Dubai gold price sticks to Dh370 plus levels - more UAE shoppers opt for 'monthly instalments'

Dubai: The Dubai gold rate continues to stick to over Dh370 for a gram of 22K (and Dh440 plus for 24K) – but that has not prevented UAE’s resident-shoppers to see what they can do to make best use of the near-peak prices.

In recent days, more of them are signing up for the monthly gold instalment schemes offered by leading jewellers here. The average monthly instalments are in the Dh1,000-Dh2,000 range, but shopper-investors can even go below Dh1,000 to make a start. At the end of a certain period, they can recoup those payments in any form of gold they want – coins, bars or jewellery and with the retailers throwing in some incentives of their own.

The Dubai gold rate is currently Dh373 for 22K.

“The monthly instalment schemes have been the most popular option with UAE residents, especially after gold hit $3,500 an ounce,” said a jewellery retailer who is giving the instalment option.

Essentially, these shoppers are only ‘delaying’ their next purchase of gold until such time they feel prices have dropped to levels they are comfortable with.

"The best part is there is no requirement to buy after 12 months - you can extend it to the next year too," said Mandar Khatoo, a Dubai resident. "At the end of the first 12 months, you are eligible for 1-month free from the jeweller."

“We even have non-residents who are regular visitors to the UAE opting to sign up for the instalment plans,” said the retailer. “For many it’s a realisation that rather than random gold buys, it makes better sense to build their way to the grams or jewellery they want.”

Shoppers turn 'investors'

For more than a year now, jewellery retailers and entities such as World Gold Council have been saying that shoppers in the UAE and Gulf have 'refined' their ways in buying the metal. Which explained why gold bars and coin sales did remarkably well even as overall jewellery sales fell during 2024, according to World Gold Council data.

And the process only got bigger with gold prices going its merry way towards $3,500 an ounce, which meant that the Dubai gold rate hit a peak of Dh388 a gram for 22K and Dh412 for 24K.

"Google search data reveal that 'Buy Gold' search queries have reached a 5-year high from UAE-based searchers," said James Campion of the trading platform eToro.

"This surge in online interest reflects growing consumer confidence in gold as a safe-haven asset despite elevated prices.

"The Dubai gold rate has experienced an extraordinary journey since breaking through the Dh300 milestone in October 2024.

"In less than six months, prices have increased by more than 30% - outperforming most other investment assets during the same period."

All of which is why UAE shopper-investors believe they are on to a good thing by opting for monthly instalment plans. And wait for their next buy...