Diwali 2025: Dubai Shoppers Adapt as Gold Hits Record Highs
Diwali 2025: How Dubai Shoppers Keep Buying Gold Jewellery Despite Record Prices
Dubai’s Gold Souq is bustling once again, as the city gears up for Dhanteras and Diwali, marking the peak of the festive gold buying season. Shoppers are weaving through narrow lanes lined with bangles, coins, chains, and necklaces, carefully comparing designs that glitter under the shop lights.
What’s different this year is not the enthusiasm, but the approach. Even as gold prices soar to historic highs — 24K gold at Dh510.50 and 22K at Dh472.75 per gram — buyers are adapting to the market by changing what and how they purchase.
Rising Prices, Unwavering Demand
Gold prices globally have surged past $4,300 per ounce, making this Diwali the most expensive in history for buyers. Yet, demand remains resilient, driven by cultural significance and the emotional connection to gold.
“Yes, we’re already seeing a strong uptick in demand as Diwali and Dhanteras approach,” said Dr. Joy Alukkas, Chairman of Joyalukkas Group. “These occasions hold deep cultural importance, and gold continues to be the most cherished symbol of prosperity and celebration.”
Dubai’s shoppers are embracing a mindset of smarter spending while maintaining tradition, reflecting both practicality and lifestyle changes.
Lightweight Designs Take Centre Stage
One clear trend is the preference for lighter, more wearable jewellery. Instead of purchasing heavy, ornate sets, buyers are choosing pieces that are stylish, versatile, and budget-friendly.
“Gold continues to be valued as both a long-term investment and a traditional symbol,” said Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers. “While customers stick to budgets, they still invest in jewellery for key life events and festive occasions.”
Lighter designs do not replace tradition but complement it, catering to modern lifestyles and everyday wear. Retailers report high demand for Italian-inspired pieces weighing as little as half a gram, particularly among the younger generation.
“Lightweight is definitely for the next generation,” said Viraj Shah, General Manager of Bafleh Jewellery. “The pieces are practical, stylish, and still carry the emotional value people associate with gold.”
Smart Buying Strategies for Festive Shoppers
With prices high, shoppers are adjusting their approach to make the most of the festive season:
Opt for lighter, versatile pieces: 18K or 22K jewellery now comes in stylish, affordable designs.
Buy in instalments or pre-book: Many retailers offer fixed-rate schemes to lock in prices before further increases.
Focus on design and craftsmanship: Modern buyers value artistry over weight alone.
Choose certified pieces: Even small purchases should carry proper certification and hallmarking to ensure purity and resale value.
For gifting, many families prefer smaller pieces, coins, or simple pendants, allowing them to honor tradition without overstretching their budgets.
“The heavier pieces are definitely more difficult to sell,” said Arjun Dhanak, Director at Kanz Jewels. “Ahead of Diwali, people want gifts that are practical, so lightweight jewellery is popular.”
Luxury Market Remains Strong
While everyday buyers favor light and versatile pieces, the luxury end of the market thrives. Elaborate designs with diamonds and colored stones continue to attract high-end clients seeking statement pieces.
“Demand for luxurious and exclusive designs is strong,” said Nishith Shah, CEO of La Marquise Fine Jewellery. “Heavier creations with certified natural diamonds or coloured stones remain popular as both adornment and investment.”
Cultural Significance Overrides Price
Even with gold at record levels, the cultural pull of Diwali and Dhanteras keeps shoppers coming back. The festive spirit, coupled with smart buying strategies, ensures that gold continues to be both an investment and a celebration of tradition.
At the Deira Gold Souq, the atmosphere is unmistakably festive — prices may be high, but the desire to buy gold remains undiminished.
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