Gold Price surges in UAE – Shoppers highlights Diamond Price Protection

Globally celebrated yellow metal “Gold” reached the highest price of $2600 per ounce in the market. This has made the jewellery shoppers turn their attention to diamonds. The history of UAE’s gold industry commenced in the early 1900s. Dubai is known as the “City Of Gold” because of its significant contribution to the UAE’s revenue and economic strength. Approximately $23.9 billion dollars was valued for the imports of gold by the United Arab Emirates (UAE) based on the report given in 2023.

Factors for Gold Price Rise

• Global Economic Uncertainties
• Fear of Inflation
• Geopolitical Factors
• Increase of Gold Demand

  These factors are turning the import of gold upside down hence it pushes the retailers to shift to the notion of Diamond Price Protection.

Diamond Price Protection

Gold is valued higher when it is compared with diamonds. Though diamonds are exorbitant, their value hits the ground when it is exchanged. This is one of the foremost reasons for the buyers’ hesitation to invest in the diamonds. Most of them prefer to invest in ‘Gold’, since the price rises consistently in the market it has made an idea of reconsideration among the buyers. Diamond Price Protection scheme assures that the buyers can receive a handful profits during the buybacks, resale/exchanges. Diamond Price Protection is a creative strategy to attract primarily gold buyers. This scheme is considered an alternate solution to poise the jewellery market with a surpass. They give the assurance that the consumers can sell or trade their diamonds with a guaranteed price. 

Diamond Price Protection also targets the younger consumers who are now considering the diamonds as an investment during their purchase for weddings and other events. New promotional offers have been commenced by many retailers of UAE which primarily focuses on bridal jewels. The rise of Gold price shifted the UAE retailers’ strategy to allure the consumers investing on the jewellery (Diamond) which is a symbol of luxury, is now transferred to a position of investment with financial protection.