AZE.US
Gold sellers in Baku say demand has weakened in recent months, even after prices for some gold products declined.
Vesti Baku reports that the local gold market remains sluggish, with sellers pointing to weaker purchasing power as the main reason. Although global price fluctuations have pushed some local prices down, buyers have not returned to the market at previous levels.
The most in-demand product remains 585-carat gold, commonly known as Turkish gold. It is currently sold in stores for about 170-175 manats ($100–$103) per gram. Purchase prices, or the amount sellers pay when buying gold from customers, range from 130 to 145 manats ($76-$85) per gram.
Italian gold is more expensive, with prices in shops ranging from 230 to 270 manats ($135–$159) per gram. Some sellers say Arab-made gold products are offered at around 300 manats ($176) per gram.
Sellers say demand for new jewelry has fallen, while interest in second-hand gold has increased. The reason is straightforward: second-hand items are cheaper, and many buyers are now looking first at price rather than design.
Some sellers said scrap gold prices have also dropped. According to market participants, prices that previously reached around 168-175 manats ($99–$103) per gram are now closer to 130-135 manats ($76–$79), depending on the item and quality.
Economists link the situation to sharp movements in the global gold market. After a strong rise over the past year, gold prices reached high psychological levels before retreating in recent months.
One economist said gold prices had risen by as much as 78-79% over a one-year period at certain points. After reaching about $5,500 per ounce, prices later moved back into the $4,500-$4,700 range, according to the assessment cited in the report.
That decline may eventually support some recovery in demand. For now, however, sellers say the market remains cautious.
The problem is not only the price of gold. It is also the purchasing power of consumers. When household budgets are under pressure, even a cheaper gold item can still remain out of reach.
The gap between retail and buyback prices also remains a sensitive issue. People selling their own jewelry often receive significantly less than the price they would pay for a similar product in a store.
That is one reason the second-hand gold market looks more active than the market for new jewelry. But even there, sellers are not describing a real boom.
Gold remains a valuable asset, but for many ordinary buyers in Azerbaijan, jewelry is increasingly becoming a purchase to postpone rather than a gift to buy immediately.
AZE.US