By Gavin Gibbon
Customers looking to take advantage of low gold prices during annual festival
Gold retailers in Dubai are bracing themselves for a buying frenzy from Friday on the first day of Diwali.
Dhanteras, as it is known, is the day Hindus consider the most auspicious time to buy gold jewellery.
However, Karim Merchant, CEO and managing director of Pure Gold Jewellers, told Arabian Business that business has already been swift.
“Dhanteras starts tomorrow but the build up to the festival has already started and it is better than expected,” he said.
Retailers have expressed hopes of five to 10 percent higher sales in gold this year amid lower prices due to a slowdown in the global economy, the continuing trade war between the US and China, fluctuating oil prices and increasing geopolitical tensions.
Shamlal Ahamed, managing director, international operations, Malabar Gold & Diamonds, added: “The sales are showing an upward growth during this season due to the festivities and associated gifting. People believe in gold being one of the best investments. All our stores have seen increased footfalls in the past few days,”
Gold coins, gold bars and 22 karat jewellery are in great demand during this season.
Tawhid Abdulla, chairman, Dubai Gold & Jewellery Group, said: “Diwali is a very Indian-centric occasion, hence 22 karat gold and diamond jewellery get sold the most; millennials, however may choose 18 karat lifestyle jewellery as well.”
Merchant agreed that there was a clear discrepancy when it came to the tastes of younger and older shoppers.
He said: “Customers are mainly looking to buy lightweight contemporary and antique design jewellery this Diwali. The younger generation prefer more stylish and modern designs in 18 karat while the more traditional customers prefer 22 karat gold designs and polki (unpolished) diamond jewellery. This is the trend we are seeing."For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.