While it is well-known for its tall buildings, Dubai has another notable feature, gold. The emirate of the UAE is not only recognized as the Dubai City of Gold, it is the only location on earth that has a Gold Souk exclusively devoted to gold.
In Dubai, you are constantly surrounded by gold that shines, sparkles and reflects a gleaming glow at you. From the enormous gold jewelry chains in the malls, to the gold piled high in cubbyholes in the Gold Souk in Deira, the shiny yellow glimmer always beckons.
However, with gold jewelry readily available all throughout Dubai, knowing what to buy and where to buy it can be tough. We consulted gold expert Mamtha Maria Frances of the Dubai Gold and Jewellery Group (DGJG), the foremost party for jewelry trade in the emirate, to help us navigate the maze of product, and leave with the piece we want, at the price we want.
Why is Dubai good for gold?
Although one may think that the gold business in Dubai is centuries old, it is not. The gold business in Dubai dates back only to the early 1900s, when traders began selling gold along with pearls and spices by Dubai Creek. Initially, the Gold Souk was a few pop-up stalls. However, in the 1970s, with the explosion of wealth from oil in the United Arab Emirates, Dubai added a great influx of visitors and the gold trade in the city began to thrive.
Currently, the UAE ranks as the sixth-biggest exporter of gold globally. Between 20-40% of the world’s yearly gold stock is estimated to pass through Dubai, which implies that the city has an extensive variety of gold jewelry for a wide spectrum of local and international buyers.
It is equally safe to buy gold in Dubai. Prices are among the best in the world, with only a 5% VAT, but have other advantages as well, such as strict regulations on purity as well as pricing to protect buyers. Authorities frequently inspect items sold by vendors. For instance, the Dubai Gold & Jewelry Group (DGJG), made up of over 600 members of the jewelry trade, helps to ensure uniformity in pricing. Prices are posted, and dealers will clearly disclose the gold content and price per gram of jewelry. When you buy gold jewelry you will receive a certificate stating the gold content and weight.
What should I know before buying gold?
Although you don’t need a degree in economics, it won’t hurt to do some research before purchasing. The price for gold is weighted on a price per gram basis, and, since Dubai uses international gold prices, that weight changes daily. Most gold shops also pay attention to those rates, which account for 80-90 percent of the final cost, so they have to be consistent in the pricing.
You can see the day’s market rate online because DGJG has a useful rate checker. In addition, most gold shops have real-time prices posted. Savvy shoppers usually watch the trend of prices and try to see if there might be a dip coming. Just knowing the value of today strengthens your buying power.
The crafting or manufacturing charge is what makes up the price of the item. “The crafting charge varies based on design, quality, and finish. You can only negotiate on this crafting. The gold price itself isn’t negotiable,” states Mamtha Maria.
When can I haggle the price of gold?
Since prices of gold in Dubai are based on weight (Vendors will weigh your items), the only room for negotiation is on the making price. This does somewhat limit potential savings; after all, how much could a vendor be willing to drop the price. However, it is still worthwhile to ask if they will discount the price.
Many consumers are seeking a 25 dollar discount off the stated price, but you may want to simply walk away as a negotiating tool. Just remember that complicated pieces will have a larger making charge, and try to negotiate, especially in smaller guilds or if you are buying multiple items.
Where should I buy gold?
The city is home to many gold shops located within the shiny malls of Dubai Mall, and a few jewelry chains even have shops in supermarkets. Options also include the Dubai Gold and Diamond Park, which is an indoor mall composed entirely of gold, diamond, and gem boutiques.
Nonetheless, the Gold Souk is the main draw for buying gold. It is an integral stop on in nearly all Dubai city tours and is the first stop for both visiting and local gold buyers.
Mamtha Maria explains, “The best place to purchase is Dubai Gold Souk and its new Gold Souk Extension which are next to each other. They have over 400 gold and jewelry stores, which gives you options, choice, and the best quality of jewelry.”
The original Gold Souk has a focus on traditional Arabian and Indian jewelry, while the new extension appears to be more modern. You could easily spend a day at either souk searching for – over the top, traditional wedding and vintage necklaces and bracelets; trendy, modern rings and earrings; and lighter, thinner styles for everyday wear. Don’t just settle on the first shops you see! The smaller stores in the deeper recesses of each souk tend to have less traffic and more flexibility on price.
What types of gold are popular?
It is challenging to identify a particular category of gold jewelry that meets all current buyers’ needs. As per Mamtha Maria, “People all over the world have very different tastes and preferences.” “So, there really can’t be a specific design that is much better than others. But we are aware that lighter weight jewelry is favored among younger consumers.”
An alternative trend is the increasing desire for an original piece, a trend that jewelry chains have supported with their offerings of new and seasonal collections. “Jewelry lovers are demanding design exclusivity like they have never done before and in recent years we have certainly noticed a dramatic increase in the desire for branded jewelry,” states Mamtha Maria.
Given that there are likely around 10 million gold items available at the Gold Souk at any point in time, you could make a serious case that there is no better place to find that distinct, one-of-a-kind piece of gold than Dubai.