Despite the historically high prices of gold, there has been a surge in business at gold shops throughout the UAE. Across the country, bustling shops and large crowds have been witnessed as people rush to purchase the precious metal.
According to experts, one of the primary reasons for this uptick in sales is the anticipation of further price increases. Nishin Thaslim, Chairman of Nishka Jewelry, stated, “We have observed a significant increase in sales recently, largely attributed to the upward trend in gold prices.
Market dynamics, driven by the rising trajectory of gold prices, have generated heightened demand for our products. While there has been a slight decrease in the weight of purchases, there has been a substantial increase in walk-in customers. Investors and consumers are seeking to capitalize on favorable market conditions, leading to heightened interest in our offerings, including gold-related products.”
On Friday, gold reached $2,075 per ounce and is on track to potentially reach an all-time high, hovering around the $2,079-2,080 range established in May.
Suresh Babu, General Manager at Zaiba Jewelry, affirmed that the company has witnessed increased sales across all its Dubai outlets. He concurred that the expectation of higher prices is a major driving force behind the surge in purchases. “Experts suggest that prices could rise to $2400,” he remarked. “Typically, towards the end of December, we see spikes in prices, and we anticipate this trend to persist. While there might be minor corrections in the short term, we believe the price will continue its upward trajectory.”
Tourist sales also contribute to the heightened activity, as Suresh pointed out the influx of tourists during this season. “Traditionally, at this time of the year, with improved weather, we witness a substantial number of tourists coming to the country,” he explained. “Our shops have experienced an increase in tourists as well.”
Rahul Sagar, Vice President of Shantilal Jewellers, noted strong retail sales after Diwali, attributing it to the return of Indian tourists to Dubai. “This time of the year is always busy, as many tourists from around the world prefer to visit Dubai in December due to the more pleasant weather. We're delighted to see many tourists in the Gold Souk again.”
Anticipating continued strong performance, Sagar stated, “We expect to see stronger demand for jewelry, especially from the visitors expected to arrive in Dubai over the next few weeks. With the Dubai Shopping Festival commencing this Friday, we hope it will provide an additional boost in sales so that we can end the year on a high.”
Nishin shared this optimism, saying, “We are particularly hopeful about the impact of the upcoming Dubai Shopping Festival. DSF has historically been a major driver of consumer activity, attracting a diverse and international audience. Given the festival's reputation for offering exclusive deals, promotions, and a unique shopping experience, we anticipate a surge in consumer interest and demand during this period.”