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UAE Shoppers Opt for Gold ‘Lock-In’ Option Ahead of Dhanteras and Diwali

As they prepare for the forthcoming Dhanteras and Diwali celebrations, many gold and jewellery buyers in the UAE are opting for the "lock-in" option.

Many gold and jewelry shoppers in the UAE are choosing the “lock-in” option as they prepare for the upcoming Dhanteras and Diwali festivals, with some jewelers reporting a significant 200% increase compared to the previous year.

Attractive Precious Metal Prices:

Shoppers have been attracted by the recent drop in precious metal prices, which reached a seven-month low. However, prices have since rebounded as investors seek safe-haven commodities due to the Middle East conflict.

The Indian festivals of Dhanteras and Diwali are celebrated in the second week of November. 

Buying precious metals and jewelry during the Dhanteras festival is considered auspicious by Indians.

Understanding the ‘Lock-In’ Option:

When customers choose the ‘lock-in’ option, they pay a certain amount, typically 10% of the purchase price, in advance to lock in the gold rate. If the gold price increases, they can purchase at the locked rate. 

They can benefit from the lower rate if it falls below the locked rate. This assured benefit is driving the increasing popularity of the ‘lock-in’ option.

Jewelers’ Perspective:

Ramesh Kalyanaraman, executive director of Kalyan Jewellers, highlighted the annual tradition of customers looking forward to gold rate ‘lock-in’ festive offers, with increased demand during the pre-Diwali and pre-Dhanteras period.

John Paul Alukkas, managing director of Joyalukkas Group, confirmed a notable increase in shoppers choosing the ‘lock-in’ option, with a 200% growth compared to the previous year. 

Customers in the UAE are proactively leveraging favorable pricing conditions.

Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, noted the surge in customer interest in jewelry purchases, driven by the drop in gold prices and upcoming celebrations, festivals, and weddings. 

Despite price fluctuations, he emphasized the significant advantage of securing the lowest gold rate.

Get all the latest update on UAE Times Now

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