Gold stores activate their sales with discounts on “workmanship”

Gold prices continued to rise, for the third week in a row, achieving at the end of last week price increases ranging between 5.75 and 10 dirhams per gram of various karats, compared to their prices at the end of the previous week, according to the price indicators announced in Dubai and Sharjah, while the total price increases achieved by a gram of the yellow metal during three weeks reached 41 dirhams.

Officials of gold and jewelry outlets told Emirates Today that the markets are currently witnessing high levels of competition, especially with stores offering discounts that include “workmanship” fees on various gold jewelry. They expected sales to witness growth of varying rates on jewelry and bullion, in light of continued expectations of record price increases during the coming periods.

Director of the international jewelry department at Titan Jewelry, Aditya Singh, told Emirates Today: “It is expected to record growth in sales of gold jewelry during the coming period, supported by the demand of a segment of residents, especially with gold being viewed as a hedge, a safe haven, and an option to resort to when searching for stability.”

He added: “This conviction is not affected by geopolitical variables or the rise in gold prices. On the contrary, in times of uncertainty, people tend toward gold instead of staying away from it.”

Singh expected a shift in the pattern of purchases rather than an increase in their volume, through moderation in the average value of the bill, with a greater demand for lightweight items and gift options.

He said: “However, demand is likely to maintain its levels, as we have observed a gradual increase in inquiries from customers inside stores about purchasing gold jewelry, which is a positive and encouraging indicator that supports sales growth expectations.”

For his part, the director of the “Ricky Gold and Jewelry Trading Company,” Ricky Dahnak, said, “Some stores compete to stimulate their sales by offering discounts on (workmanship) fees to attract customers,” pointing out that the discounts are made in varying proportions according to the stores’ policies in presenting offers.

He pointed out that many traders are buying to hedge against new price increases in gold.

In the same context, the director of the “Dehkan Gold and Jewelry Trading Company,” Jay Dehkan, said, “Offers on (workmanship) fees are one of the means that many stores resort to to stimulate sales and provide incentives to customers.”

He expected to “Emirates Today” that some dealers would continue to buy gold, in light of expectations of continued price increases globally.

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Gold prices

The price of a gram of 24-carat gold reached 582.25 dirhams, an increase of 10 dirhams, while the price of a gram of 22-carat gold reached 539 dirhams, an increase of 9.25 dirhams. In turn, the price of a gram of 21-carat gold reached 517 dirhams, an increase of nine dirhams, and the price of a gram of 18-carat gold reached 443 dirhams, an increase of 7.5 dirhams. For its part, the price of a gram of 14-carat gold reached 345.5 dirhams, an increase of 5.75 dirhams.