Diwali Impacts Dubai's Gold Buying Traditions

Less Gold for Same Price: Diwali's Impact on Dubai Residents

On Dhanteras, marking the start of the Diwali festival period, Dubai's gold market was again bustling with shoppers. The famous Gold Souk streets in Deira were packed by Saturday evening as hundreds of residents ventured out to uphold the traditional custom of buying gold—even if this year it means getting less gold for the same amount of money.

Tradition Stronger Than Rates

Dhanteras is one of the key moments of the Diwali celebration, deemed by many as particularly auspicious for purchasing gold or silver. Tradition holds that precious metals bought at this time will bring prosperity and luck for the coming year. This belief is so strong that even the recent gold price surge past 500 dirhams per gram hasn’t deterred buyers from queuing at Dubai’s gold market.

For many families, this occasion is not just an investment but a sacred ritual. Yearly purchases of new jewelry—either for personal use or as gifts—are customary.

Lower Quantity, Same Expense

One of the most noticeable changes, however, is that while budgets have not significantly increased from previous years, the quantity of gold taken home by shoppers has decreased. Most people still set aside the same budget for gold jewelry—between 5,000 and 10,000 dirhams—but the weight of the jewelry obtained is considerably smaller. This shift has led many to choose smaller yet more eye-catching pieces, such as thinner bracelets, small pendants, or jewelry that incorporates stones or other metals along with gold.

New Designs for Old Demands

Jewelry stores have responded to the changing market conditions. Many are putting together collections that suit budget-conscious shoppers. The popularity of lightweight, attractive designs and stone-set or mixed-material pieces has visibly increased. These pieces are not only visually appealing but are also appreciated as investments, especially when considering future resale or exchange.

Jewelry purchasing has become more deliberate: families often predetermine whether a piece is intended more as an investment or for wearing. Choices are made accordingly regarding model, price range, and frequently the store itself. Jewelers aim to follow this logic, ensuring Dubai’s gold market offers products that are not just luxurious but also practical.

Gifting—But More Modest

Gold buying is not just for oneself. The traditions of the holiday include gifting family members and friends. However, this year more residents indicated gifting less gold or opting for smaller-sized jewelry. With rising costs, many have had to scale down on the quantity of gifts, but the intent and ritual remain. Even a small pendant or ring can suffice to complete the festive gesture.

Symbolic Meaning Dominates

Despite rising gold prices, most shoppers approach the matter from more than just a financial perspective. Buying gold is a symbolic act that represents the beginning of abundance, the New Year’s luck, and family unity. Hence, many feel that something needs to be bought, even if it’s just a minimally weighted piece of jewelry. The sentiment of “starting the year well” is more important than the quantity of gold.

Changing Gold Buying Habits in Dubai

Dubai is one of the world’s most renowned gold trading centers, with Indian, Pakistani, Filipino, and Arab communities having strong ties to precious metals. The festive season, especially Diwali, remains a significant period for traders every year. However, recent years of inflationary pressure and rising global gold prices have spawned new habits.

Jewelry stores are increasingly adhering to the “appearance versus value” principle. The offering includes jewelry that appears larger but is made from light alloys or pieces crafted to emphasize visual appeal.

Summary

During this year's Diwali, gold buying remains an important tradition for Dubai residents, though the quantity they get for the same budget has decreased. Despite this, enthusiasm remains high. Shoppers have adapted: making smarter decisions, planning ahead, and seeking new designs for the gold buying experience—not just as an investment but also from aesthetic and cultural perspectives.

(Source: Reports from market shops at Gold Souk in Deira.)