The recent decline in the price of gold has sparked excitement among UAE consumers who are raring to hit the shops over the next few days to score some new bargains.
The anticipated rush to purchase gold jewelry is already building up, with retailers saying they have received a number of calls from customers asking for the latest gold prices.
Jenifer Pinto-Suares, an expatriate from India, said she is excited about the news, adding that she intends to visit the gold shops before the weekend to avoid the rush.
“I am definitely buying gold now that the price is low. I bought gold a few months ago, but now I wish I had waited and saved a lot more,” Suares told Gulf News.
Suares buys gold jewelry several times a year, especially when there is a special occasion. She also considers buying gold as a form of investment.
“As an Indian, gold is synonymous with culture, pride, wealth and savings. Gold as a gift to your loved ones during important occasions is quite common and buying gold is also looked at as a very good investment. What goes down will one day go up and then you make a killing.”
The price of gold dropped to as low as $1,088.05 (Dh3996.4) an ounce, its lowest since March 2010.
Another gold buyer, Joven Reyes from the Philippines, said he can’t wait to buy a new piece of necklace now that the price has dropped significantly.
“I keep checking the prices regularly, about twice a month. Now that the gold is cheaper, I’m so excited. I want to buy a new one. “
“The good thing about buying gold is that you’ll make some money in the long run. It’s a form of investment,” he added.
Unlike Reyes and Suares, however, some gold buyers are keeping a wait-and-see attitude.
Antijoy Olattopurath Antony from India spends Dh2,000 with every gold purchase.
“I buy mostly chains and bangles. I like buying gold jewelry because it is a good asset and it can be liquidated very easily when you’re in need of cash,” he said.
However, even with the price of gold dropping to its lowest in five years, Antony isn’t tempted to go to the shops yet. He said he will wait for the prices to drop further.
“I will wait because I heard that gold prices will go lower than ever in the last ten years,” he said.
Gold jewelry retailers in the UAE, however, said there have been plenty of people taking advantage of the low price. As more buyers are expected to flock to the jewelry stores over the next few days, sellers are anticipating their sales to increase by as much as 20 per cent this year.
“We area already experiencing a significant uptake in gold jewelry sales, not just in Dubai but all over the whole GCC region,” said Karim Merchant, Group CEO and managing director, Pure Gold Jewellers.
Tawhid Abdullah, chairman, Dubai Gold and Jewellery Group, said the sharp decline will translate into incremental sales if it sustains for a few days.
“We are yet to see if the sudden decline has encouraged retail activity substantially. It is too early to draw any conclusion,” he said.
By Cleofe Maceda
