Slight Dip in Customer Turnout for Gold

Though the high rates could have an impact on the sales during the upcoming Diwali festival, considered an auspicious occasion to buy gold and diamond jewellery by Indians, major jewellery groups in the UAE have already lined up a host of promotions to meet 
the situation.

P. Sudheer, showroom manager of Joy Alukkas Main Branch in Dubai, said the steep increase in gold rates in the past three days has resulted in the showroom witnessing a fewer customers than in the previous days of the week.

“Three days back, the rate was just Dh114 for a gram,” said Sudheer. “Today morning, it hit the record high of Dh117.50,” he said on Wednesday evening. “Many customers have returned after seeing the high rates. It is usual when there is a big increase in the rate. We also get calls from customers asking for the rate. If they find it is high, they put off their plans to come over
and buy.”

He said the group is launching its Diwali promotions today and expects more people to buy jewellery for
the festival.

A sales representative of Damas said the sale was not very much affected due to the high rates as the group had already launched its Diwali festival season offers.

“It is the festive seasons that usually get us more business here in Dubai unlike in India where we see very good sales during the wedding season too,” he said, requesting not to be named.

“And those people, who know that gold is a good investment, keep on buying it,” he added.

Dubai resident Roy Mathew, who was in Karama Centre to purchase gold on Wednesday evening, said he had no other option but to buy a piece of jewellery as he had to present it to a friend’s family to reciprocate a gift.

“I have to gift them gold only because they had gifted gold to my daughter,” said Mathew. “But, that was when the rate was very low. Today, I have to buy it at a record high rate,” he added.

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