity differences on the final offer, and ensuring you deal with a buyer who can provide full transparency in their valuation methodology.'
However, for many UAE residents, buying gold during Diwali is connected to something more than just market timing. The tradition of acquiring precious metal at an auspicious time remains an important part of their celebration.
Manju Arora said that she tries to buy gold every year during Dhanteras but is considering a different type of investment this time. She explained: 'Diwali or Dhanteras is an auspicious time to buy gold, and I try to buy something every year. This time I am considering buying several gold coins because they are easier to store, and it is also a good investment for the future.'
Bhavya Rao also tracks price movements before making a purchase, although she leans towards choosing lighter jewelry. She stated: 'Since gold prices fluctuate, I monitor the rates before making a purchase. I would prefer to buy light jewelry for Diwali.'
For Rao, the annual purchase is also a way of preserving family traditions while living away from India. She added: 'I want to maintain this tradition with my family here in the UAE. I also consider gold a long-term investment, especially since I have two daughters. It might be useful in the future, whether for their weddings or education.'
