Dubai Gold Market: The Emirates' Gold Souqs Variety And Quality

Millions of visitors flock to Dubai every year to shop, especially for gold and diamond jewellery. The Emirates’ gold souqs are known for their variety and quality. During the wedding and festival seasons, sales increase substantially as residents and tourists of South Asian backgrounds contribute significantly to the overall purchases made in this sector.

With thousands of gold and jewellery shops dotted across the world-famous Dubai Gold Souk and shopping malls, the precious metal is sold in three categories – 22K, 21K and 18K. However, gold bars are sold in 24K purity.

In addition to gold prices, jewellers also apply making charges to customers, which are usually fixed for smaller ornaments, while making charges for bigger pieces of jewellery are based on a per gram basis and start from as low as four per cent.

Gold jewellery cheapest in Dubai?

Regarded as a safe investment and is the only value-appreciating lifestyle article that can also be easily liquidated in times of need, there are several considerations to be made while purchasing gold, in addition to the prices.

Many jewellers regularly run campaigns of zero deduction on the old gold exchange, lifetime free maintenance, cashback bank offers and offer attractive benefits through gold savings schemes.

According to Shamlal Ahamed, managing director for international operations, Malabar Gold & Diamonds, when compared to the gold rate in India, buying gold from the GCC assures savings of around 12-15 per cent.

Tips to buy gold and jewellery at lower prices?

Bargain on making charges
Wait for gold prices to go drop
Choose schemes offered by retailers for buying at the lowest prices
Check out for discounts/promotions
Ensure zero deduction on old gold exchange
Ensure certification, warranties, after-sale service

According to Joy Alukkas, chairman, Joyalukkas Group, in Dubai, consumers enjoy the lowest gold price in the world, thanks to zero import duty in UAE as well as VAT refund for tourists, hence it’s always advantageous to buy from Dubai on any given day.

How to buy jewellery cheaper?

“A simple rule to follow is to wait for the price to drop. Shoppers don’t have to worry too much about price when the gold rate is low. We also offer buy now, pay later schemes to make it easier for shoppers. Top credit card institutions also offer attractive long-term payment plans for shopping,” said Alukkas.

Moreover, if a shopper is in a hurry to buy jewellery when gold prices are at their peak, Joyalukkas offers customers an option to take advantage of its lowest price scheme. “Shoppers who opt for this benefit by paying 100 per cent of value as advance can take advantage of the lowest gold price on the day of booking or the within the next 180 days’ period,” he said.

Ramesh Kalyanaraman, executive director, Kalyan Jewellers, says Dubai offers significant discounts and promotions like the Dubai Summer Surprise and the Dubai Shopping Festival on various products, including gold and diamond jewellery.

“These sales are always a great time to look at buying gold to maximise one’s benefits. Apart from these seasonal sales, we also offer exciting deals during the festive seasons, which is also an auspicious time to buy gold,” he said.

What to ask when buying gold-diamond jewellery

Ramesh Kalyanaraman advised that while buying diamond-studded jewellery, one can enquire if the gemstones used are natural or synthetic, the quality and certifications of the same, and the return/buyback policies.

“We encourage customers to inquire about certifications, return and exchange policies, warranties, and after-sales services,” he said.

Alukkas suggested that shoppers should be aware of the day’s gold rate, the making charges, the carat and the basic technical aspects of the diamond. “These are the standard details that would be useful for a shopper to be aware of.”