AZE.US
Gold prices in Azerbaijan have fallen noticeably in recent weeks, with sellers saying some items that recently cost more than 200 manats per gram are now being offered for around 165 manats (about $97).
Traders say the decline is especially visible in Turkish and Russian gold products.
“If we used to sell them for 185-195 manats (about $109-$115) per gram, now prices range between 160 and 175 manats (about $94-$103). Italian gold used to sell for 250-280 manats (about $147-$165), but now it is 220-250 manats (about $129-$147),” one seller said.
Market participants say prices have dropped sharply compared with the previous two months. Jewelry that was previously sold for 230 manats (about $135) per gram is now being offered for around 170 manats (about $100).
“Prices have fallen. The decline is about 30-35 manats (about $18-$21) per gram. Turkish gold that cost 235 manats (about $138) is now selling for 165 manats (about $97). That means a decline of about 70 manats (about $41) per gram,” another seller said.
The steepest drop, sellers say, has been seen in 585-grade gold, especially Turkish-made items. This category remains one of the most popular among local buyers.
Sellers say the current period is more favorable for buying gold than selling it.
“One item we used to sell for 6,200 manats (about $3,647) is now 5,270 manats (about $3,100). Another item that used to cost 7,500 manats (about $4,412) can now be bought for 5,700 manats (about $3,353). Turkish gold products that were sold for 3,000 manats (about $1,765) are now down to 2,400-2,500 manats (about $1,412-$1,471),” a trader said.
Sellers say the decline in gold prices is not directly linked to the start of Muharram. Gold is traded on the global market, they note, and religious calendars do not affect international prices.
Muharram, however, does affect diamond jewelry sales in Azerbaijan. Since weddings are traditionally not held during this period, demand for diamond sets falls.
“It has less impact on small gold items, but it affects diamond sets much more. Since there are no weddings, sales become weaker,” one seller said.
Despite the decline, buyers still say gold remains expensive. Sellers, meanwhile, expect prices to rise again in the coming months.
AZE.US