UAE shoppers are increasingly splitting their gold acquisitions between traditional jewellery and bullion, signaling a shift toward more value-conscious consumer behavior. Industry executives in Dubai report that as gold prices climb, many residents are moving away from heavy, discretionary jewellery purchases in favor of lighter ornaments or investment-focused products like gold coins and bars.
Gold prices jumped by more than Dh21 per gram on Thursday, reaching a seven-week high amid optimism regarding the potential reopening of the Strait of Hormuz. Spot gold was trading at $4,253 per ounce on Thursday morning. In the local Dubai market, 24K gold was priced at Dh513.75 per gram, while 22K gold traded at Dh475.75 per gram.
John Paul Alukkas, CEO of Joyalukkas Jewellery, noted that consumers are becoming more strategic with their capital. He explained that shoppers view coins and bars as a straightforward, cost-effective way to invest in gold without the added making charges or design premiums associated with crafted pieces. Many customers now split their purchases, buying jewellery for special occasions while acquiring coins or bars for long-term savings.
Alukkas also highlighted a positive trend toward certified, responsibly sourced gold and diamonds. He noted that while jewellery demand has softened in the short term, this reflects a shift in buying behavior rather than a decline in overall interest in gold. The World Gold Council’s second-quarter 2026 data supports this, showing that yellow jewellery demand fell 28 per cent, while demand for bars and coins surged 30 per cent year-on-year.
Anil Dhanak, managing director of Kanz Jewels, observed that consumers are making more value-conscious decisions. Many are opting for lightweight, contemporary designs or prioritizing bullion over larger jewellery pieces. Dhanak noted that buying behavior is closely linked to price movements; when prices rise, customers often purchase sooner to avoid further hikes, whereas declining prices lead to a wait-and-watch approach.
Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, echoed these sentiments, noting that some customers are adopting a cautious approach for heavier, discretionary purchases due to constant price fluctuations. However, he emphasized that jewellery remains the preferred choice for personal adornment, gifting, and celebrating life occasions.
Ahamed added that investment-led purchases are gaining traction among first-time investors. He also noted a trend of customers exchanging existing jewellery for new items, with younger demographics like Millennials and Gen Z increasingly favoring minimalist, stackable designs that combine style with long-term value.
Chirag Vora, managing director of Bafleh Jewellers, stated that the market is witnessing two distinct consumer mindsets. While investment-focused buyers are increasing their purchases of coins and bars to hedge against global uncertainty, jewellery buyers have become more selective. Instead of abandoning the market, many are optimizing their budgets by choosing lighter designs or focusing on specific occasions.
Stay up to date with the latest news by following on WhatsApp Channels. This report was prepared by Waheed Abbas, an Assistant Editor who covers real estate, aviation, and other business stories that directly affect the lives of UAE consumers. He frequently reports on human interest stories as well.
Source: Khaleej Times
