Dubai’s Gold Souq. Gold posted a second straight weekly decline that trimmed this yr’s rally to 18 per cent however remains to be the very best performer on an index of 22 uncooked supplies.
Picture Credit score: Gulf Information Archives
After a yr that noticed sluggish gold gross sales within the UAE following the introduction of value-added tax (VAT), jewellers are respiratory a sigh of releif; they are saying there may be an upward development available in the market forward of Eid and the summer season season.
UAE-based jewellers mentioned there are a number of causes for the change of coronary heart. Chatting with Gulf Information, Pleasure Alukkas, chairman and managing director of jewelry chain Joyalukkas Group, mentioned: “We now have seen our pre-Eid gross sales volumes go up 15-18 per cent in comparison with final yr. A serious purpose for that is that folks have gotten accustomed to paying VAT. Final yr when VAT was launched, it was a brand new idea for gold patrons they usually considered it as a further price, subsequently, [they] shunned shopping for the yellow steel. However that has modified now. And persons are as soon as once more exhibiting religion in gold and diamond purchases.”
Prospects choose gold bracelets at a store within the Dubai Gold Souq. India’s demand additionally
boosted gross sales within the UAE’s gold market, a key supply for the Indian market.
Picture Credit score: Megan Hirons Mahon/Gulf Information Archive
One other causes for the optimistic sentiment is that the authorities has introduced the waiver of VAT on gold purchases for worldwide guests. And whereas the quantity of transit patrons have taken a nosedive due to the current grounding on Jet Airways’ worldwide flights to the UAE, international shortage of dependable funding selections imply individuals – particularly South Asians – are nonetheless eager on the honeyed steel.
Pleasure Alukkas is chairman and managing director of one of many greatest jewelry chains within the UAE
Picture Credit score: Virendra Saklani / Gulf Information
Alukkas mentioned his jewelry chain has launched an Eid and summer season promotion known as “Golden Summer time Shock”. “We now have timed it round Eid as persons are more and more looking to buy gold and diamond throughout this time. Consumers may have the possibility to win as much as 200 gold bars. They can even be gifted a free gold coin on buy of diamond and polki jewelry.”
Consumers who purchase Dh500 value of gold jewelry will likely be entitled to at least one raffle coupon. These shopping for Dh500 value of diamond jewelry will get two. Moreover this, with each Dh3,000 value diamond, polki and pearl jewelry buy, consumers will get a one gram 22ok gold coin free.
The provide is legitimate till August 17.
Abdul Salam KP, group govt director of Malabar Group, additionally famous a 10 to 15 per cent improve in gold gross sales quantity. “Regardless of the gold worth taking pictures up on Friday (Might 31), we noticed a rise in gross sales volumes. I foresee costs to go up additional, [but] in fact that depends upon international sentiments and the geo-political state of affairs.”
Abdul Salam KP, Group Govt Director for Malabar Gold and Diamonds
Picture Credit score: Equipped
“We [have seen] an increase in gross sales since Akshaya Triti. Our pre-Eid gross sales [are] undoubtedly wanting brighter than final yr. The buyer sentiment is optimistic. One other level in consideration is that South Asians view gold as an funding. With the worldwide situation not wanting very optimistic with respect to sure investments, gold appears to be selecting the curiosity of consumers as soon as once more.”
KP added that the group will likely be providing particular costs on its pendant collections on its numerous present objects.
Anil Dhanak, managing director of Kanz Jewels, mentioned the VAT refund for worldwide vacationers introduced by the UAE authorities in November final yr, has positively impacted retail jewelry retailers based mostly in Dubai Gold Souq.
“Since final November, we now have seen a 15 per cent improve in gold gross sales quantity within the nation,” mentioned Dhanak.
Anil Dhanak, Managing Director of Kanz Jewellers just lately arrange Kanz Movies to make mid-budget Bollywood fare.
Picture Credit score: Virendra Saklani/Gulf Information
“For us 75 per cent of our clients are worldwide vacationers, together with [from] the GCC. The remaining are from the UAE. The gold fee jumped 2 per cent on Friday, marking the very best acquire the final seven weeks. The share market is down and in such a situation, gold turns into a most popular alternative of funding particularly amongst Asians.”
He predicted gold charges would climb additional within the coming weeks, owing to international sentiments.
Karim Service provider, Group CEO of Pure Gold, mentioned the market shouldn’t be again to pre-VAT tendencies. “The sentiment has undoubtedly improved however we’re not there but. This weekend, (Might 31 and June 1) we noticed a spike in our gross sales volumes regardless of the gold worth taking pictures up. Volumes are up 7 per cent compared to the weekend earlier than Eid final yr.”
He added his particular version assortment for Ramadan is being picked up by consumers. “It’s a calligraphy allay pendant with gold and diamond. Value vary of that is from Dh899 to Dh1,299. Gifting is an enormous development throughout Eid and we’re providing particular costs on these merchandise.”
Karim Service provider, group ceo, Pure Gold
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“We count on the gold worth to stay regular, perhaps a slight improve, however nothing too unstable except there are geo-political causes impacting [it].”
Pure Gold is assured of its providing; it says the agency’s gold and diamonds affords are unmatched available in the market. “In truth, we now have a suggestion for purchasers whereby in the event that they discover a jewelry piece with the identical weight of gold and diamond elsewhere available in the market for a less expensive worth, we are going to refund double the distinction quantity as loyalty factors to allow them to accumulate it and encash it within the close to future,” mentioned Service provider.
I suppose gold remains to be glowing.