The Dubai gold rate continues to hover at over Dh370 for a gram of 22K gold, with prices for 24K gold reaching a peak of Dh440 per gram. Despite these high prices, many UAE residents are taking advantage of monthly gold instalment schemes offered by leading jewellers in the region. These schemes allow shoppers to purchase gold in instalments, with the option to pay anywhere from Dh1,000 to Dh2,000 per month, or even lower.
- These schemes enable shoppers to ‘delay’ their next purchase of gold until the prices drop to levels they are comfortable with.
- The average monthly instalments are in the Dh1,000-Dh2,000 range, with some retailers offering lower monthly payments.
- At the end of a certain period, shoppers can recoup their payments in any form of gold they want, such as coins, bars, or jewellery.
- Some retailers are offering incentives such as discounts, free gift wrapping, or extended payment terms to sweeten the deal.
According to a jewellery retailer, the monthly instalment schemes have been the most popular option among UAE residents, especially after gold prices hit $3,500 an ounce. “The best part is there is no requirement to buy after 12 months – you can extend it to the next year too,” said Mandar Khatoo, a Dubai resident. “At the end of the first 12 months, you are eligible for 1-month free from the jeweller.”
| Benefits of Monthly Instalment Schemes |
|---|
| • No requirement to buy after 12 months |
| • Eligibility for 1-month free from the jeweller after 12 months |
| • Ability to recoup payments in any form of gold |
| • Option to extend payment terms |
The jewellery retailer also mentioned that non-residents who are regular visitors to the UAE are opting to sign up for these instalment plans. “For many it’s a realisation that rather than random gold buys, it makes better sense to build their way to the grams or jewellery they want,” said the retailer. Despite the high prices, many UAE residents believe that these instalment schemes are a smart way to invest in gold, allowing them to take advantage of the near-peak prices. “We even have non-residents who are regular visitors to the UAE opting to sign up for the instalment plans,” said the retailer. In recent years, gold prices have been on the rise, with the Dubai gold rate hitting a peak of Dh388 a gram for 22K gold and Dh412 for 24K gold. However, this has also led to a decrease in overall jewellery sales, according to World Gold Council data. Interestingly, gold bars and coin sales have remained remarkably strong, even as jewellery sales fell.
“The customers are now more discerning and are looking for ways to invest in gold that make sense to them. The monthly instalment schemes have been the most popular option with UAE residents, especially after gold hit $3,500 an ounce,” said the jewellery retailer.
This trend is likely to continue, with many UAE residents opting for these instalment schemes to make the most of the near-peak prices. As Mandar Khatoo, a Dubai resident, noted, “At the end of the first 12 months, you are eligible for 1-month free from the jeweller. This means that shoppers can delay their next purchase of gold until the prices drop to levels they are comfortable with.”
Highlights of the Dubai Gold Rate
- Dh370 for a gram of 22K gold
- Dh440 for a gram of 24K gold
- Average monthly instalments of Dh1,000-Dh2,000
- Eligibility for 1-month free from the jeweller after 12 months
Monthly instalment schemes: A system where shoppers can purchase gold in instalments, with the option to pay anywhere from Dh1,000 to Dh2,000 per month, or even lower. Gold bars and coin sales: Sales of gold in the form of bars and coins, which have remained remarkably strong despite the decrease in overall jewellery sales. Non-resident shoppers: Individuals who are not UAE residents but are regular visitors to the UAE and are taking advantage of the monthly instalment schemes. Eligibility for 1-month free: A benefit offered by some retailers, where shoppers are eligible for one month of free gold after completing a certain period of instalment payments. As the gold prices continue to fluctuate, it remains to be seen how long these instalment schemes will remain popular. However, for now, many UAE residents are taking advantage of these schemes to make the most of the near-peak prices, and to build their way to the grams or jewellery they want.
