UAE gold retailers offer biggest discounts in history for 'Akshaya Trithiya' - will shoppers return?

Dubai: UAE’s gold and jewellery retailers are lining up the biggest discounts ever to get some buying activity for this Friday’s ‘Akshaya Trithiya’, the Indian festival that’s considered ideal for gold purchases. This is also one of the key sales phases for the UAE’s gold retail sector, apart from the campaigns for DSF and Diwali, the other prominent Indian festival.

“Offers are on with retailers removing making charges on some collections, or selling them “at cost”, which essentially means a 20 per cent discount,” said Chandu Siroya of Siroya Jewellers, one of the biggest names in local gold wholesale space. “Typical promotions are in the 10 per cent off on making charges – but these are not normal times.”

Siroya’s on the ball when taking about normalcy… or how far removed the present situation is from anything the UAE’s gold trade has encountered. Gold prices are back above $1,830 an ounce levels, and currently at $1,836. In March, for a brief while, gold had dropped down to $1,695, giving shoppers the chance to make a few buys.

These promotions are run by individual retailers in the Dubai Gold Souq – there’s no common promotion mounted by the jewellery grouping

Chandu Siroya of Siroya Jewellers and board member at Dubai Gold & Jewellery Group

No festive spirit

Then there’s the other factor – India’s second wave of COVID-19 outbreak and the deep impact it has had on Indians’ psyche wherever they are. This has visibly affected any thoughts being given to Akshaya Trithiya celebrations, which falls on Friday (May 14) this year.

Even with these handicaps, Siroya and others in the jewellery business are hoping that some increased sales will materialise between now and Friday. The discounts are real, and it also applies to diamond and Polki jewellery where prices have been slashed up to 60 per cent.

“There are two reasons why retailers hope there will be some activity – gold prices are likely to rise further,” said Siroya. “That’s always an incentive for many shoppers to buy.

“The discounts also help retailers to clear existing stock and bring in fresh collections. The biggest discounts should help achieve our goals.”

The Siroya Jewellers' outlet in Dubai... Shoppers could be swayed by the fact that gold prices seem intent on going up further. Image Credit: Supplied
What Malabar and Joyalukkas have on for Akshaya Trithiya
Malabar Gold & Diamonds' promotions extend to: * A free gold coin on gold jewellery worth Dh3,000; * Free one gram gold coin on diamond jewellery worth Dh4,000; and * Free half-gram gold coin on diamond jewellery worth Dh2,500. For Joyalukkas, it's about * A 200 milligram 22K gold coin for gold jewelllery Worth Dh3,000; * A 1 gram gold coin on diamond, Polki and pearl jewellery worth Dh3,000. Pay 10% in advance for guaranteed gold rate protection.


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