Dubai, where gold usually pours in rivers and glitters at every turn, has faced tough times. Prices for this metal skyrocketed to $2,200 per ounce, according to Bloomberg. Against this backdrop, even the most hardened fans of luxury doubted their investment decisions.
Under the current conditions, Dubai jewelers should have benefited from the situation, as more expensive gold means more profit. However, they suddenly found themselves in a tricky situation as buyers’ interest in gold is falling. The fact is that people are wondering why gold has become so expensive. Now, sellers can only dream of times when prices will become reasonable again.
The situation in bullion sales is even more dramatic. As it turned out, this category of goods, previously considered the top of the aristocracy and a reliable investment, suddenly turned into a kind of hot potato. Sales have fallen by half, despite various marketing campaigns.
Nevertheless, tourists, who are eternal optimists and lovers of exotica, are still happily buying jewelry as if nothing has changed. Mohammad Tariq, a sales manager at Kanz Jewels, confirms that tourists are still excited about Dubai. For them, the price is nothing more than numbers.
Meanwhile, the locals have started melting old gold, hoping to make it look more attractive.
Summing up, gold sellers noted with wisdom and a pinch of irony that gold would always be something worth fighting for. While Dubai adapts to the new market realities, one thing remains the same: gold will always find a fan, even if it has to wait a little longer for more favorable times.
