The demand for buying gold and jewelry in the UAE by consumers continues to resonate widely, despite its prices rising to record levels that it has never reached before.
Gold and jewelry merchants in the Emirates told Al-Khaleej that the demand for buying gold, by citizens, tourists and residents, has not stopped, but has increased recently, with a small group being affected by the rise in prices.
Traders explained that expectations are rising remarkably in the coming months, as the price of one ounce may reach $2,500, after the session closed last Friday at $2,330 per ounce.
Ahmed Anizan, Director of Public Relations and Development at the Salem Al-Shuaibi Jewelery Foundation, says: “The demand for gold has increased recently by consumers as a result of their awareness and increased culture of the prices of gold and jewelry, as it is one of the best safe havens that can be resorted to in light of today’s economic fluctuations.”
Anizan added: “Gold prices will continue their historic upward path, until they reach $2,500 per ounce during the next two months.”
He explained that the current volatile geopolitical and economic conditions in the world were a major factor contributing to the increased demand for gold and jewelry in the country, and UAE citizens and tourists are considered the most eager to buy, especially since the latter group comes to the country with the aim of buying quantities of gold.
Historical prices
The prices of a gram of gold in the UAE recorded record prices after the price of (24 karat) reached 282 dirhams, (22 karat) 261.25 dirhams, (21 karat) 252.75 dirhams, and (18 karat) 216.75 dirhams.
According to traders, the fear of continued rise in prices, as they expect, is a major motive behind the appetite of many consumers to acquire quantities of gold, especially since it is one of the most important wallets that everyone should own at the present time.
Chandu Seruya, Vice Chairman of the Board of Directors of the Dubai Gold and Jewelery Group and President of the Seruya Jewelery Company, believes that the groups that buy most gold in the country are tourists, and some groups that cannot postpone their purchases, especially those who have social occasions, such as marriage, celebrations, etc. One of the factors that prompts some consumers not to postpone their purchases of the yellow metal.
He pointed out that customers today apply a monitoring method when there is a very large increase in gold prices, anticipating that there will be stability in prices and an increase in sales during the holiday season, which is remarkably supported by incoming tourists and travelers.
Fear of fluctuations
Muhammad Murhaf Al-Habyan, a “gold and jewelry seller” in Dubai, says: “People’s demand to buy gold has increased contrary to what was expected after its prices rose, as it is a safe haven for them, and for fear of the economic fluctuations occurring in the recent period.”
He added: “The categories that usually buy gold and jewelry include investors, collectors, families for celebrations and special occasions, and people looking for a safe, long-term investment.”
Al-Habyan expected that the rise in gold prices would greatly affect demand for it in the coming period, especially since its prices depend on several factors, including demand and supply, inflation, economic stability, and others.
Al-Habyan explained that it is difficult to predict changes in gold prices, but the rise may continue as the economic and political factors remain supportive in the current period.
Price per gram
(24 karat) 282 dirhams
(22 karat) 261.25 dirhams
(21 caliber) 252.75 dirhams
(18 karat) 216.75 dirhams