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Gold jewellery shoppers in Dubai and the UAE are increasingly opting for the more affordable 18K variant over the costlier 22K due to skyrocketing precious metal prices. Industry experts note a simultaneous rise in demand for diamond-studded jewellery, driven by the high cost of yellow metal.

In Dubai, gold prices hit an all-time high on October 23, with the 24K variant reaching Dh333.0 per gram and 22K soaring to Dh308.25 per gram. The 21K and 18K variants also set new records at Dh298.5 and Dh255.75 per gram, respectively. By Monday evening, these prices had slightly adjusted to Dh331.75, Dh307.25, Dh297.5, and Dh255.0 per gram for 24K, 22K, 21K, and 18K, respectively.

22K gold jewellery remains the most popular and expensive in Dubai, particularly among Asian shoppers, due to its purity. However, the unprecedented gold prices are reshaping consumer preferences and trends in Dubai and the UAE. As previously reported by Khaleej Times, shoppers are now leaning towards smaller pieces of jewellery for affordability, and manufacturers are responding with more cost-effective options.

With the upcoming Indian festivals of Diwali and Dhanteras, the Dubai Gold Souk is experiencing a surge in gold and jewellery buyers taking advantage of the offers and discounts from over 300 retailers. Rashid Al Harmoodi, Senior Director for Property Management at Ithra Dubai, highlighted the importance of these festive occasions in reinforcing the Dubai Gold Souk's position as a global gold trading hub.

Anuraag Sinha, Managing Director of Liali Jewellery, noted a significant increase in demand for 18K jewellery as gold prices rise. He attributes this shift to the affordability, durability, design versatility, and stylish investment of 18K over purer but more expensive options. Chirag Vora, Managing Director of Bafleh Jewellery, added that while there is a 15 to 18 per cent difference in gold prices between 18K and 22K, the making charges for 18K are higher, making the overall pricing comparable. However, some lightweight 18K collections are proving popular due to their reduced weight compared to 22K.

Afzal Arakkal, Director of Arakkal Gold and Diamonds, echoed these sentiments, emphasizing the appeal of 18K jewellery for its combination of affordability, significant gold content (75 per cent), and luxurious appearance. As gold prices continue to rise, 18K has emerged as a cost-effective alternative for those seeking quality and durability in their jewellery.

Arakkal also observed a trend of UAE shoppers shifting from gold to diamond jewellery, particularly as gold prices increase. Diamonds, seen as a significant investment and status symbol, are becoming more attractive as consumers look for alternatives to high-priced gold pieces. This shift reflects evolving consumer preferences and market dynamics.

Chirag Vora of Bafleh Jewellery noted a growing demand for diamond jewellery in small sets and pieces with colored gemstones like emerald and ruby, driven by both price and design. Anuraag Sinha of Liali Jewellery highlighted that diamond jewellery is popular for gifting, symbolizing elegance and prestige, which has boosted its appeal during festivals like Diwali, despite rising gold prices.

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