Author：Jinshi Data APP

Joy Alukkas, an Indian tycoon who built one of the world's largest family-owned jewelers, believes that gold prices will continue to rise in the coming years against the backdrop of geopolitical and economic risks impacting the world.

The US strikes against Iran, and Iran's unexpected retaliatory drone attacks on Dubai and other locations, are just one example. "Whenever there's tension in the world, people naturally flock to gold for safety. That can drive up prices within days," said Arucas, owner of the Joyalukkas Group, in an interview in Dubai.

He was visiting Dubai when the recent attacks occurred. He said:“In the next two or three years, unless the world sees real improvement in the big picture, particularly around the U.S. economy and broader geopolitics, I don’t see a meaningful pullback. There may be downsides, but the overall direction still looks upward.”

These remarks highlight how some of the world's largest gold hoarders view recent volatility.Gold prices have surged more than 75% in a year, trading above $5,000 an ounce and hitting a record high in January. Arucas, 69, says he owns nearly 200 stores in the UAE, India, the US, and other locations.16,000 kilogramsThe gold reserves include gold bars and jewelry.

Arucas said that when gold prices rise, the value of his inventory also increases—some of which have been accumulated over decades. This long-term holding history provides resilience against fluctuations of 10% to 20%. But on the other hand, he must replenish his inventory at today's higher prices.

The entrepreneur stated, "With increased working capital, each restocking becomes more expensive."

According to the Bloomberg Billionaires Index, his wealth is $5.8 billion.

Admittedly, Arucas said that a single regional event alone usually won't push gold prices to entirely new levels.Speaking about the recent turmoil in the Middle East, he said that for gold prices to rise significantly and remain there, larger global triggers would be needed, such as changes in US interest rates, the dollar, inflation, and global investor confidence.

The attacks on Dubai have raised another issue: schools have closed, many people have been forced to work from home, and wealthy expatriates are feeling uneasy.

According to Arucas, demand for investment gold bars and coins had been growing even before that. Now, a new trend has emerged: customers are buying 10-gram and 50-gram silver bars as investments, whereas previously the Jo Arucas Group primarily sold decorative silver jewelry, including anklets and waist chains.

Although his customers—primarily Indians—have always bought jewelry for weddings, festivals, and even birthdays and Father's Day, the recent surge in gold prices has impacted consumer purchasing power, making lighter, heavier products more attractive.

India is the company's largest market, followed by the UAE and the United States.

Alukka's father, Alukka Joseph Varghese, opened a small shop in Kerala, India, seventy years ago. Alukka began assisting his father in the business at the age of 16. In the late 1980s, he led the company on an international expansion, opening its first overseas showroom in the UAE and building the Jo Alukkas Group into what it is today, with 178 showrooms in 12 countries.

The Joarukas Group entered the US market about a decade ago, targeting cities with a high concentration of customers in the Indian subcontinent. He plans to increase the number of stores from the current seven to eleven by the end of next year. He also plans to open stores in New Zealand and Canada. His son, John Paul Alukkas, is in charge of international business. His two sons-in-law have also started working in the Indian operations division.

Gold prices have been volatile recently as the US-Israel war against Iran has spread throughout the region. He said, "We believe that gold will move in one direction in the long run, and we do not trust hedging."