Retailers in Dubai note an increase in sales of diamond jewelry in the lower and middle price segments, Gulf News reported.
Dubai buyers, known for their passion for gold jewelry, seem to be showing increasing interest in jewelry with diamonds, which may indicate that the aesthetic value of the product plays an important role in making a purchase decision, and not its investment attractiveness.
Previously, diamond jewelry in Dubai usually cost 10,000 dirhams ($ 2,700) or more. Now the cost is gradually reduced to 5 thousand dirhams ($ 1,350) in the lowest price range. Some retailers lower the bar even more - up to 2,5 thousand dirhams ($ 675) per unit of goods.
Obviously, the fixed growth in sales of diamond jewelry in the lower and middle price segments is explained by the changed tastes and expectations of buyers.
Despite the fact that mainly tourists are interested in such products, local buyers are more and more interested in diamond jewelry of the lower and middle price segments, in which the average check amount is from 5 to 30 thousand dirhams (from $ 1,350 to $ 8,100).
During the crisis of 2008-2009, prices for diamonds in Dubai declined. To date, however, prices for loose diamonds and jewelry have stabilized at the level at which they were before 2008. This is beneficial for retailers, who are growing sales of diamond jewelry, the net profit from which is higher than from the sale of gold products.