With the recent drop in gold prices, UAE shoppers are increasingly shifting their focus toward investment options. Over the past ten days, major jewellery retailers have reported a surge in customers opting for monthly payment plans. This trend is further supported by a rise in interest across gold trading platforms, where UAE residents see an opportunity to secure gold as a financial asset.
Gold Prices Drop Creates New Investment Opportunities
Gold has long been considered a safe investment during economic uncertainty, and recent price trends have encouraged UAE residents to take advantage. In just days, gold prices dropped by over $200, pushing 22K gold in the UAE to Dh286.75 per gram. This drop has sparked renewed interest among investors, especially those who had been waiting for lower prices to enter the market.
Leading jewellery stores in the UAE are witnessing a shift as traditional buyers of jewellery now approach purchases with an investment mindset. According to Abdul Salam K.P., Vice-Chairman of Malabar Gold & Diamonds, many shoppers invest between Dh1,000 to Dh2,000 monthly through installment plans. This investment strategy enables them to accumulate gold over twelve months, allowing them to collect jewellery, coins, or bars when the period ends.
Gold Investment Options and Flexible Payment Plans
UAE banks and top-tier trading platforms are catering to this interest with tailored schemes, such as gold certificates. Emirates NBD has introduced a program where customers can invest in gold certificates starting at 100 grams. At current prices, this represents a minimum investment of approximately Dh30,000. Investors can redeem these certificates as physical gold or cash at any time, providing flexibility for changing investment goals.
For those seeking a lighter commitment, fractional ownership is also available through trading platforms. This approach allows investors to purchase shares in gold without taking physical possession, making it an attractive option for those focused purely on market growth.
Changing Perspectives on Gold as an Investment
Investors who initially saw the gold market surge are now motivated by its recent price dip. John Diomidius, a Dubai-based trader, noted that while the geopolitical landscape has kept prices high, the market’s recent fluctuations could signal a new entry point. As gold prices shift alongside the global economy, more investors are considering it a long-term asset. The demand for silver has also increased, as it follows a similar upward trajectory in price and market perception.
Jake Townsend, a Dubai-based investor, mentioned that combining gold with silver offers more comprehensive insight into market flows. By understanding how the USD and both metals interact, UAE investors are learning to make more informed buying or selling decisions.
Gold’s Popularity Expands in the UAE
The accessibility of payment schemes, coupled with Dubai’s robust financial platform, is reshaping how UAE residents view gold. What was once seen primarily as a form of jewellery is now embraced as a strategic investment. As financial products evolve, investors in the UAE have a wealth of options to choose from, enabling them to explore new avenues to secure and grow wealth.