UAE gold sellers advised to avoid five common mistakes before Diwali

Context and Market Data

Published on Monday 19 October 2026 at 06:00, the article notes that residents of the UAE who intend to exchange old jewellery for new pieces ahead of the approaching Diwali season are being urged to understand the purity, weight and fair value of their gold before approaching any buyer.

Dhanteras is set for Friday 6 November and Diwali for Sunday 8 November. Gold purchases are traditionally regarded as auspicious on these occasions, prompting jewellers across the Emirates to anticipate heavy footfall from the Indian community.

According to the latest figures from the Dubai Jewellery Group, the week‑closing prices were Dh502.0 per gram for 24‑karat gold, Dh464.75 for 22‑karat, Dh445.75 for 21‑karat and Dh328.0 for 18‑karat.

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Rishi Vaya, co‑founder of sellyourgold.ae, warned that many sellers enter transactions without adequate preparation and risk receiving less than the true worth of their gold.

Common Pitfalls When Selling Gold

The first mistake is not knowing the karat and weight of the item. Since gold’s value rests on purity and mass, sellers who cannot confirm whether their jewellery is 18K, 21K, 22K or 24K, or who are unsure of its weight, start at a disadvantage. Vaya advises checking any hallmark, estimating the weight and reviewing the current market rate before meeting a buyer.

The second mistake concerns misunderstanding how gem‑set pieces are valued. Sellers are normally compensated only for the gold content; the design and any stones are assessed separately, and making charges are not recovered when the jewellery is sold. As Vaya put it, “Sellers who expect their ornate or gem-set pieces to command a premium are often left disappointed,” Vaya said.

The third mistake is selling under pressure. Because gold is a liquid asset, there is no need to rush a transaction. Taking even twenty‑four hours to compare offers and select a reputable buyer can make a meaningful difference to the final amount received.

The fourth mistake is accepting the first offer presented. Even a small variation in deductions can amount to hundreds or thousands of dirhams when a substantial quantity of gold is involved. Obtaining two or three quotes enables sellers to compare valuations and potentially secure a better price.

The fifth mistake is confusing the retail rate shown in shops with the buying rate offered for old gold. The displayed price is the retail selling price, not the amount a buyer will pay for pre‑owned jewellery, so deductions apply. Understanding these deductions and choosing a buyer who clearly explains the calculation helps sellers make informed decisions.

Expert Advice on Valuation and Purchase

When asked whether the gold kept at home might be worth more than imagined, Vaya replied, “Almost certainly yes,” Vaya said.

He noted that gold is frequently bought in the UAE for weddings, festivals and family events, leading many households to accumulate jewellery over the years, often when prices were considerably lower, without revisiting its current value. Before selling, residents should check the prevailing gold rate and recent price movements, as even a slight shift can affect the proceeds from a sizable holding, and they should also determine the jewellery’s purity and approximate weight.

Vaya explained that his firm uses professional X‑ray fluorescence (XRF) machines to test purity, with the procedure carried out in front of the customer. He said, “You see every reading in real time with nothing happening behind closed doors,” he said, and added that the valuation reflects the gold’s worth at the prevailing international spot price before any deduction is applied. He further remarked, “No hidden charges, no additional fees, just one transparent number,” he said, adding that sellers can decline the offer without cost if they are unhappy with it.

For fair pricing, Vaya advised sellers to consult the live Dubai gold rate corresponding to their jewellery’s karat before approaching a buyer. A transparent buyer should explain the valuation and disclose any deduction openly. He cautioned, “If a buyer cannot explain their calculation in plain terms or is layering on multiple charges and fees, walk away,” he said.

Regarding purchases, Vaya described gold as “a long‑term bet, not a trading instrument”, arguing that it is better suited to preserving value over the long term than to short‑term trading. He pointed out that gold bars generally carry lower premiums than jewellery because they lack the same making charges, making them more economical for pure investment. Jewellery, while bearing additional craftsmanship costs, can be worn; over an extended holding period, rising gold prices may offset some of the higher initial outlay, although returns are not guaranteed. He concluded, “If the goal is purely financial return, gold bars are the smarter choice. If the goal is a combination of enjoyment and long-term value preservation, jewellery can serve both purposes well,” he said.