In recent months, the price of gold approaching record levels in world markets has not gone unnoticed in the jewelry and precious metals market in Azerbaijan. Especially on the eve of Ramadan and the summer season, with the increase in wedding preparations, the demand for gold and silver has risen, which has led to a noticeable increase in prices.
Rovshan Amircanov, Deputy Chairman of the Azerbaijan Jewelers Association, economist, clarified to Modern.az about whether gold and silver prices will increase in our country.
The reason for the increase in gold and silver prices in Azerbaijan in recent days:
It is appropriate to link the current price increase mainly with the processes observed in world markets. In recent days, an increase in the price of gold and silver has been recorded in international markets. On May 7, an ounce of gold rose to 4,738 US dollars, and an ounce of silver to 79 US dollars. The weakening of the US dollar, expectations regarding interest rates, as well as global economic and geopolitical uncertainties are among the main factors influencing this increase. The increase in demand in the domestic market on the eve of the holiday may have some additional impact on retail prices. However, the main reason for the overall price increase is not an artificial price increase, but is related to international market factors.
These factors most affect the price of gold and silver in the Azerbaijani market:
The formation of gold and silver prices in the local market is primarily affected by the value per ounce of these metals on international exchanges. In addition, exchange rate changes, import costs, processing and production costs, additional costs arising in the retail chain, as well as the design, weight, fineness and processing level of the jewelry product are among the factors affecting the final price. When there is a price increase in the world market, this process manifests itself in the Azerbaijani market after a certain period. However, price changes in the local market do not always occur at the same speed and in the same volume as international exchange prices.
Is the price increase expected to continue during the summer season and wedding season?
Demand for jewelry traditionally increases during the summer season and wedding period. In this regard, it is possible that interest in gold and silver products in the domestic market will remain high. In addition, the main direction of prices will again depend on the trends formed in international markets. It is not excluded that price volatility will continue in the short term. In the medium-term perspective, geopolitical risks, central banks' interest in gold and inflation expectations are considered as key factors supporting gold prices.
In the current situation, is it profitable for citizens to buy gold, or is it more appropriate to wait?
If gold is purchased as a jewelry item for personal use, gift or wedding purposes, postponing the purchase decision solely on the expectation of a short-term price drop may not always yield an appropriate result. However, it is important for individuals planning to buy gold for investment purposes to act more cautiously and consider the possibility of sharp price changes. In this case, instead of making a large one-time purchase, a phased purchase strategy can be considered a more rational approach.
Buyers are advised to pay attention not only to the price when choosing a product, but also to the fineness, weight, quality of workmanship, information about the manufacturer and seller, as well as the presence of a state assay mark on it. In addition, the provision of a sales receipt and relevant documents for the product are among the main points to be considered when purchasing. When purchasing precious stones - diamonds, sapphires, rubies, emeralds and alexandrites - special attention is recommended to the existence of a certificate confirming their quality indicators, origin and authenticity.
