Record-high gold prices are impacting jewelry markets in Asia and Middle East

The increase in gold prices is creating problems for jewelers in Asia and the Middle East. Due to the high prices, customers are rushing to turn in old jewelry and coins. According to experts, this may reduce imports and slow down price growth. The price first exceeded $3,000 per ounce on March 14, 2025, having risen by more than 15% since the beginning of the year amid political and financial uncertainty.

In India, the reduction of import duties in July 2024 led to a 32% increase in local prices, resulting in a slump in jewelry sales even during the height of the wedding season. Stores are experiencing a decline in the number of customers. At the same time, customers are replacing old jewelry with new pieces to cut costs.

Sales in the Middle East are also declining. About 60% of gold demand in the UAE is for lightweight jewelry. In China, buyers are opting for bullion and avoiding jewelry markups. In Singapore, while buyers are selling old jewelry, the demand for gold-plated silver is rising.

Analysts predict gloomy prospects for the jewelry market. However, they expect investment demand for bullion to continue. This information was reported by Reuters.