Gold is cheaper this Diwali: Here's what UAE residents are planning to buy

Dubai: For many Indian families in the UAE, Diwali shopping begins at the jewellery counter. And this year, they are walking in to slightly better news: gold costs less than it did last Diwali.

On the morning of Wednesday, October 28, 24-carat gold was Dh486.50 per gram and 22-carat was Dh450.50. On Diwali day last year, October 20, 2025, the same gold cost Dh512.25 and Dh474.25 per gram.

So what are people actually planning to buy? I asked three Indian residents of the UAE.

Most gold shopping is timed around Dhanteras, the first day of the five-day Diwali festival, which falls on Friday, November 6 this year. Lakshmi Puja, the main Diwali prayer, follows two days later, on Sunday, November 8.

The name combines dhan, meaning wealth, and teras, the 13th day of the lunar fortnight. Buying gold, silver or new utensils on the day is believed to invite the blessings of Lakshmi, the goddess of wealth.

One popular legend explains the link to gold. A young prince was fated to die of a snakebite on the fourth day of his marriage. That night, his wife placed her ornaments and coins at the door, lit lamps and told him stories to keep him awake. When Yama, the god of death, arrived as a serpent, he was dazzled by the lamps and the gold, and could not enter.

According to Drik Panchang, the Dhanteras puja muhurat in Dubai is from 6.06pm to 8.04pm.

For Babita, an Indian resident from New Delhi, Diwali gold is a family tradition with a sentimental twist.

"I am planning to buy a gold coin this Diwali. We buy it every year, and the weight may vary," she said.

The coin is for her son. "I am buying it for my son, so that he can keep it as a memory of Diwali every year."

Lower prices could mean a slightly heavier coin this year. "It depends on the price of gold at that time. If the price is less, then I can buy slightly more than last year."

And if the coin costs more than she planned? She would not switch. "Since there are no or fewer making charges on a gold coin, I would not change my mind."

Indian expat Neetu Mudgal bought a ring last Diwali. This year, she has her eye on something bigger.

"I am planning to buy bangles or a bracelet," she said. "Since the gold price has gone down, it has definitely changed my spending decision."

She is buying for herself, and she sees it as an investment, which is why she will not go below 22-carat. "Gold being an investment rather than just jewellery, I will not compromise on the quality, so I will opt for 22 or 24K only."

Purpose decides the piece, she explained. "For gifting, I would try to think about the design and likeability of the piece. However, for investment, I would choose a simple 24K gold piece."

Mitesh Makwana, an Indian resident of the UAE, says his shopping list this year looks a lot like his customers'.

"Honestly, I'm shopping like my customers, who have become the sharpest analysts I know. They compare purity, making charges and buyback terms before any commitments," he said. "So this year it's my Diwali trinity: a coin for blessings, a bar for discipline and a piece of jewellery for joy."

There is also gold for his team. "They have polished the business all year and deserve something that shines back. Last year, joy took the bigger share. This year, discipline gets a fair hearing."

The lower price has not changed whether he buys, only how much. "Gold rarely announces a sale, so when it does, I don't wait for a second invitation. The price changed the quantity, not the decision. That was made the day Diwali appeared on the calendar."

He advises customers to average in, buying a little every festival whatever the price. "This year, averaging is working in our favour. Same dirhams, more grams."

If a piece goes over budget, Makwana would rather go lighter than drop the carat for traditional jewellery, as 22-carat holds its value better at resale.

"The weight of a piece should never outweigh the budget," he said. "For everyday wear, 18K is perfectly respectable and far more forgiving of daily life. And with today's filigree and hollow work, a lighter 22K piece often looks heavier than it is. You get the festive look without the festive overdraft."

He is buying for himself, as gifts and as an investment, and says purpose is everything. "Think of it as a family portfolio: coins for the future, gifts for the present and jewellery for the memories in between. Mix them up and you'll overpay for at least one."

There is a tax angle too. Investment-grade gold is usually zero-rated for VAT in the UAE, while jewellery carries the standard 5 per cent.

For gifting, he recommends a coin. "A 24K coin is the most underrated gift. It appreciates while the receiver is still saying 'You shouldn't have', and nobody ever returns it," he said. "That's gold's real advantage. It carries both value and memory."