Dubai: Local gold markets are witnessing increasing competition among gold and jewellery retailers, with some stores offering gold bars without fees and others providing discounts on fees for bullion and jewellery.
Officials from gold and jewellery retail outlets said the offers are part of growing competition among stores and an attempt to capitalise on increased demand for bullion during the current period, coinciding with the decline in gold prices.
They said the offers are aimed at stimulating sales and increasing market share, benefiting both customers and traders.
Markets are also seeing strong demand for bullion across various categories and weights, supported by lower prices and expectations that gold prices could rise before the end of the year.
Gold prices resumed their decline at the end of last week, falling by between AED 2 and AED 3.50 per gram across various carats compared with the end of the previous week, according to price indicators announced in Dubai and Sharjah.
The price of 24-carat gold reached about AED 502 per gram, down AED 3.50 from the end of the previous week, while 22-carat gold stood at about AED 464.75, a decrease of AED 3.25.
The price of 21-carat gold reached AED 445.75 per gram, down AED 3, while 18-carat gold stood at about AED 382, a decrease of AED 2.75. The price of 14-carat gold reached about AED 298 per gram, down AED 2.
Gold and jewellery trader Ashwin Son said: “Local markets are witnessing increasing competition among gold and jewellery traders through offers to sell gold bars without fees, as shops seek to take advantage of the increased demand for them with the decline in the price of the yellow metal.”
He explained that gold bullion is exempt from value-added tax under the applicable conditions, while fees imposed by some stores relate to services such as packaging and issuing certificates. These fees range from about AED 100 to AED 500 per bar, depending on the store.
Gold and jewellery trader Mangesh Baleek said: “Local markets are witnessing a high demand for bullion of various categories and weights, supported by the decline in the price of the yellow metal during the recent period, after the increases it recorded in the previous week.”
He added that offers to sell bullion without fees reflect intensifying competition among retail outlets and their efforts to capitalise on increased demand to boost market share and stimulate sales.
Gold and jewellery trader Ricky Dahnak also noted the growing prevalence of discounts and fee waivers as retailers compete to stimulate sales.
He explained that some stores are offering gold bars without fees, while others are reducing fees on bullion and jewellery, with some offers bringing the charge down to about AED 50 per bar.
He said these offers are having a positive effect on the market by stimulating demand for different types of bullion, benefiting both customers and traders.
He also pointed to growing demand for bullion as prices decline compared with the previous week. Expectations among some traders that prices could rise more sharply before the end of the year are also encouraging purchases during the current period.
