As gold prices remain elevated, more shoppers in Dubai and the UAE are turning to diamond jewellery, according to retailers. Those who still choose gold are increasingly opting for 18K pieces.
Gold prices reached a historic high of $2,790 per ounce last year, driven by factors such as interest rate cuts from the US Federal Reserve, ongoing geopolitical tensions, and central bank purchases. As of Wednesday, the price of gold was recorded at $2,624.49 per ounce. In Dubai, the cost for various gold karats on the first day of 2025 was Dh318 per gram for 24K, Dh294.50 for 22K, Dh285 for 21K, and Dh244.25 for 18K.
“Due to the high price of gold, customers have started exploring alternative jewellery options such as uncut diamonds, rubies, and emeralds,” said Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds. “People are more open to other categories. Since the Covid-19 pandemic, we’ve seen a significant shift in consumer interest towards diamond jewellery and solitaires.”
Ahamed added that this shift reflects a trend of “revenge spending,” where people are focused on living in the present, rather than saving for uncertain times.
Demand for gold jewellery adorned with diamonds, rubies, and emeralds has surged by about 30-40%, Ahamed noted.
Aditya Singh, Head of Jewellery International Business at Titan Company Limited, also observed a clear rise in the demand for diamond jewellery. “Consumers are increasingly drawn to diamonds for their timeless appeal, versatile styling options, and emotional value. Many now also view diamonds as an investment, considering them a store of value and a symbol of special moments,” Singh explained.
Singh further mentioned that many consumers are now seeking custom-designed jewellery that aligns with their personal style. Additionally, there’s a growing awareness about ethically sourced materials, prompting shoppers to look for more sustainable options.
Ahamed also highlighted the shift towards lighter, more wearable jewellery. “Consumers are opting for lighter, more innovative designs that match their individual personalities and lifestyles. This change is also linked to how people dress for office, day wear, or events,” he said. As a result, customers are no longer as focused on the weight of their ornaments as they were before.
Joy Alukkas, Chairman of the Joyalukkas Group, also observed the trend. “The younger generation is increasingly buying diamond-studded jewellery and gradually moving from 22K to 18K gold,” he noted, emphasizing the growing popularity of lightweight designs.
As the demand for diamonds and customisable jewellery options continues to rise, it’s clear that Dubai’s jewellery market is evolving to cater to a new generation of shoppers who prioritize style, investment value, and personal expression.
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