UAE Gold Shoppers Enjoy 25% Off Making Charges Amid Price Rise

Gold shoppers in the UAE are once again getting big savings. Many jewellery stores are giving straight discounts of 25% or more on making charges. This is happening as the Dubai gold price stays high at Dh376 a gram for 22K gold.

One of the biggest jewellery retailers, Kalyan Jewellers, has started a special promotion called a “double discount.” In this campaign, they are giving 25% off on making charges and another 25% discount on purchases above Dh7,500. This shows how the gold price has now become the most important factor in people’s decision to buy jewellery.

Retailers say that since gold is very costly these days, the only way to attract shoppers is by offering discounts on making charges. Making charges are the extra costs added by jewellers for designing and crafting gold jewellery.

Shoppers Want Discounts More Than Anything

“Every customer now asks the same question – is there a discount on making charges?” said one gold retailer. “If we say no, the customer will leave and go to another shop. It is simple. People no longer care if we say that making charges is important for our business. They only want discounts.”

This has changed the traditional way of selling gold and jewellery in the UAE and Gulf markets. Earlier, people used to buy gold whenever they wanted, but now sales mostly happen only during promotions or when prices fall.

When Do People Buy Gold Now?

Today, gold shopping in the UAE happens in short bursts during special seasons. These include:

• Eid sales

• December holiday season

• Indian festivals like Akshaya Tritiya and Dhanteras

According to recent data from the World Gold Council, demand for jewellery in both the UAE and Saudi Arabia has dropped sharply. This shows that peak shopping periods are shorter than before, and sales are weaker. For jewellery businesses, this means less cash flow, which can be a big problem.

Concerns of Retailers

So far, jewellers have not cut down on the number of stores or reduced staff. But there is growing worry. If sales keep falling, they may have no choice in the future.

Some retailers explained that even new jewellery collections did not get much attention from buyers. The high gold prices made people avoid spending, even on attractive designs.

Shoppers are also not convinced by the idea that they should buy now because prices will only rise in the future. A retailer said, “That argument does not work anymore. If gold is Dh376 today plus making charges, it already feels too expensive for buyers. People worry about their budgets today, not tomorrow.”

Current Gold Price Trend

On the global market, gold has been moving strongly. Earlier today, gold prices shot up to $3,385 an ounce after the US President criticized Federal Reserve official Lisa Cook. Prices then came down slightly to $3,370 an ounce, but analysts say gold is still likely to rise again.

Experts believe that gold could reach $3,400 an ounce once the US makes an interest rate cut in September.

For UAE shoppers, this is not good news. If the Dubai gold price rises again to Dh380 a gram for 22K gold, it will be a big blow for the new sales season starting from September.

Why Are Making Charges So Important?

In the jewellery business, making charges are the fees jewellers take for crafting and designing the jewellery. This is usually added as a percentage of the gold’s base price.

For example, if someone buys a necklace worth Dh10,000 in gold, the charges may be an additional Dh1,000 or more. This is where jewellers make their profit. But now, because shoppers are only focusing on discounts, these making charges have become the main target for promotions.

Retailers believe that customers today are smarter and compare shops before making a purchase. If one store offers discounts on making charges and another does not, the buyer will easily switch to the cheaper option.

Festivals and Seasonal Sales

Traditionally, the UAE has always been one of the biggest gold markets in the world. Gold is not just bought for weddings or investment, but also as gifts during festivals.

• During Eid, families buy gold jewellery as part of the celebrations.

• In December, tourists and residents alike shop for gifts.

• During Akshaya Trithiya and Dhanteras, Indian families in the UAE buy gold as it is believed to bring good fortune.

But now, shoppers are only spending when there is a big discount campaign or when they expect prices to drop.

Changing Habits of Gold Buyers

The habits of gold buyers in the UAE are clearly changing. In the past, people bought gold regularly without worrying too much about price. It was considered a safe investment.

Now, because prices are very high, shoppers wait for the “right time.” For many, this means waiting for promotions, special sales, or big discounts.

Some shoppers also feel that even if gold prices go higher later, it does not help them today. They are more worried about how much money is leaving their pockets at the time of purchase.

The Road Ahead for Jewellery Stores

Jewellery retailers are now under pressure to come up with creative promotions. The focus is no longer only on beautiful designs or collections, but mainly on how much discount they can give on making charges.

Some jewellers believe this trend is here to stay. Discounts may become a permanent part of the UAE gold market. Others fear that if this continues, it could hurt the profitability of the industry, as making charges are the main way for jewellers to cover their costs.

Gold remains one of the most loved purchases in the UAE, but high prices are making shoppers more careful. Discounts on making charges have now become the only way to keep customers interested.

With the Dubai gold price sticking to Dh376 a gram for 22K gold, and chances of rising further, the jewellery market faces both challenges and changes. The coming festive season will test whether these discount strategies are enough to bring shoppers back in large numbers.

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