Diwali Gold Shopping: Indian Tourists in UAE Use Rupees to Handle High Prices
As gold prices reach all-time highs, Indian tourists in the UAE leverage the UPI system to buy gold ahead of Diwali and Dhanteras
Indian Travelers Pay Using Rupees Despite Increasing Gold Prices
Dubai: Indian Travelers Utilize Rupee Payments During Record-High Gold Prices: Indian travelers traveling to the United Arab Emirates for Diwali are using the rupee purchasing option to purchase gold as prices rise to all-time highs. This feature enables Indians living overseas to use their home bank accounts to make purchases as part of India’s Unified Payments Interface (UPI) program.
UPI’s Effect on Gold Buying
This development is especially relevant to the traditional spike in sales of gold and diamond jewelry during the festivals of Dhanteras tonight (October 29) and Diwali on October 31 and November 1.
There is a 6% price difference between gold sold in the UAE and India, with additional factors like making charges and foreign exchange rates influencing costs.
Abdul Salam K. P., Vice-Chairman of Malabar Gold & Diamonds, highlighted that the UPI option allows Indian shoppers to spend a predetermined amount, like ₹400,000, on gold without worrying about exchange rates. Additionally, they can receive VAT refunds directly to their Indian bank accounts.
Present Gold Rates and Offers
Gold prices have increased to $2,750 an ounce after a brief drop, getting closer to the record high of $2,758. With future increases anticipated, the current price of 22K gold in the United Arab Emirates is approximately Dh307.25 per gram. Promotions include free gold coins, subsidized making charges that go below 2%, and guaranteed buyback programs that let clients exchange their old jewelry for cash or brand-new items with no loss.
Trends to Expect for Diwali and Dhanteras
The overall demand is still high, according to Joy Alukkas, Chairman of Joy Alukkas, even though individual purchases may be lower because of high prices. It is still customary to purchase gold on Diwali, and merchants anticipate steady demand, particularly in areas like Kerala.
With options like RuPay, PhonePe, and Paytm available, Indian tourists can navigate high gold prices and enjoy a seamless festive shopping experience in Dubai.
