In a recent discussion, the Dubai Gold and Jewelry Group confirmed that now is a strategically sound time to invest in gold, whether for savings or long-term investment—provided it’s done correctly.

Buy Gold, But with a Plan

According to the group, the key to successful gold investment lies in buying from surplus income—not borrowed money. The chairman of the group, Tawhid Abdullah, explained that gold has seen consistent price increases in global markets, boosting investor confidence and leading to a noticeable rise in demand for gold bars across various sizes.

He emphasized that the best approach involves buying gold bullion instead of ornamental pieces, and holding onto it for the long haul to capitalize on potential future price gains. For those who still prefer jewelry, the group recommends choosing 22-karat pieces without gemstones, to retain better resale value.

Diamonds Are Not an Investment

One of the major misconceptions the group aims to correct is the idea that diamonds are a good investment. Abdullah stressed that diamonds are best considered decorative items, not financial assets, due to their inconsistent resale value and lack of a standardized pricing mechanism like gold.

Even when it comes to other precious metals like silver, the group advises caution. While silver can be part of a diversified investment strategy, it doesn’t offer the same price momentum or stability as gold.

Global Outlook: More Gains Expected

Looking ahead, the group expects gold prices to continue rising through the end of 2025, with international forecasts placing the price of gold per ounce between $3,700 and $4,000. This bullish outlook is supported by global economic conditions and increasing investor demand.

In Dubai specifically, tourism is also driving up sales, as visitors are drawn to the city’s competitive pricing and wide selection of high-quality gold products.

Local Gold Manufacturing on the Rise

Beyond retail trends, the group is actively working to expand local gold manufacturing, which has seen steady annual growth of around 5%. The UAE now produces approximately 220 tons of gold jewelry per year, a significant jump from previous figures of 150–180 tons.

Locally made jewelry now accounts for 30% of gold sold within the UAE, and much of it is also exported to international markets. The diversity of styles produced locally helps cater to the varied tastes of the country’s multicultural population.

Compared to other regional players, Saudi Arabia leads the Arab world in gold production at 250 tons per year, while Turkey dominates the Middle East with 280 tons. However, the UAE is rapidly catching up, with ambitious plans to boost both local demand and exports through targeted investments and strategic partnerships.

If you’re considering adding gold to your investment portfolio, this may be one of the most opportune moments—as long as you approach it strategically. Stick to bullion, avoid leveraging credit, and think long-term. And remember: when it comes to jewelry, diamonds may sparkle, but gold builds wealth.