Abu Dhabi: Retail shops in the UAE have recorded up to 40 per cent increase in gold jewellery sale despite the bullion prices reaching a two-year high.
The precious metal is generally a popular gift among family members in the Middle East during Eid. Gulf News spoke with merchants and residents in the capital to see if the price increases have swayed people’s decision to shop for gold this Eid.
“Our sales have gone up by around 40 per cent leading up to Eid. Gold is still the most popular gift among family members,” said Kamel Al Chaar, managing partner of Samer Jewellery in Abu Dhabi’s Madinat Zayed Gold Centre.
He said even the recent global economical uncertainties have not affected their business too much, as gifting gold remains a trendy tradition.
“People prefer to buy gold for their loved ones because it is a beautiful gift that will keep its value,” said Al Chaar.
He said the precious metal’s popularity with women played a big part in making it the most desired gift. “I would say 90 per cent of ladies like to wear gold and people buy things to make their loved ones happy,” he said.
He said sales of smaller items weighing between three to five grams have increased even with the high gold prices.
Al Chaar’s views are echoed by Hussain Esmail, manager of Al Jazira Jewellery which has over 20 branches and have been working in the gold business for over 30 years.
“Gold is a popular gift in the Middle East, especially for Eid,” said Esmail. “In our culture here (Middle East), it is rude to give money as gift, even to close family, so people give gold instead. The increase in gold prices don’t affect the sales too much for Eid. It is still the best gift and people know it.”
He said their sales of rings, bracelets and what they call “half-sets” increase dramatically for Eid.
“Gold is a gift that can be worn, exchanged or sold for more value later.” Esmail said their sales have been up by around 30 per cent this year before Eid, a bigger increase in sales compared to the previous year. He puts this down to Ramadan moving forward before people go on their summer vacation.
What residents say
Mohammad and Wafa Hayek from Jordan were busy looking for jewellery for a number of their family members and themselves. Mohammad confessed laughingly that while his wife loves gold, he often tries to talk her out of it because it was too expensive now.
She jumps in and explains, “I always tell him gold is the best gift and investment. Look at what happened after this Brexit, everything crashed but gold went up.”
Umm Ahmad, an Emirati housewife and her mother were back at the souq again to buy bracelets and earrings to complete their shopping. “I have been shopping for myself and my mum (for gold) for about one week, it’s more expensive but what can we do?” she said.
Asked why the rush to buy gold before Eid, she said, “Eid is special for us, new clothes, new shoes and new jewellery.”
Friends Abeer Ali and Ghada Haikal from Egypt were shopping for rings at the gold souq. Ali had decided to treat herself with a ring for Eid while Haikal was looking for a gift for her mother.
“Gold is a precious gift to give.” Said Haikal. “I find rings are always a suitable and easy to wear. I know my mum will like it.”
“You can buy bags, or shoes but gold is different. You pay the same money and it will last,” added Ali.
Gold Prices
24K: Dh163.50
22K: Dh153.50
21K: Dh146.50
18K: Dh125.50
