Gold Price Myth Busted: Buying in Dubai No Longer Cheaper Than India, Says Motilal Oswal Executive

Image Source: Business Today

Kishore Narne, Executive Director at Motilal Oswal, clarified that buying gold in Dubai is no longer significantly cheaper than in India. Thanks to reduced taxes and import duties in India, the price gap has narrowed. The long-held belief that Dubai offers better gold deals is now largely outdated.

Gold Price Parity: Why Dubai Is No Longer the Go-To for Cheaper Gold

For decades, Indian travelers have flocked to Dubai with the belief that gold is cheaper in the UAE. However, in a recent podcast appearance with finance influencer Sharan Hegde, Kishore Narne, Executive Director at Motilal Oswal, debunked this myth, stating that there’s no longer a significant price advantage in buying gold from Dubai compared to India.

Key Highlights from the Expert’s Insight:

Tax Reforms in India

India’s total tax on gold has dropped from 15.5% to around 5–5.5%, making domestic purchases more competitive.

This includes reductions in customs duty and GST, which previously inflated gold prices.

Dubai’s Historical Advantage Diminished

Dubai was once favored due to zero import duty and minimal VAT, making gold significantly cheaper.

However, global gold prices have surged, and Dubai’s pricing now aligns closely with international benchmarks.

Hidden Costs and Travel Considerations

Buying gold abroad involves currency conversion fees, travel expenses, and customs regulations upon return to India.

These factors often negate any minor price differences.

Purity and Certification Standards

India now offers BIS-hallmarked gold, ensuring standardized purity and consumer protection.

Dubai’s gold is also high quality, but the lack of price gap makes local purchases more practical.

Consumer Behavior Shift

With improved transparency and digital gold options in India, consumers are increasingly choosing local jewelers and fintech platforms.

The convenience of buying gold in India outweighs the marginal benefits of overseas purchases.

Expert Verdict

Narne concluded: “There is no significant difference anymore,” urging buyers to reconsider old assumptions and focus on value, trust, and convenience.

This revelation is timely, especially as festive and wedding seasons drive gold demand. Buyers can now shop confidently in India without fearing inflated prices.

Sources: Hindustan Times, Inshorts

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