UAE Gold Market: Profits and Reinvestment

Gold Market Rollercoaster in UAE: Residents Profit, Then Reinvest

As the price of gold reached a historic high in April in the United Arab Emirates, many local residents quickly took the opportunity to sell their existing stocks. The price per gram hit 420 dirhams, potentially yielding up to a 300% return for long-term investors. Now, as prices are slipping back below 390 dirhams, more people are returning to the market, making new investments in gold.

Gold Sales at the Peak: Profit and Strategy

Many residents in the UAE treat gold not just as jewelry but also as a strategic investment tool. The price fluctuations in recent months have revitalized this traditional form of investment. Following a global high of $3,500 per ounce and a subsequent correction, many are preparing to buy again—or have already made their move.

The motivation is not only the hope of profit: gold is one of the most liquid assets, easily converted to cash, especially during times of crisis. Furthermore, global geopolitical events, such as trade agreements between China and the USA, and the easing of tensions, have a significant impact on gold prices.

Ensuring Long-term Returns

Buying gold in the UAE is often a tradition spanning generations, especially among those seeking stability and value preservation. Some bought gold in the early 2000s for 50–60 dirhams per gram and have realized returns 7-8 times their investment with this year's sales.

Buyers' strategies typically rest on two main pillars:

Wealth preservation: gold serves as collateral, particularly during economic uncertainties.

Timed profit: when prices rise, owners sell part of their gold holdings, then repurchase when prices fall.

Returning to the Market after the Price Drop

By mid-May, the price of gold had fallen below the 390 dirhams level, which many investors saw as an ideal entry point. Many of those who had sold earlier are now reopening positions, financing new purchases with their profits. This cyclic process—buying at low prices, selling at the peak, then rebuying—is becoming an increasingly widespread investment practice in the UAE.

Jewelry Stores Fill Up Again

Local jewelry stores are already seeing increased traffic. The corrective price movements have attracted new buyers, particularly those who had been waiting. Retailers report that the uptick in activity is not only due to tourists but also local residents who find the current pricing favorable for long-term investments.

What to Expect in the Future?

Experts suggest that the price of gold could further decline, even below $3,000 per ounce, but medium-term prospects remain positive. Gold remains a security asset that still resists global inflationary and geopolitical pressures. Those who utilize the current correction well can also expect profits in the next wave of price increases.

(Source of the article: forex gold price data.)