Got old gold? As price nears $3,000, how can UAE shoppers make quick profits?
Dubai: Got some gold? Then sell or trade up.
Because right now, gold is at a level where any consumer having some gold in their holdings can reap some quick rewards.
Because gold has swept to its highest levels of $2,986 an ounce (1 ounce is 28.34 grams) and by the looks of it has every chance to make a clean break past $3,000.
The UAE gold rate meanwhile is now showing Dh335 a gram for 22k and by 9am should see a further spike to reflect today’s bullion rate. Needless to say, this will be the highest ever to date.
“The highest UAE gold rate in 2021 was only Dh222.5 a gram – any customer who bought then and selling now is looking at a profit of Dh100 plus,” said a jewellery retailer. “A lot of customers in recent weeks had been telling us that they had kept their gold bought in 2021 and before to sell or exchange when gold hits $3,000.
“No one could have predicted that there is a good chance it might do so this early into 2025.”
Gold prices gained more than 25% in 2024, and even if it doesn't grow at the same pace this year, there will still be plenty happening. "On average, annual gold price spikes have been 10%-11%," said Shamlal Ahmed, Managing Director of International Operations at Malabar Gold & Diamonds.
"If we assume gold will get to $3,000 an ounce shortly, I think there is enough happening to take it to $3,300 levels this year."
In 2020, the highest UAE gold rate was Dh235, which was when Covid worries were sweeping the world and gold started its steep climb and then in recent months swept past multiple highs.
Now, if anyone retains gold they bought in 2019, the highest UAE 22K gold rate for that year was Dh176. One can clearly see why gold pushing its way towards $3,000 will have many consumers excited – ie., those with gold holdings to spare and not new buyers.
If the gold was bought sometime in the last 6 months or so, the consumer is better off holding on and await a better opportunity to cash in.
In recent days, each tariff threat from US President Trump has set off ripples in stock and commodity markets. US stocks are feeling maximum pressure with the market at correction levels. Gold, meanwhile, has gone in the other direction as investors seek assurance in its safe haven status.
While it's unlikely that Trump would moderate his stance on raising tariffs, gold prices show every chance of pushing higher - and even go on to claim the $3,100 level soon enough.
"We receive enquiries for cash exchange from customers seeking to leverage the value of their gold assets," said Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers.
"The majority of our customers opt to reinvest in jewellery, reflecting the enduring appeal of gold as both an adornment - and a long-term investment."
If it's a cash exchange that the shopper prefers, they must present the original purchase bill - "The transaction can only be processed by the individual whose name appears on the bill," said Kalyanaraman. "This policy is in place to ensure transparency, security, and adherence to regulatory guidelines."
For gold exchange, customers must have the government-issued ID . "The gold is evaluated instantly in our stores with our carat meter analyzer, ensuring a valuation based on purity and prevailing market rates," said Kalyanaraman.
