Fluctuating Jewellery Market

Customers around 180 nationalities, expatriates and tourists have Dubai as their first choice for Jewellery needs. The jewelries in Dubai have been imported from around 30 countries. Every variant of Gold is available from 18K to 24K, to satisfy customers from every region in the world. It becomes the main need for players in this market to absorb the global trends quickly and understanding the fluctuations.

Dubai slowly and strongly became the world’s largest diamond jewellery hub thanks to its strategic location. It is not due to the single person’s effort but by the Collective effort by jewelers across the United Arab Emirates (UAE), and by various government bodies and statutory agencies, have ensured that this business booms in the UAE, particularly in Dubai.

The fate of Dubai’s jewellery market took a dramatic change in the 1980s and 1990s.Gold Jewellery had been majestic at that time. It is hard to find any Diamond Jewellery in Dubai. Demand for Diamond Consumers has been raised only by the strategic marketing thanks to the effort of diamond trading companies. Jewellery retailers began to display and sell diamond jewellery like never before — and diamond jewellery offered them bigger margins than gold jewellery.

The feature that attracted the tourists most is that the jewellery in Dubai sells as much as 50-60 per cent cheaper than in their home countries Local jewelers responds quickly to varying patterns in the UAE’s tourist and expat populations. Russians, for example, can sample collections of 14ct and 18ct diamond-studded jewellery. Jewellery retail in the UAE keeps on expanding, and more and more retail growth is projected as more household investors turn to gold and jewellery.

Reasonable gold prices for the past several months brought the rising demand for Gold Jewellery in Dubai. Largest Indian Expat population has been the target for Jewellery Stores in Dubai because of their high appetite for Jewels. Buying happens on a large scale, especially during the Dubai Shopping Festival. Retailers expect substantial growth in the sector in coming years.

But it is not an easy thing. The fluctuating prices in the market have been a challenge always and prices have shown greater-than-normal fluctuation since 2011. We experience an all-time high of $1,884.4 per ounce and a low of $1,162 per ounce in 2014. Performance of Jewellery Sectors were getting affected by such volatility

Other factors like  regional wars, crude oil prices, currency valuations, and so on, all of affect this industry Besides this challenges include Higher inventory holding costs, more and more jewelers competing for a limited market, overly frequent jewellery exhibitions, ever-changing consumer preferences and sensibilities, the constant need for new designs, customer retention.