Why UAE residents are buying gold coins as prices soar

UAE shoppers are splitting their purchases between gold jewellery and bars and coins, reflecting consumers becoming more value-conscious in the country, jewellers in Dubai said

Industry executives said some UAE consumers are shifting from larger jewellery purchases to more light-weight ornaments.

Gold prices jumped more than Dh21 per gram on Thursday as the precious metal touched seven-week high on Strait of Hormuz reopening hopes.

The spot gold price was trading at $4,253 per ounce on Thursday morning. In Dubai, 24K and 22K gold prices were trading at Dh513.75 and Dh475.75 per gram, respectively.

John Paul Alukkas, CEO, Joyalukkas Jewellery, said consumers are purchasing gold more strategically.

“They are more financially aware and view coins and bars as a straightforward, cost-effective way to invest in gold without the added making charges or design premiums that come with crafted pieces. Many customers are now splitting their purchases as well, for example, a piece of jewellery for a wedding or special occasion, paired with a coin or bar for long-term savings. It's a balanced approach to gold ownership. So, while jewellery demand has softened in the short term, this reflects a shift in buying behaviour rather than a decline in overall interest in gold,” he added.

Another positive trend, according to Alukkas, is that customers are increasingly opting for certified, responsibly sourced gold and diamonds.

The World Gold Council's second-quarter 2026 data showed that the yellow jewellery demand fell 28 per cent while demand for bars and coins shot up 30 per cent year-on-year.

“The World Gold Council data reflects the broader market trend, but our retail experience has been relatively stronger. Jewellery demand has softened in some segments as consumers have become increasingly price-sensitive following the sharp rise in gold prices. At the same time, demand for gold coins and bars has grown significantly as many buyers are treating gold as a safe-haven investment and a hedge against economic uncertainty,” he added.

Anil Dhanak, managing director of Kanz jewels, said consumers are making more value-conscious purchases.

“Many customers are opting for lightweight and contemporary jewellery designs, while others are choosing to buy bullion first and postponing larger jewellery purchases. Buying behaviour has also become closely linked to price movements. When gold prices are rising, customers tend to purchase sooner, expecting further increases. However, when prices begin to decline, many adopt a wait-and-watch approach, anticipating that prices may fall further before they buy,” he said.

Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, said that some customers are adopting a more considered, wait-and-watch approach, particularly for heavier and more discretionary jewellery purchases due to constant fluctuations in gold prices.

“At the same time, the growing demand for gold coins and bars reflects an increasing preference for gold as an investment and a store of value. That said, jewellery continues to be the preferred choice for personal adornment, gifting and celebrating important life occasions.

“Investment-led purchases, with coins and gold bars becoming increasingly popular among first-time investors. We also notice a trend of customers exchanging existing jewellery for new ones. Millennials and Gen Z, increasingly prefer minimalist jewellery, stackable designs, everyday wear and jewellery that combines style, wearability and long-term value,” added Ahamed.

Chirag Vora, managing director, Bafleh Jewellers, said the gold market is clearly witnessing two different consumer mindsets.