Why Dubai's Gold Is a Smart Investment

Dubai Gold Market: 100 Dirham Rise in a Year – Why Many Consider Their Jewelry the Best Investment?

Over the past year, the price of gold in the UAE, particularly in Dubai, has risen dramatically. The price of 22-karat gold per gram hovered between 279 and 290 dirhams last summer, but this year surpassed 380 dirhams. This represents an increase of nearly 100 dirhams in just 12 months – attracting not only the attention of investors but also increasing the prestige of buying gold jewelry among the public.

Spectacular Price Increase

According to data from the World Gold Council, the price of gold per ounce was around $1,928 in the third quarter of 2023, but continuous growth has since been observed. In the first quarter of 2024, the average price was already $2,069, followed by further increases quarter by quarter:

Q2 2024: $2,338.2 USD

Q3 2024: $2,474.3 USD

Q4 2024: $2,663.4 USD

Q1 2025: $2,859.6 USD

This growth is noticeably felt in the local gold market of the UAE as well. The price of 22-karat gold per gram at the beginning of the year was around 290 dirhams, but today it is well over 380, meaning that an average gold jewelry piece would now cost several thousand dirhams more than last year.

The Population Considers It the Best Decision

Many residents feel that purchasing their gold jewelry was a wise decision not only aesthetically but also financially. Gold is not just a precious metal – it is a secure, physical asset representing material value and emotional significance. Besides investment gold bars and coins, many continue choosing jewelry as they are not just valuable but wearable, giftable, and hold cultural significance.

In the UAE culture, gold plays a particularly important role: during marriages, family events, and as inheritance it is often passed down. This dual role – aesthetic and investment value – makes gold special in the region.

Not the Time to Sell Yet

Many believe that despite the increase, it is not yet worth parting with gold. Current trends suggest that due to international uncertainty, inflationary pressures, and demand for safe assets, gold prices may continue to rise. Thus, many residents choose to retain their existing jewelry, gold bars, or coins – and rather look at value growth in the long term.

What Do Industry Experts Say?

According to local gold traders, the 100 dirham annual price increase is "exceptional," and more people are seeking customized, light, modern jewelry solutions. For the new generation, jewelry is not just an investment but also a means of self-expression. Buyers today focus not only on price but also on origin, certification, and transparent pricing. Stores, in turn, emphasize honest communication, not just promotions and discounts.

Summary

Gold represents stable, inflation-resistant, and lasting value. The example of the past year shows that significant returns can be achieved within a few months – while an elegant piece of jewelry can bring joy in everyday life. Among UAE citizens, gold is becoming an increasingly popular investment form that simultaneously serves aesthetic and financial purposes. Those who bought last year are already profiting – and many think it's best to hold on to this shimmering asset for a while longer.

(The article is sourced based on data from the World Gold Council.)