Jewellers in the United Arab Emirates (UAE) are expecting that the Festival of Lights Deepavali and Dhanteras will bring momentum in their sales as there has been a drop in gold prices. Various jewellers have announced campaigns promotions and discounts on the jewellery items to attract customers.
Since early September, there has been drop of five per cent in gold prices as it hit AED 4,986 per ounce, the highest since August last year. Spot gold was AED4,754 an ounce on Thursday after hitting two-month low at AED4,628 per ounce on October 6. On Thursday, one gramme of 24-carat gold was at AED157 from AED160.50 per gramme just a month ago in the UAE.
TS Kalayanaraman, chairman and managing director of Kalyan Jewellers said, “We are hopeful that the festive season will trigger momentum in sales and there will be an uptick.”
Many jewellers in the UAE including Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, Pure Gold Jewellers and Bafleh Jewellery have announced promotion campaigns. They came up with heavy discounts on making charges, free gold coins and hundreds of kilogrammes in prizes during the season.
Deepavali is an important festival for Indian expatriates and buying gold during Dhanteras is considered auspicious and thought of bringing good fortune and prosperity.
Reema Ramesh, an account executive in a Dubai firm, said, “I will buy bangles for me and a jewellery set for my cousin, who is living in India. Right now I am comparing all the promotions offered by the jewellers. I'll pick the best offer. I will buy on Dhanteras, two days before the Diwali festival, on October 17.”
Joy Alukkas, chairman and MD, Joyalukkas Group, said, “Since July this year, UAE retailers have benefited from an influx of Indian buyers who are taking advantage of the approximately 13 per cent difference in prices since India implemented GST across the country.
He said, “This upsurge is expected until early next year, and along with the coming festive season, since the gold prices have also dropped, we expect to see a sizeable jump in sales of gold and diamond jewellery.”
Shamlal Ahamed MP, managing director - International Operations, Malabar Gold & Diamonds, said, “We have seen a positive trend in jewellery sales in October. Recent drop in gold price along with the starting of Deepavali has helped us to achieve this positive trend."