Gold jewellery investors in the UAE have witnessed their investments grow by up to 30% over the past year, driven by consistent increases in gold prices.
Anil Dhanak, Managing Director of Kanz Jewels, highlighted that someone who bought Dh5,000 worth of 22K gold jewellery last year—focused purely on the gold content—could now enjoy a gain of 20-30%, or roughly Dh1,000 to Dh1,500, before deductions.
However, he warned that returns can vary based on factors like timing, karat, and the cost attributed to gold versus design and making fees.
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“After factoring in making charges, wear, tear, and resale deductions, the actual profit usually ranges from Dh700 to Dh1,200, depending on the resale purity and value lost in design or craftsmanship,” Dhanak added.
Photo: Anil Dhanak
Earlier this month, gold prices in the UAE hit record highs, with 24K and 22K gold priced at Dh456 and Dh422 per gram, respectively.
Prices have since slightly decreased, aligning with global trends. As of Sunday, 24K gold was priced at Dh453.25 per gram, while 22K gold was at Dh419.50. Spot gold was trading at $3,759.86 per ounce, a 0.53% increase.
Last September, 24K and 22K gold were around Dh322 and Dh298 per gram, respectively, marking a rise of about Dh134 per gram for 24K and Dh124 for 22K over the year.
Chirag Vora, Managing Director of Bafleh Jewellers, indicated that a customer who invested Dh5,000 in gold jewellery last year would see gains of 15-18%, influenced by timing, purity, and making charges.
Photo: Chirag Vora
“Their investment is now valued between Dh5,700 and Dh5,900, proving gold’s consistent value even in uncertain times,” he remarked.
Anuraag Sinha, Managing Director of Liali Jewellery, noted that those who invested in gold in previous years—or own gold coins or bars—are experiencing even greater returns.
“Others might receive lower resale value for intricate jewellery due to making charges, purity, design, etc.,” Sinha mentioned.
Photo: Anuraag Sinha
