Billionaire Holding 16,000 Kilograms of Gold Predicts Value Increase

Gold’s Outlook Amid Global Uncertainty: Insights from Joy Alukkas

Photographer: Priyanka Parashar/Mint/Getty Images

Joy Alukkas, the Indian entrepreneur behind one of the world’s largest family-run jewelry empires, anticipates that gold prices will continue to climb in the coming years as ongoing geopolitical and economic instability drives demand for the precious metal.

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Recent US military actions against Iran and the subsequent drone attacks on Dubai, which targeted both the city’s airport and the iconic Burj Al Arab hotel, are just some examples of the risks fueling gold’s appeal.

“Whenever global tensions rise, people instinctively turn to gold as a safe haven, which can push prices up temporarily,” Alukkas explained during an interview in Dubai, where he was present during the recent incidents. “Looking ahead two to three years, unless there’s significant progress in the global landscape—especially regarding the US economy and international relations—I don’t expect a major downturn. There may be short-term declines, but the overall trend remains upward.”

His perspective reflects the sentiment among major gold holders, who have witnessed the metal’s price soar over 75% in the past year, surpassing $5,000 per ounce and reaching a record high in January. Alukkas, now 69, oversees nearly 200 stores across the UAE, India, the US, and other countries, collectively holding close to 16,000 kilograms of gold in the form of jewelry and bullion.

As gold prices rise, the value of his inventory—some of which has been accumulated over decades—also increases. This long-term approach helps cushion the impact of price swings of 10% to 20%. However, replenishing inventory now comes at a much steeper cost.

“Our working capital requirements go up, and every restock is more expensive,” noted Alukkas, whose net worth is estimated at $5.8 billion by the Bloomberg Billionaires Index.

Alukkas emphasized that a single regional event, such as the recent Middle East unrest, typically doesn’t cause a lasting surge in gold prices. Instead, sustained moves require broader catalysts like shifts in US interest rates, the strength of the dollar, inflation trends, and global investor sentiment.

The attacks in Dubai have also disrupted daily life, leading to school closures, remote work, and unease among the city’s affluent expatriate community.

Even before these events, Alukkas observed a growing interest in investment-grade gold bars and coins. He also noted a new pattern: customers are increasingly purchasing silver bars in 10-gram and 50-gram sizes for investment, whereas in the past, silver sales were mostly for ornamental items like anklets and hip chains.

Changing Consumer Habits and Business Expansion

Despite ongoing purchases for weddings, festivals, birthdays, and Father’s Day—especially among his predominantly Indian clientele—the recent surge in gold prices has made consumers more price-conscious, boosting demand for lighter, more affordable jewelry pieces.

India remains Joyalukkas Group’s largest market, followed by the UAE and the US.

From Humble Beginnings to Global Reach

The company’s roots trace back seventy years to a small shop in Kerala, India, founded by Alukkas’ father, Alukka Joseph Varghese. Joy Alukkas began helping with the family business at 16, and in the late 1980s, he spearheaded the company’s expansion abroad, opening its first overseas showroom in the UAE. Today, Joyalukkas Group operates 178 showrooms across 12 countries.

Joyalukkas entered the US market about ten years ago, focusing on cities with large South Asian communities. The group plans to grow from seven to eleven US stores by the end of next year and is also eyeing new locations in New Zealand and Canada.

His son, John Paul Alukkas, now manages the international division, while his two sons-in-law have joined the Indian operations.

Market Volatility and Long-Term Confidence

Gold prices have remained unpredictable as the US-Israeli conflict with Iran continues to affect the region.

“We’re confident that gold will continue its upward trajectory in the long term, so we don’t hedge our positions,” Alukkas stated.

Reporting assistance by Katharine Gemmell.

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