AZE.US
The start of Muharram in Azerbaijan has led to a seasonal decline in weddings and engagement ceremonies, reducing demand across the country’s jewelry market.
Rovshan Amirjanov, deputy chairman of the Azerbaijan Jewelers Association, said demand falls most sharply for expensive wedding sets and heavier gold jewelry.
During this period, buyers tend to choose lighter, more affordable items that are easier to resell. Slower turnover may also push jewelry stores to offer discounts, launch promotions or reduce their profit margins.
However, the seasonal drop in local demand has little impact on the underlying price of gold.
Amirjanov said gold prices are driven mainly by international market rates, the value of the U.S. dollar, interest rates, inflation expectations, geopolitical risks and demand from investors and central banks.
Retail prices in Azerbaijan are also affected by the purity and weight of the gold, production and processing costs, design, craftsmanship, import and logistics expenses, and the seller’s markup.
As a result, the main change during Muharram is seen in sales volumes and store turnover rather than in gold prices themselves. Some retailers may offer discounts or lower their margins, but the broader price trend remains tied to developments in the global gold market.
AZE.US