Should UAE shoppers go for gold bars or '0% making charge' jewellery as investment?

Dubai: Planning to buy gold as an investment for Eid Al Adha? And wondering what to choose between ‘no making charges’ jewellery or a gold bar/coin?  

The easy answer? Always go for the gold bar or coin. (Tourist shoppers in the UAE also get the immediate gain of not having to pay anything on VAT.)

“As the best store of value for investment, there is nothing to beat a gold bar purchase in Dubai,” said a bullion trader. “You are assured of the highest purity standards and can be sold or exchanged later at a time of your choosing. And at a premium given how gold prices have been performing the last 3 years.

“In comparison, machine-produced gold jewellery sold at zero making charge is more of a sales gimmick. If the buyers wants gold only as an investment, stick to bars and coins.”

But since the start of the year, there has been a lot of attention generated on social and digital media about some jewellery retailers selling at zero making charges. It’s a trend that’s confined very much to the smaller retailer, with the big names in the business only going for ‘zero making charge’ promotions as clearance sales of older jewellery collections.

Gulf News spoke to a couple of gold retailers who do offer zero making collections on a daily basis and they say there are UAE residents and tourist shoppers who do not mind buying ‘basic’ jewellery pieces. “Such shoppers need to be assured that we are offering them at zero charges,” said one retailer. “We ship in these collections, mostly from Turkey, and find there are ready buyers for these.

“Our selling policies are transparent, it’s up to the shopper to decide what suits their wallets and tastes.”

The ‘zero making charge’ movement shifted into higher gear from last October/November onwards, which was when the Dubai gold rate shot past the Dh300 a gram mark for 22K.

So far this year, the higher gold price trend accelerated and going all the way to Dh381.75. It even hit Dh388 a gram for a brief period in April. (The 24K gram version has at multiple times in 2025 gone past Dh400.)

Currently, the Dubai gold rate is at Dh369.75 a gram for 22K.

The leading jewellery retailers in the UAE have been saying they will only consider discounts to making charges and use 'zero charges' selectively. "Any daily discount schemes undermine the entire industry," said a jeweller. "It will not help sustain the business - and you have seen discount stores go out of business in other retail sectors.

"This 'zero making charge' gold trade is, I believe, one such trend."

For now, shoppers will decide what suits them best - gold bars or coins? Or zero making charge jewellery...

Zero making charges might sound great on the surface, especially with gold prices climbing. But it’s just not sustainable if you’re serious about quality - and ethics.

Handcrafted jewelry isn’t mass-produced. It takes highly skilled artisans hours - even days - to perfect just one design. Waiving making charges undervalues their work and compromises fair wages.

Plus, there’s the cost of running a proper workshop—tools, quality checks, safety, and clean working conditions all come at a price. Custom pieces go through detailed processes like design consultations, CAD modeling, diamond setting, polishing, and more. That kind of craftsmanship can’t be squeezed into a “free” making charge.

At the end of the day, transparent pricing reflects not just the gold, but the care and effort behind each piece. Zero making charges might look like a deal—but too often, it comes at the cost of quality or ethics.

Amreen Iqbal, Founder of Piece of You