UAE gold shoppers get 3-day 'flash sales' and up to 50% discounts

Dubai: UAE gold shoppers are getting 3-day ‘flash sales’ with leading jewelers offering discounts of up to 50% on select collections – and even 10% off on full price pieces.

The Dubai gold rate is now down by nearly Dh8 from its mid-week high of Dh383.5 a gram for 22K – but the question is will shoppers be tempted to return to the stores?

The 3-day sale, starting today, will be hoping to mop up whatever demand there is and trying to cash on the fairly steep price drop over the last 2-3 days. Even then, the sale comes at a time when gold and jewellery demand in the UAE is having one of its lowest demand phases.

Damas - which this week was bought by India's Titan for $282 million - has sent mailers to customers highlighting the 3-day sales blitz. Other jewellers, big and medium sized, too are having their own versions.

Recent 3-day flash sales offered by malls in Dubai and individual retailers in other categories have brought in fairly high shopper traffic. Jewellers are hoping that they will get the same response in the coming days.

“We are hoping shoppers will react for three reasons – Dubai gold price is down quite a bit from its near all-time high,” said a retailer. “Two, the discounts cover both older and latest jewellery collections.

“Three, more shoppers, even those who purchase just 5-10 grams pieces, are convinced they need to hold more gold as an investment. Even a Dh1,000-Dh2,000 purchase can provide double-digit returns over a 3-5 year period.”

According to retailers and banking industry sources, UAE consumers are showing no signs of slowing down on their spending habits, even when it comes to going off on holidays or buying /investing in jewellery. Most banks that have announced H1-2025 results confirm their clients’ card spending is higher in near double-digit terms.

But when it comes to gold purchases, UAE shoppers are being extra cautious on when they plan to buy. They see prices of Dh350-Dh380 for a gram of 22K for the better part of H1-2025 and they feel the best thing to do is wait for prices to cool off. But so far they have just been waiting with nothing of a major price correction happening.