How Gold Jewellery Prices Work in the UAE

Unlike most things you buy, gold jewellery does not have one fixed price that stays the same for months. Its price is built from a few clear parts, and once you understand them you can compare pieces with confidence and spot a fair deal.

The basic formula

For plain gold jewellery, the price is calculated like this:

Price = (day's gold rate per gram for the karat × weight in grams) + making charge

Stones such as diamonds or gemstones, where a piece has them, are usually priced on top of this. Let us look at each part.

1. The day's gold rate

Gold is traded around the world, and its international price, quoted in US dollars per troy ounce (about 31.1 grams), moves every trading day. Because the UAE dirham is pegged to the US dollar, the local rate per gram follows that global price closely. Retail rates are published per karat, so each karat has its own rate, worked out from the 24K price according to its purity:

• 24K is the highest rate per gram.
• 22K and 21K are a little lower.
• 18K is lower again, because only 75% of the metal is pure gold.

Why prices change daily

The global gold price reacts to interest rates, inflation, the strength of the dollar, central bank buying and world events. When demand for gold as a safe asset rises, so does the rate, and when it eases the rate can fall. That is why the same chain can show a slightly different price on Monday and on Thursday, even though nothing about the chain has changed.

2. Weight

Weight is measured in grams and multiplies the rate, so it has the biggest effect on the final price. This is also why lighter pieces cost less: a 2-gram chain contains half the gold of a 4-gram chain in the same karat, so its gold value is half as much. Fine chains, small studs, slim rings and delicate bracelets are the easiest way to own real 18K gold on a smaller budget. Browse our gold jewellery under 1,000 AED to see what is possible.

3. Making charge

The making charge covers the craft: design, casting, assembly, polishing, setting and finishing. It may be quoted per gram or as a fixed amount per piece. A simple, machine-made chain has a modest making charge, while an intricate, hand-finished design costs more to make, even at the same weight.

Why two similar pieces can cost different amounts

• Different weight: two bracelets that look alike may differ by a gram or more.
• Different karat: 18K and 22K are priced from different rates per gram.
• Different workmanship: hollow, solid, plain or detailed designs carry different making charges.
• Stones: real gemstones add their own value.

Smart questions to ask before you buy

• What is the exact karat, and is the piece hallmarked?
• What is the weight in grams?
• How much of the price is the making charge?
• Will I receive an invoice and a certificate of authenticity?

How pricing works at Dubai Gold Jewellery

All our jewellery is hallmarked 18K gold (750). Each price is worked out from the day's gold rate per gram, the piece's weight and its making charge, and the weight is shown on every product page. The price you see is fixed when you check out, so it will not change after you place your order, even if the gold rate moves before delivery. You can pay in instalments with Tamara or choose cash on delivery. See the latest offers or browse the full collection.