UAE buyers shift focus from gold jewellery to bars and coins amid market uncertainty

Retailers report a drop in store footfalls and slower jewellery sales, while demand for investment gold has increased

Dubai: Gold jewellers in the UAE are reporting a change in sales patterns and a drop in footfalls as buyers’ preferences are shifting amid changes in local and global market dynamics, as reported by the Khaleej Times, which spoke to several jewellery retailers.

UAE residents are shifting from buying gold jewellery to wealth preservation as demand for gold bars sees an increase amid uncertainty linked to military conflicts. “While travel disruptions have led to a temporary softening in sales volume for jewellery, we are seeing a magnificent surge in investment demand. The temporary airport closure created logistical friction,” said Ramesh Vora, Founder, Bafleh Jewellers.

He added that local and regional buyers are shifting their focus to 24-karat bars and coins: “We aren’t seeing a ‘drop’ in interest; rather, a sophisticated migration from ornamental buying to strategic wealth preservation.”

John Paul Alukkas, CEO of Joyalukkas Jewellery, said there are short-term shifts in sentiment, but it is important to look at the broader picture.“Gold purchases are tied to life’s meaningful moments for many nationalities, like weddings, anniversaries, celebrations, etc., and these emotions don’t pause for most. What we’re observing now is a more considered and deliberate buyer, rather than a decline. People are still investing in gold. They’re just taking slightly more time with their decisions,” he added.

Shamlal Ahamed, Managing Director, International Operations, Malabar Gold & Diamonds,said regional tensions have created uncertainty among consumers, resulting in a decline in store footfalls and jewellery sales.“We are observing a notable rise in demand for gold bars and coins. This was anticipated in the short term, with customers currently taking a cautious stance, choosing to postpone discretionary purchases until there is more clarity regarding the broader environment. However, we remain optimistic that overall sales will recover once the situation stabilizes,” he said.

Aditya Singh, Head -International Jewellery Business, Titan Company, said jewellery is not considered an essential commodity during these uncertain times and daytime walk-ins have been low.“Several stores that remain open continue to see normal levels of activity, particularly during the evening hours and in mall locations. Overall, public confidence in the UAE’s safety and security measures remains strong, and malls across the country continue to operate normally,” he added.

Singh added that stores that are open have continued to conduct business as usual. “At this stage, there has not been a significant overall increase or decrease in jewellery sales compared with typical levels,” he stated.

Karim F Merchant, Group CEO and MD, Pure Gold Group, said uncertainties typically create short-term caution among consumers, but the UAE market has demonstrated remarkable stability.“This resilience is largely driven by the confidence of residents and visitors in the country’s strong economic fundamentals and safe haven status. Gold continues to be viewed not only as a cultural asset but also as a trusted store of value, which has helped cushion demand even during this period of heightened geopolitical tension,” he said.

Retail Jeweller ME News