As gold breaks records, Dubai buyers trade size for security

EVEN AS PRICES SOAR, SHOPPERS KEEP FAITH IN METAL'S SAFE-HAVEN APPEAL

- BY NIVETHA DAYANAND

Gold has reached new highs 40 times this year. Conventional wisdom would suggest buyers might step back as prices soar. Yet a visit to Dubai's Gold Souk extension shows little sign of hesitation.

Retailers say the psychology of gold buyers has barely changed. Shoppers know they are getting less value for their money as prices rise, but that does not mean they are adjusting their budgets.

Same budget, smaller buys

"Despite the surge in gold prices, for us and industry wide, the real purchase power has changed for sure," said Arjun Dhanak, Director at Kanz.