High gold prices drive UAE shoppers toward diamond and gemstone-studded jewellery

Retailers report a 30-40% rise in demand for diamond jewellery and gold adorned with precious stones like rubies and emeralds. Younger buyers prefer lightweight designs, 18K over 22K gold, and customised styles

Dubai: Jewellery retailers in Dubai and across the UAE are witnessing a significant shift in consumer preferences, with increasing demand for diamond jewellery and gold ornaments embellished with precious stones. The high price of gold is a key factor driving this trend, as customers explore alternative options that offer both aesthetic and investment value.

Gold prices peaked at $2,790 per ounce last year due to global economic factors, including interest rate adjustments by the US Federal Reserve, geopolitical uncertainties, and increased purchases by central banks. As of January 1, 2025, gold prices stand at $2,624.49 per ounce, with Dubai rates for 24k, 22k, 21k, and 18k gold at Dh318, Dh294.50, Dh285, and Dh244.25 per gram, respectively.

“High gold prices have led consumers to diversify their choices, exploring categories like uncut diamonds and coloured gemstones such as rubies and emeralds,” said Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds. “Post-COVID, we’ve observed a substantial increase in interest for diamond jewellery and solitaires, fueled by the ‘revenge spending’ phenomenon and a focus on living in the moment.”

Retailers report a 30-40% rise in demand for gold jewellery accented with diamonds and other precious stones. Additionally, there is a noticeable uptick in interest for lightweight jewellery and innovative designs, reflecting evolving consumer lifestyles and preferences.

Aditya Singh, Head of Jewellery International Business at Titan Company Limited, highlighted the growing appeal of diamonds for their versatility, emotional significance, and value as an investment. “We are also seeing a demand for customised and unique designs as customers seek jewellery that reflects their individuality,” Singh noted.

Titan’s head of jewellery international business noted that there had been an increasing demand for customisation and unique designs, as consumers seek jewellery that reflects personal style and individuality. In addition, consumers are becoming more conscious of ethically sourced materials. Shamlal Ahamed said they’re also seeing a preference for lightweight jewellery as shoppers want ornaments that fit their personality and style.

With consumers becoming more conscious of sustainability in their purchases, ethical sourcing is another emerging trend. Retailers are adapting to this shift by offering responsibly sourced materials and lightweight designs that align with contemporary fashion and lifestyle choices.

“Younger generations are driving the shift toward diamond-studded jewellery and transitioning from traditional 22k gold to 18k options,” said Joy Alukkas, Chairman of Joyalukkas Group. “This change reflects a broader trend toward modern, versatile jewellery that complements their personal style.”

Retailers are encouraged to adapt their offerings to align with these evolving consumer preferences, focusing on lightweight designs, innovative styling, and ethically sourced materials to capture this growing market segment.

Retail Jeweller ME News