Dubai Diaries: How to spot investment-worthy gold jewellery
Gold jewellery can be a smart investment—if you know what to look for before you buy, sell
Dubai: Thinking of buying gold jewellery as an investment? In Dubai, where gold is big business and craftsmanship meets carat weight, shopping smart can turn your jewellery box into a mini gold reserve.
But not all gold is created equal. If you're planning to buy—or sell—gold jewellery, here’s how to make sure you're getting the most value from every gram.
Start by watching gold price trends
Gold prices shift constantly, sometimes daily. To buy smart, time your purchase around price dips. Many UAE-based buyers use price-tracking websites like Gulf News that provide real-time updates. Right now, the price of 24K gold in Dubai is hovering around Dh400 per gram—so when prices dip below that mark, it’s often a good time to buy.
Always inspect the hallmark
One of the easiest ways to know if your gold is worth the price is to look for the hallmark—a small stamp that confirms the piece’s purity. Hallmarks are typically found on the inner side of rings or clasps of chains and bangles. Here's a quick guide to what they mean:
.999 = 24-karat (99.9% pure)
.916 = 22-karat (91.6% pure)
.750 = 18-karat (75% pure)
.585 = 14-karat (58.5% pure)
.417 = 10-karat (41.7% pure)
These codes matter because gold jewellery is rarely made of 100% gold; it’s usually mixed with other metals for durability. The higher the karat, the more gold it contains—and typically, the better the resale value.
Also note: In Dubai, gold and jewellery sold in stores are regulated by the Dubai Municipality’s Central Laboratories (DCL), which inspects and certifies purity, giving buyers added peace of mind.
Know your gold: Karats, quality
Understanding the karatage helps you choose what fits your budget and long-term plans.
24K gold (99.9% pure) is soft, bright yellow, and best for investment.
22K and 18K gold are more durable and often used in everyday jewellery.
Plated gold, while inexpensive, isn’t investment-grade and carries no resale value.
The sweet spot for investment-worthy wearables? Experts often recommend 18K and 22K gold for jewellery that balances value with durability.
Do the math before you buy, sell
To estimate the value of a piece, you can use a simple formula:
Find the live gold price per gram (example: Dh400 for 24K)
Adjust for purity by multiplying the karat divided by 24
For 18K gold: (18 ÷ 24) × Dh400 = Dh300 per gram
Multiply by weight: 5g necklace × Dh300 = Dh1,500
This gives you a solid benchmark, though resale value may differ slightly depending on design, condition, and market demand.
Watch out for hidden costs
Unlike gold bars or coins, jewellery carries making charges, design premiums, and wastage costs—all of which can eat into your profit when reselling.
To protect your margins:
Go for simple, timeless designs
Ask if the seller has a buy-back policy that waives or reduces deductions
Avoid overly trendy pieces that may lose value or demand over time
Bottom line?
Gold jewellery can be more than just decoration—it can be a serious asset. By understanding karats, hallmarks, pricing, and resale dynamics, you can shop with confidence and even turn a profit down the line.
In a city like Dubai, where gold is both tradition and trend, knowing how to spot investment-worthy pieces puts you ahead of the game—whether you're adding to your collection or preparing to sell.
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