Younger investors are increasingly turning to smaller and simpler gold jewellery pieces compared to older generations, gold jewellers observed. While gold prices have steadily been decreasing as geopolitical tensions arise, spot gold has spiked in the past few decades, making it more difficult to afford big statement pieces, according to some gold jewellers.
“Naturally, with the high price of the gold, the trends became more daintier, smaller, and lighter weight pieces to maintain the look with lower weight,” Mohammed Tamjid Abdullah, the founder of Jawhara Jewellery, told Khaleej Times. He was speaking on the sidelines of the 57th edition of Sharjah’s Watch & Jewellery Middle East Show on Wednesday.
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“At the same time, the Gen Zs or the new generations, they are more into smaller jewellery than big, bulky jewellery that the mothers and the grandmothers used to wear,” he added.
The jewellery shop owner mentioned that those who bought gold three years ago who have paid roughly $1,800 (Dh6,610) an ounce. “Today, it’s close to $4,500 (Dh16,526) an ounce, so you would have made three times your investments.”
Abdullah added, “looking at the track records of gold, the Gen Z’s definitely have realised that gold is a safe, I can’t say investment, but a safe parking for your excess cash.”
Demand for gold customisation
For Mohammad Rahma Alshamsi, the third-generation owner of his family’s jewellery business Rahma Alshamsi Jewellery, gold enthusiasts prefer unique jewellery that is tailored to their needs.
“The demand is more on the personal customisation, and even on the purchase of the ready-made jewels,” Alshamsi noted.
“We’ve even seen great gains in selling gold at a high price,” he added.
Other international vendors present at the event have also changing consumer behaviour amid the lingering geopolitical crisis, as prices continue to steadily decline. Gold is currently at one of its lowest points this year, trading at $4,101 as of Thursday, according to Goldprice.org.
Jewellers predict higher prices
Janesh Khanna, a gold jewellery owner from India, said that people have been trading in their existing gold assets rather than buying new pieces.
In India, business has been relatively slow in the jewellery sector, Khanna said. However, the international market, UAE included, has remained resilient. “People are reluctant in buying gold because they don’t know what is the future,” he said. “They are holding their purchases and just being prepared if the days are worse than this.”
Turkish gold jewellery owner Ercan Durur believes gold prices could rise again in the long term despite recent declines.
“According to me, for the future, it’s going to be more expensive than now,” he said, adding that many consumers had flocked to gold over the past year as prices climbed. However, he noted that some investors are now concerned about market volatility and potential losses following recent price drops.
