December 31, 2025 | Dubai, UAE: It turns out, therefore, record high gold price in the UAE has reached a lunatic high, and these days the citizens of Dubai are actually trading in diamonds instead of yellow sparkle. Jewellery stores have observed a tremendous shift in the purchases of their clients as of late.
Rather than purchasing the old-fashioned gold stuff, many people are now shifting towards diamonds, particularly since the price of gold is more than the sky. This change proves how the record high gold Price has influenced buyer habits in Dubai like never before.
Price-Driven Consumer Shifts and Old Prices Boom
| Product Type | Consumer Preference | Reason |
| 14K Gold | Emerging demand | More affordable entry point |
| 18K Gold | Increased demand | Cost-effective with 75% gold content |
| 22K Gold | Traditional preference | Resale value and heritage appeal |
| Diamond Jewellery | Significant increase | Alternative to expensive gold |
In 2025, the price of gold reached a historic mark of $4,549 per ounce across the globe and more than 546 Dirhams a gram in the UAE. It was one of the largest gold rallies since the 70s due to geopolitical tension and people trying to invest in gold as interest rates decrease. In essence, much of economics is behind this. Such a surge clearly highlights a record-high gold Price in the global market.
The high gold price record has upset the purchase patterns in the jewellery industry in Dubai. According to sales executives, many shoppers are shifting to the use of diamonds due to the high prices of gold, which are becoming more trending. So the market is changing, and it is not altogether bad news for the diamond merchants. The record high gold Price continues to be the driving force behind this transition.
Surging Diamond Sales
There is an increase of 25-30 per cent in diamond sales on a year-to-year basis in retailers. That is basically counterbalancing the decline in the gold buys based on the gigantic price hike. According to Chirag Vora, MD of Bafleh Jewellers, diamonds are filling the gap that the sales of gold are making in the wholesale sector among all companies. Retailers say the record high gold Price is directly responsible for the diamond boom.
Aditya Singh, who is the head of the International Jewellery Business at Titan Company, says that big players have been compelled by the high cost of gold to focus more on diamonds. They are introducing new designs and hot deals, providing diamonds with greater exposure. Such brands as Tanishq are using the fame to sell diamonds as a viable substitute in a period when gold is so expensive. This is another major outcome of the record-high gold Price in 2025.
The impression is that real and lab-grown diamonds are being sold next to each other. According to Vora, they are both increasing at the same pace, and diamond-covered presents are much cooler among buyers than the traditional gold baubles, which are so expensive. He does not believe that lab-grown will overpower natural diamonds; both are catching up. With the record high gold Price, diamonds are stepping up as a more stylish investment.
Afzal Arakkal, the director of Arakkal Gold and Diamonds, has noticed a very obvious trend: those people who used to purchase gold are turning to diamonds due to the continual rise in the price of gold. Diamonds are a more expensive investment, and they are available in various styles, which serve as a status symbol. You will be finding a lot more pieces of diamond making appearances in good collections. A record high gold Price means diamonds win more cultural presence.
Cultural Changes and Gifting Patterns
In the UAE, gifts are traditionally given with gold, but this has been altered due to the high cost. According to Anuraag Sinha of Lili Jewellery, diamonds are gaining popularity as a present due to the fact that the jewels appear classy and prestigious. They are particularly required on special occasions and festivals such as Diwali.
Although gold is still an important cultural aspect, the price hikes are pushing people towards the direction of diamonds as a fashionable, relatively affordable option. All of this is linked closely to the record-high gold Price affecting consumer sentiment.
Chandu Siroya, who is the owner of Siroya Jewellers, explains that 2025 was not a good year in terms of sales volume; however, the volume of revenue remained strong due to record high gold price.
He suggests 2026 will be a new beginning: gold will remain at approximately 4,000 dollars per ounce, so the jewellery sector will remain with lighter-weight jewellery and add on new types of lab-created diamonds. Many believe the record-high gold Price will continue shaping trends into 2026.
Coupled with the demand for diamonds, more 18K and even recently introduced 14K gold jewellery are being demanded at the shops- these are lower priced than the normal, common 22K that most Asian customers are used to. Arakkal observes that 18K is of good quality and is durable as well as cheaper, which, at 75 per cent gold content with shiny appearance, is that sweet spot. This shift is another direct result of the record high gold Price.
Dubai Jewellery Group has recently introduced the 14K gold prices due to the expensive gold price that pushed 24K to over 500 Dirhams per gram. Although the traditional customer segment considers 22K to be superior in terms of resale and heritage, the 14K relocation will expand the product line to cater to younger customers who desire to wear their fashionable products at a lower cost. Retailers are adapting creatively to the record high gold Price.
Future Market Outlook for Record High Gold Price
Executives believe that the market share of diamonds will continue to increase so long as the gold price remains high. Most jewellers are selling classy pieces that are decorated with diamonds instead of chunky gold. It is the indication of market trends and consumer preference toward things that appear to be good in addition to being valuable. Unless the record high gold Price drops, diamond dominance will continue.
Concisely, the jewellery market in Dubai is changing with the unprecedented increase in the price of gold, and diamonds have come in as an alternative to luxury that is both useful and affordable. In short, the record high gold Price has reshaped the UAE jewellery scene in every possible way.
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