Gold price drop stimulates sales and foot traffic in jewelry stores during Dhanteras

Residents of the country traditionally wait for the festivals of Diwali and Dhanteras to purchase gold and silver, as buying these metals on Dhanteras is considered auspicious. This time, a large-scale purchase of gold jewelry is expected, especially by women, who view it as an investment and a connection to the arrival of Lakshmi.

If you plan to buy jewelry on Dhanteras, you should pay attention to certain points to buy pure items at a fair price and avoid being misled by jewelers. Online purchases are less likely to have such problems, but caution should be exercised when visiting physical stores.

When buying gold from jewelers, you must carefully examine the bill to ensure which charges have been included. Jewelers often add various payments to the bill to mislead customers, and buyers lacking sufficient information cannot object.

According to central government data, when purchasing jewelry, customers should only pay three components: the item's value depending on its weight, the making charge, and VAT (3%). Regardless of whether the payment is made online or offline, the VAT is only 3%.

According to IBJA, 22-karat gold cost about ₹1,30,359 for 10 grams on November 6. It is worth noting that any additional fees charged by jewelers can be disputed, as some sellers illegally take money under the pretext of weight control or labor charges. Such payments should not be made, and a complaint can be filed against the jeweler.

It is important to understand that jewelry is not made from 24-karat gold. Most items available on the market are 22, 18, or 14 karats in purity. Therefore, when purchasing, you need to know the current price of gold in the precious metals market to buy the item at the correct cost.

Furthermore, you should always negotiate the making charge, as many jewelers reduce this amount after negotiations. The making charge can reach up to 30% of the value, and this is where jewelers make the largest profit.

Also, always demand an original receipt so that there are no problems in the future regarding the purity and weight when trying to sell the jewelry. Regarding purity, only purchase items with a hallmark. The hallmark indicates five digits, and the mark differs for each carat: for example, 916 is indicated for 22 karats, 875 for 21 karats, and 750 for 18 karats, which eliminates doubts about purity.

In recent days, gold prices have significantly decreased. On the MCX exchange, the price for 10 grams of 24-carat gold is about 1.41 lakh rupees. Today is the festival of Dhanteras, and those planning to purchase gold should pay attention to the advantageous aspects of this purchase.

Most people still prefer to buy physical jewelry, avoiding digital gold. In our country, gold is considered an investment tool. However, many make a mistake when buying gold jewelry for investment, which can subsequently result in a loss.

Although women most often insist on buying jewelry, they are often unaware of potential losses, and jewelers do not always provide them with this information. Jewelers, striving for their own profit, usually advise clients to purchase jewelry specifically.

When purchasing jewelry, buyers must pay three components: the cost of the item itself (depending on weight), the making charge, and VAT (3%). Regardless of whether the payment is made online or offline, the VAT is only 3%.

However, if you are considering buying gold from an investment perspective, it is worth changing your decision. A more profitable option would be to purchase gold coins or gold bars. Coins are available even at a weight of 1 gram, and coins will bring greater returns in the future compared to jewelry.

When you buy jewelry, you have to pay for the making charge, which jewelers usually add at a rate of 15 to 20 percent. For designer jewelry, this fee can reach 25–30 percent. Imagine if you purchase an item worth one lakh rupees, and the making charge alone amounts to 15 to 20 thousand rupees.

Furthermore, if the jewelry has stones set in it, their weight is included in the total weight along with the gold. This means that when selling such jewelry, you will not get back the value of the stones. Only the value of the gold will be considered upon sale or exchange, and the money spent on the making charge will be lost. Thus, by purchasing jewelry, the client is guaranteed to lose 15 to 20 percent.

So what is the solution? If you want to keep gold at home, it is better to buy gold coins, as no making charge is levied when purchasing them; you only need to pay 3% VAT. When selling gold coins or bars, you will receive the full value, unlike jewelry. Why incur losses by buying jewelry then?

If you still decide to buy jewelry, be sure to consider the following points. Jewelers often mislead customers by adding various fees to the bill, and due to lack of information, customers cannot object. They may charge additional amounts under the pretext of polishing or labor costs, which is a violation of the rules. You have every right to refuse such payment and file a complaint against the jeweler.

It is important to know that jewelry is not made from 24-carat gold. Most items available on the market have a purity of 22 or 18 carats. Therefore, when purchasing, you must clarify the current price of gold on the foreign exchange market to acquire the item at a fair price.

The most important thing is to always negotiate the making charge. Many jewelers are willing to reduce this fee after bargaining, as the main profit for jewelers comes precisely from the making charge, which can reach 30 percent.

Always demand an original receipt (Original Price) so that there are no problems in the future regarding the purity and weight of the item upon sale. Regarding purity, you should only buy items with a hallmark.

According to jewelers, consumers in the United Arab Emirates are increasingly looking to lock in gold prices ahead of the Dhanteras festival, which falls on Friday, November 6th. Currency volatility is prompting buyers to plan purchases earlier than usual.

On Wednesday morning in the UAE, the prices for 24-carat and 22-carat gold were AED 484 and AED 448.25 per gram, respectively. However, over the weekend, the price of 24-carat gold dropped to AED 467 per gram, leading residents of the UAE to secure the prices offered by leading jewelry stores before the festival begins.

Chirag Vora, Managing Director and CEO of Bafleh Jewellers, noted that customers are becoming more mindful of timing, and locking in prices gives them 'greater confidence' in planning purchases without fear of sudden cost increases. The greatest interest is shown by those planning large purchases, including wedding jewelry and festive shopping.

Anil Dhanak, Managing Director of Kanz Jewels, stated that price protection schemes are becoming more attractive to clients who have already decided to buy. This trend is particularly noticeable among Indian expats, for whom Dhanteras is an auspicious occasion for purchasing gold jewelry.

The 'Diwali Gold Rush' promotion, running until November 12th at over 170 jewelry stores, offers buyers a share of 1 kg of gold. Customers who spend AED 1500 on jewelry at a participating store qualify for a draw. Five winners will receive 100g of gold each as Dhanteras prizes, and the grand prize will be 500g.

This promotion is organized by the Dubai Festivals and Retail Establishment (DFRE), which is part of the Dubai Department of Economy and Tourism (DET), and is part of the celebration of the Festival of Lights.

Participating brands include Arakkal Gold & Diamonds, Kanz Jewels, Bafleh Jewellery, Jawhara, La Marquise Diamonds & Watches, Lifestyle Fine Jewelry, Tajvi Gold & Diamonds, Thangals, Meena Jewellers, Kundan Kala Jewellery, and Malabar Gold & Diamonds. Some jewelers also offer discounts, purchase gifts, and special manufacturing terms.

Both retailers noted that buyers are considering more than just the gold rate. Vora emphasized that buyers evaluate the manufacturing cost, design variety, metal purity, and overall shopping experience, considering transparent pricing key to building trust. Dhanak advised customers to consider the total value, including craftsmanship, purity, and manufacturing costs.

Both leaders expect increased buying interest as Dhanteras approaches. Vora observed that young consumers are joining traditional gold jewelry buyers, while Dhanak pointed to Dubai's well-regulated market and pricing transparency as strengths for buyers.