Dubai gold price sticks to Dh370 plus - but on diamonds, it is up to 75% discounts

Dubai: At Dh372.5 a gram, the Dubai gold price is down slightly from the Dh374 on the first day of July, even as UAE jewellery retailers push one of the biggest summer promotions in recent times.

Shoppers are being offered straight discounts of even up to 75% on diamond jewellery as retailers target those willing to spend either for investments or simply because they are looking to add to their bespoke designer pieces. If those are available at the ‘right price’.

And in the current summer promotions, jewelers are slashing prices on diamonds and precious stones. Sure, these could be pieces from older collections, but as far as shoppers are concerned, they are only looking at the bottom-line.

The thinking is offer as much as possible by way of discounts to ease the worries among shoppers about the price of gold. (Gold prices could be in for an interesting two days with the latest jobs data from the US going to influence which way rates will move short-term.)  

For now, to an extent, the strategy of UAE jewelers to offer steep discounts is working.

“Fact is many shoppers are still finding the current rates more favourable compared to the recent peaks we have seen (when Dubai gold rate was hovering above Dh380 a gram for 22K),” said Vinay Jethwani, Partner at Meena Jewellers, which is going all in with up to 75% discounts on diamond sets . “Despite the ongoing fluctuations in gold rates, we are seeing strong customer sentiment.

“The attractive deals on diamond jewellery, competitive making charges, and our collection of designs are driving solid sales across the board. Shoppers are clearly valuing quality, variety, and value.”

Even with gold prices above Dh370, the Dubai Gold Souk and the Gold Souk Extension continue to be quite busy in the evenings. What this shows is that there is a trickle of shoppers willing to see what sort of offers are available for Dubai Summer Surprises.

“If they have over a Dh1,000 to spare, they will take their chances, buy some jewellery or coins and enter the DSS gold raffles,” said a jeweler. “It’s as simple as that – these UAE residents prefer to buy the ‘real’ stuff. Even if it’s just for Dh1,000.”

Pravin Pawar, Operations Manager at Marsa Holidays, is one shopper waiting for the right deals to open up. "I usually look for seasonal offers or raffles to make the purchase more worthwhile," he said. "If there’s a good deal or a festival, I might still go for it..."

A lot of UAE resident gold shoppers might be thinking the same about diamond jewellery...