Gold bullion offers encourage customers to buy… and “local” without fees

Consumers confirmed to Emirates Today that gold and jewelry outlets recently launched offers to sell gold bullion, especially those manufactured locally, without fees, in addition to discounts on imported bullion fees. They explained that these offers and discounts are announced on the pages of social media platforms, or on the storefronts themselves, while most of them are subject to negotiation between consumers and merchants within those stores.

For their part, traders in the gold and jewelry sector said that the offers on bullion aim to stimulate demand, stressing that they have stimulated many dealers to buy during the recent period.

They pointed out that there is currently competition in the bullion sector, which has prompted many stores to put forward these offers, attributing the variation in the offers offered and their lack of specificity to the difference in the cost of fees on bullion, which are called bullion certificate fees or packaging fees.

At the end of last week, gold prices recorded increases with values ​​ranging between 6.25 and 10.75 dirhams per gram of various karats, compared to their prices at the end of the previous week, according to price indicators announced in the Dubai and Sharjah market, which prompted dealers to buy gold bullion as a hedge against the yellow metal recording further increases during the coming periods.

Offers and discounts

In detail, consumer Amjad Saher said: “During the recent period, various gold stores offered offers to sell gold bullion, varying between various discounts on fees of up to 20% in some stores, and offers to sell gold bullion of local origin without any fees,” indicating that this was not available in the markets during the past periods.

For his part, consumer Karim Amer said that he had recently noticed offers in a number of gold market stores, which included bullion with varying discounts on fees, pointing out that these discounts are announced on the pages of social media platforms, or on the storefronts themselves, and most of them are subject to negotiation between consumers and merchants within those stores.

In the same context, consumer Asma Qasim considered that a number of stores offered remarkable offers on gold bullion as a positive aspect, especially since some stores had imposed large price increases on imported bullion in previous periods.

She added that the offers offered included an exemption from fees, and these were concentrated on gold bullion of local origin, in addition to discounts on fees related to imported and Swiss bullion in particular, which are among the most in demand, noting that the offers vary according to the type and weight of the bullion.

Motivational offers

In addition, gold trader, Muhammad Rafiq, told Emirates Today: “The markets witnessed incentive offers in the bullion sector, in the context of competitiveness and the sale of larger quantities, whether those offers were without fees on bullion of local origin, or imported bullion with reduced fees compared to the fees that were previously imposed.”

For his part, gold trader, Raju Bahesh, said: “In light of the rapid changes in the prices of the yellow metal during the recent period, many dealers are turning to buying gold bullion, which has prompted many stores to offer different offers on bullion.”

Bahish explained that “the announcement of offers varies between gold stores. Some of them are made publicly, while others are made upon purchase and negotiation between merchants and dealers inside the stores.”

He stressed that the offers had a positive impact in motivating many dealers to buy bullion during the recent period, which was remarkably evident in the markets through the increase in demand and interest in buying bullion.

In the same context, gold trader, Ricky Dahnak, said: “There is competition in the bullion sector in the markets currently, which has prompted many stores to adopt a policy of offers, whether announced or unannounced through negotiation within the stores.”

He stressed that “the return of gold prices to rise during the recent period, prompted many traders to buy gold bullion in light of expectations of the yellow metal recording further increases in the coming periods.”

He attributed the discrepancy in the offers presented and their lack of specificity, to the difference in the cost of fees on bullion, which are called bullion certificate fees or packaging fees, which vary between local and imported bullion, or according to the sizes and weights of the bullion.

As for the Chairman of the Board of Directors of the Dubai Jewelery Group, Tawhid Abdullah, he said: “The offers presented in the markets, whether on bullion or gold jewelry, are due to the marketing policies of the sales outlets, which aim to stimulate sales, which raises competitiveness in the markets, which has a positive impact, whether on merchants or consumers.”

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Gold prices

The price of a gram of 24-carat gold reached 568.25 dirhams, an increase of 10.75 dirhams, compared to its price at the end of the previous week, while the price of a gram of 22-carat gold reached 526.25 dirhams, an increase of 10 dirhams.

In turn, the price of a gram of 21-carat gold reached 504.5 dirhams, an increase of 9.5 dirhams, and the price of a gram of 18-carat gold reached 432.5 dirhams, an increase of 8.5 dirhams, and the price of a gram of 14-carat gold reached 337.25 dirhams, an increase of 6.25 dirhams.