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tnasparkles

Has Anyone Bought Jewellry In Dubai?

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My husband and I are planning a big overseas trip and were thinking about stopping off in Dubai to have a diamond ring made. Has anyone had any experience with buying jewellry there?

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There are lots of jewelers there and some are highly skilled but that's the case pretty much anywhere. If you're not a resident of Dubai, why would you want to do high ticket shopping there?


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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I was in Maui about six weeks ago. Being in the business, when we were walking past jewelry stores in Lahaina, I finally couldn't help myself and walked into one. After the first minute of our conversation I knew I would never do business with these people even if I needed a jeweler.

 

Keep in mind that jewelers in the U.S. are all subject to scrutiny by the U.S. government in one way or another - FinCEN of the Department of the Treasury, the FBI, local law enforcement and so forth. Dubai has its own regulations too, but going after a company there for fraud is probably not an easy task for a U.S. citizen. So if possible, I recommend sticking to a jeweler somewhere in the U.S. But either way I recommend doing your due diligence as it is way to easy for the average buyer to be tricked or misled in our industry, even here in the U.S.

 

Good luck!


www.encoredt.com

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I was in Maui about six weeks ago. Being in the business, when we were walking past jewelry stores in Lahaina, I finally couldn't help myself and walked into one. After the first minute of our conversation I knew I would never do business with these people even if I needed a jeweler.

Encore. I think you're being overly harsh. The reason people generally shop at jewelers in Maui and other tourist destinations is either because they live there and want to shop with their neighbors or because they are looking for a souvenier of a visit to a fabulous place. These are fine reasons. It's probably not the best place to look for a 'bargain' but you never know, and to blanketly disparage all jewelers in a neighborhood based on one conversation with one of them is not being fair, ESPECIALLY since you're in the business.


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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Tnasparkles: presumably you are thinking of Dubai because you think you can get a better deal there than at home.

 

Dubai gets any price advantage from two sources: low taxes, and cheap labour.

 

Materials (metals and gems) are pretty much the same price anywhere, and in fact Dubai - like the other Gulf emirates - has the disadvantage of selling only (or mainly) sealed diamonds.

 

Low taxes can help a little (depending on where the item has been manufactured), but the main whack you would get on your return home (assuming you declare the import), since it will be taxed as if it had been bought "in state".

 

Cheap labour is only an advantage if you can 1) check/trust the quality of it, and have the time to get it done while you are there, or 2) find exactly what you want "ready made" (and it is of a comparable quality to what you can find at home - this is not as trivial as it may sound). It may work out, but for the vast majority of people it doesn't, and it raises problems in terms of alterations, repairs and guarantees.

 

So, in all, unless you have somewhere you know, that you trust and maybe have used in the past, I don't think you'll get a significantly better deal than you would by researching carefully the US or European markets. Emotionally, it may still be a good purchase and a fantastic souvenir of a lovely trip.


Davide - Specialised Consumer Information and Assistance,
Diamonds by Lauren (http://www.diamondsbylauren.com)
davide@diamondsbylauren.com

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European markets vary a bit from one to the next and I don't claim to understand them. Eurotaxes are, in general, pretty high but the import taxes to bring diamonds into the United States is zero and I think the EU is pretty low. Sales/use and VAT taxes apply, of course, and any US or European merchant is going to be paying income taxes which will be built into the price, but something tells me that merchants in Dubai have to deal with this as well. As Davide points out, use taxes are collected at the border when you gome home with an overseas purchase so there's not really a tax advantage for US residents to be shopping overseas. This applies for diamonds and most other things as well. Small quantities of liquor and cigarettes are an exception and these are staples at the 'duty free' shops but most of the goods sold in these markets are on a fairly level playing field. Interestingly, this has become an advantage over the US/Mexico border for sales of gasoline. Fill up your tank in Mexico and you aren't asked to declare it when you drive home to San Deigo or Laredo. Presumably if you filled up a tanker truck you would go through a different line at the border but passenger vehicles get a free pass.

Edited by denverappraiser

Neil Beaty

GG(GIA) ICGA(AGS) NAJA

 

There's never a crowd when you go that extra mile.

Professional Appraisals in Denver

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FWIW - EU duty on loose stones: 0%; EU duty on mounted jewellery 2.5%. The real sting in the tail is VAT at between 19 and 25% on value including duty and shipping costs (if declared).

 

Swiss duty on loose stones 8 CHF/Kg (gross weight, but still practically zero), on mounted jewellery 38 CHF/Kg; all +VAT at 8%, so comparable with US rates unless you are importing literally tons of stuff.


Davide - Specialised Consumer Information and Assistance,
Diamonds by Lauren (http://www.diamondsbylauren.com)
davide@diamondsbylauren.com

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I was in Maui about six weeks ago. Being in the business, when we were walking past jewelry stores in Lahaina, I finally couldn't help myself and walked into one. After the first minute of our conversation I knew I would never do business with these people even if I needed a jeweler.

Encore. I think you're being overly harsh. The reason people generally shop at jewelers in Maui and other tourist destinations is either because they live there and want to shop with their neighbors or because they are looking for a souvenier of a visit to a fabulous place. These are fine reasons. It's probably not the best place to look for a 'bargain' but you never know, and to blanketly disparage all jewelers in a neighborhood based on one conversation with one of them is not being fair, ESPECIALLY since you're in the business.

 

I was referring to the specific jewelry store I walked into. Given the fact that Maui is U.S. territory, I would purchase in Maui over Dubai any day, just not from that store.


www.encoredt.com

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If you buy Diamond from dubai probably you must be thinking that you will get it for cheap. In fact diamonds are priced less due to Tax exemption and other low cost labor. Besides this the price which you have to pay at custom entry to any country airport eventually increases the price of diamond. Its advisable to buy diamonds from online companies which are very popular in US.


Gemologist (Graduate)

www.b2cjewels.com

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