Gold Sales During Eid Al Adha in UAE: No Price Reductions for Shoppers
Fresh Spin:
Hey there! Here's the scoop on the changing investment landscape in the UAE, where the younger crowd is swapping traditional gold for the digital gold rush.
Dubai Gold's Steep Climb:It's been a tough ride for gold dealers in Dubai this Eid Al Adha, with gold rates clinging above Dh370 since Monday. Even though it dipped slightly at the start of the week, it's not looking like gold is about to take a fall anytime soon. As of now, the Dubai gold rate hovers at Dh374.5 for 22K and Dh404.5 for 24K - and that hefty tag is making a dent in the gold-hungry crowd.
The Skinny on Gold Prices:
While the usual Eid discounts and promotions are doing their best to draw in shoppers, it's the hefty price tag that's putting a damper on demand. This year, many local shoppers may have already bought their gold bling when prices seemed friendlier, back when they were hovering around or just over Dh350. One retailer admitted, "At Dh360 and above, there's a lot of resistance."
Digging into 'Digi-Gold':
But here's the twist: Younger investors are throwing their hat in the ring for a piece of the digital gold pie. In the past few weeks, there's been a significant increase in gold purchases via commodity, stock, and crypto trading platforms - even when gold was hovering around Dh360-Dh370. Why? The belief is that gold is primed to push even higher, reaching $3,400-$3,500 an ounce consistently in the next few months - and possibly breaking beyond that.
The Rise of the Retail Investor:Feras Jalbout, founder and CEO of Baraka, has noticed a surge in interest from retail investors dabbling in gold. He explains, "With ongoing geopolitical developments and talk of inflation, some investors might be considering gold as a potential hedge."
And it's not just about physical gold. Investors are also exploring gold ETFs and digital gold products, enticed by their perceived accessibility and liquidity. According to Jalbout, "The reference to digital gold is telling. Younger investors don't want to hold onto physical gold - they want the benefits of gold in their portfolio, but in a digital format that's easy to trade and manage."
By investing in digital gold, these young investors can enjoy the same perks as stock market traders, buying and selling their stake as they see fit. And when economic times get tough, they'll have a stable asset to help them weather the storm.
The Perks of 'Digi-Gold':
Convenience, transparency, flexibility, security, and investment flexibility are all driving factors behind the growing popularity of digital gold. So if you're a younger investor in the UAE, it might be time to dip your toes in the digital gold pool. Stay ahead of the curve, my friend!
Sources: [1], [5]
- Despite the steep prices of physical gold discouraging some local shoppers, younger investors are expressing interest in the digital gold market, investing via commodity, stock, and crypto trading platforms.
- Feras Jalbout, founder and CEO of Baraka, has observed an increase in retail investors dabbling in digital gold as a potential hedge against ongoing geopolitical developments and inflation concerns.
- Digital gold products are attractive to younger investors due to their perceived accessibility, liquidity, and the ability to enjoy the same benefits as stock market traders, including convenience, transparency, flexibility, security, and investment flexibility.
