In the UAE, jewellers offer gold jewellery crafted with purities of 22K, 21K, and 18K. With precious metal prices soaring to new heights, there’s a rising demand for more economical options. In India, 14K jewellery sees high demand as festival and wedding seasons approach, despite record prices. But will Dubai jewellers find a market for this affordable variant?
Vinay Jethwani, Partner at Meena Jewellers, highlights that in the UAE, jewellery is only officially recognised at 12K and above.
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Anil Dhanak, Managing Director of Kanz Jewels, notes they don’t currently offer below 18K.
“In diamond jewellery, there’s a global trend toward 14K and 9K, due to the diamond’s value. However, our predominantly Indian clientele prefers 22K for its purity, tradition, and long-term value,” he explained.
Dhanak argues that lowering purity contradicts gold’s investment value, stating there are “no immediate plans to offer 14K or 9K”.
In the UAE, 24K and 22K gold prices have reached record highs of Dh502.5 and Dh465.25 per gram, respectively. Globally, gold surpassed $4,100 per ounce.
In India, 10-gram gold in 22K, 18K, and 14K costs Rs117,650 (Dh4,868 or Dh486 per gram), Rs96,330, and Rs74,880, respectively, as of Tuesday.
Anil Dhanak suggests that lower-purity jewellery won’t see significant demand in the region.
“Gold purchasing here is tied to investment and tradition, not just fashion. Purity assurance is crucial, as gold is viewed as future security. Buyers prefer standard purities like 18K and 22K for cultural and financial reasons,” he added.
Vinay Jethwani of Meena Jewellers observes that jewellery buyers are discerning.
“Cost-conscious buyers usually reduce weight rather than compromise purity. This spans all age groups. Gold purity is trusted, and customers tend to choose less gold of higher purity over more gold of lower purity,” he concluded.
