The recent drop in gold prices in Dubai has sparked interest among Indian consumers looking to capitalize on the price differential between the two markets. As of June 22, international gold prices saw a significant decrease, reflecting directly in the souk markets of Dubai. For instance, 24K gold fell by Rs 5,119 per 100 grams, making it a lucrative option for buyers compared to rates in India.
Gold Prices in Dubai
In Dubai’s souk market, the price adjustments have been notable:
- 24K Gold: Prices plummeted by Rs 5,119, now priced at Rs 6,39,312 per 100 grams, with smaller units following proportionately.
- 22K Gold: Similarly, prices dropped by Rs 4,550 to Rs 5,92,103 per 100 grams, offering competitive rates even after conversion.
Gold Prices in Dirhams
Converting to local currency:
- 24K: Saw a decrease of 2.25 dirhams to 225 dirhams per 10 grams.
- 22K: Decreased by 2 dirhams to 200 dirhams per 10 grams, reflecting the global market trends.
Why Gold is Cheaper in Dubai
The affordability of gold in Dubai compared to India is primarily due to:
- Zero GST: Dubai imposes no GST on bullion and gold jewelry, unlike India’s 3% GST.
- Lower Manufacturing Costs: Dubai’s jewelry stores maintain reasonable manufacturing costs, contributing to a 5% to 7% price advantage over Indian markets.
Importing Gold to India from Dubai
Understanding the limits and regulations:
- Duty-Free Allowance: Indian travelers who have stayed in Dubai for over six months can bring up to 1 kg of gold, subject to duty payment.
- Customs Duty Rates:
- For male passengers: Duty-free allowance is 20 grams, up to Rs 50,000 in value. Excess incurs a 3% duty for 20 to 50 grams, 6% for 50 to 100 grams, and 10% for over 100 grams.
- For female passengers: The duty-free limit is higher at 40 grams, valued up to Rs 1 lakh. Customs duties include 3% for 40 to 100 grams, 6% for 100 to 200 grams, and 10% for over 200 grams.
- Children are allowed up to 40 grams of gold ornaments, with similar duty rates as females if limits are exceeded.
