Over the past few years, Egypt’s gold market has witnessed noticeable shifts in trading trends.
While gold ownership remains deeply rooted in Egyptian culture, rising prices have increasingly challenged its preservation. According to the Gold Demand Trends report issued by the World Gold Council, demand for jewellery in Egypt declined from eight tons to 6.4 tons in the first quarter of 2025 compared to the same period in 2024, marking a 20 per cent drop in purchased quantities.
Much the same thing applies to gold bars and coins, with demand falling to about 4.7 tons in the first quarter of 2025, down from 5.2 tons in the first quarter of 2024, a decrease of 10 per cent.
With the decline in purchases, the market has witnessed active efforts to promote gold and stimulate sales. “To offset the continuous rise in prices and the inability of many buyers to afford the higher costs, manufacturers have introduced new designs featuring lighter-weight pieces with larger and more voluminous shapes,” said Robert Ramsis, the manager of a gold retail store in Cairo.
“These designs aim to combine aesthetic appeal with affordability, allowing consumers to enjoy harmoniously designed jewellery while paying less due to the reduced weight.”
Ramsis said that after years of stagnation, demand has revived thanks to advanced manufacturing techniques that enable lighter designs. Wedding bands that once weighed six grams are now available in styles starting at two, for example.
Necklaces, which were previously produced only in heavier weights, can now be found at just two grams or less. Even iconic designs that traditionally required six grams of gold are being replicated in versions as light as three grams or even a gram and a half.
Larger statement pieces, such as luxury-inspired Van Cleef or Tiffany designs, are now combined with lighter chains, where only the central portion reflects the heavier style while the rest remains more practical and affordable.
Ramsis said that the weight of the traditional shabka, the gold gift given by the groom to his bride, has also shifted significantly. Once a full set weighing between 30 and 50 grams, today most couples opt for just two wedding bands and a ring, and even those seeking a necklace tend to choose lighter pieces rarely exceeding 20 grams.
“In addition to jewellery, Egypt’s gold market has also witnessed the production of lighter-weight bars and coins to offset rising prices and encourage purchasing. Weights now start from a quarter gram and extend to bars ranging from one gram up to half a kg,” Ramsis said.
“This variety allows smaller units to be bought repeatedly or even given as gifts, making the market more flexible. Among the most popular options are five and 10-gram bars, while those seeking to save increase the weight according to their means. The higher the weight, the lower the manufacturing fee charged by retailers. For instance, the fee on a one-gram bar is about LE170, decreasing as the weight increases,” he added.
“Small gold bars have also provided young buyers with a practical way to save and preserve the value of their money. Many of my clients regularly purchase small bars from their monthly salaries. A young man who consistently buys half a gram or a gram of gold can eventually accumulate around 40 grams, which could later help him buy a car or an apartment, or exchange the gold for shabka.”
“For young women, these smaller units allow them to gradually gather enough gold to later trade it for a larger jewellery piece. These options have made gold more accessible for all segments of society,” Ramsis said.
“While gold jewellery buyers used to be predominantly older, in recent years younger consumers have increasingly entered the market, especially with the rise of lighter-weight designs at more affordable prices. This trend has been fueled by social media and influencers, who have turned gold into a fashionable statement among youth.”
“Today, young women purchase gold not only for its value or as a form of savings but also to follow fashion trends and emulate influencers. This approach, offering the same designs in lighter weights and at accessible prices, has attracted a new generation, with many in their early twenties shifting from silver or other accessories to investing in gold jewellery,” he added.
Selection: Although voluminous gold designs have encouraged many buyers due to their larger appearance and lighter weight, it is important to select and use these pieces according to their limited weight.
“If a larger piece weighs one gram or less, it is not suitable for daily wear. Such pieces should be worn for specific periods and stored carefully to prevent damage. Even so, if the piece breaks, the gold value remains intact, as jewellers will melt and recycle these pieces,” Ramsis said.
““For daily wear, it is better to choose a solid piece with an appropriate weight rather than a hollow piece with a light weight. For instance, a wedding band should weigh between three and five grams to ensure durability. Chains around 45 cm long should start at four grams to remain strong enough for continuous use.”
Generally, durability is linked to the gold’s carat. Pieces made in 18-carat gold are mixed with metals that increase strength, allowing for lighter weights, while 21-carat gold contains a higher proportion of pure gold, which is less resistant at low weights. A 21-carat bangle should weigh at least 12 grams, for example, while the same piece in 18 carats can suffice at nine grams. Rings in 18 carats should start from two to three grams to remain sturdy.
When it comes to choosing gold designs that can withstand daily use and ensure durability, Ramsis said that some locally made Egyptian designs are the most suitable, including Tennis bracelets and Tiffany. He added that some of these pieces feature slightly inflated designs, such as the Tiffany necklace, with weights ranging between 10 and 12 grams. Versions are also available at 20 and 30 grams, all in 18-carat gold, shaped to provide stability and strength.
He said that other pieces such as gourmet, Monaco Chain, and Van Cleef are part of popular collections and do not face issues with daily use. Properly cast and slightly inflated pieces can retain their strength, making them suitable for those who wish to invest in or wear gold without worrying about damaging the design, he added.
“The light gold designs originally emerged in Italy, which means they are imported and are subject to high manufacturing fees, usually ranging from LE500 to LE700 per gram. To meet market needs and offer more practical options, local manufacturers began producing Egyptian alternatives with slightly heavier weights and lower fees of around LE250, making them more durable for daily use,” Ramsis said.
“This shift has diversified market designs and introduced well-regarded jewellery as alternatives to Italian models.”
These market shifts have coincided with a notable rise in Egypt’s imports of non-monetary raw gold, which reached about $10.2 million in January 2025, compared to $4.7 million in January 2024, an increase of roughly $5.5 million, according to the Monthly Foreign Trade Data for January 2025 report produced by the Central Agency for Popular Mobilisation and Statistics (CAPMAS).
“Alongside the trend towards lighter gold, buyers aim to get the most value for their money, focusing on plain pieces without stones. Pieces adorned with stones were sometimes sold as if the stones’ weight counted towards the total gold, even though the stones are made of glass,” Ramsis said.
“When a customer wants to resell the piece, the jeweller takes only the gold without the stones, causing the buyer to lose part of the weight that was counted as gold at the time of purchase. Today, local companies have addressed this issue, allowing customers to buy decorative designs with stones while ensuring the piece is weighed and priced in full, including the stones, just as the customer bought it.”
“This option, however, is available only when purchasing from trusted companies. It is also essential to verify the manufacturer’s logo on decorated pieces to ensure authenticity and facilitate resale,” Ramsis said.
Plain gold: Another reason for the growing preference for plain gold is that pieces with stones or intricate designs require higher craftsmanship fees compared to simple pieces, bars, or coins.
“For example, craftsman’s fees for jewellery start at LE250 per gram, while fees for bars and coins are around LE60. In the past, traders would set craftsmanship fees and often exaggerate them. Today, with increased competition due to high-quality local manufacturing, fees have become more consistent among traders, and everyone competes to avoid overcharging in order to attract more buyers,” Ramsis said.
“Gold prices, once mostly accessible only to traders, are now publicly available to everyone through mobile phone applications, enabling customers to track gold prices in real time before making a purchase.”
The desire to avoid manufacturing fees has also driven many buyers to purchase second-hand gold online. According to Nora Suleiman, a marketer at a store selling pre-owned jewellery, high manufacturing costs on Italian products have prompted many to seek second-hand gold, especially since fees differ significantly between used and new pieces.
For example, the fee on used items may reach around LE120 per gram, while new pieces of the same design can exceed LE800 per gram. As a result, Italian designs are among the most sought-after in the second-hand market.
Suleiman advises buying second-hand gold only from reputable stores that offer their products online, rather than from social-media sellers. She also recommends choosing pieces with minimal stones whenever possible, verifying the gold’s carat with a qualified jeweller before purchase and ensuring that the item comes with an invoice from a reputable manufacturer.
Buyers can then verify the current gold price using any gold app before completing the purchase.
Similarly, Sherif Yehia, the owner of a gold store in Cairo, advises avoiding online purchases entirely, whether from individuals or stores without a physical address.
“Buying second-hand gold online carries major risks, primarily the lack of an official invoice confirming the weight and carat, which complicates reselling or verifying the piece’s authenticity. It is safer to buy from a known store with a fixed location, which allows customers to return if needed,” he commented.
“These stores are regulated, and they carefully inspect each piece before sale. The jewellers even test the carat using a special chemical on gold shavings to confirm authenticity, ensuring quality and giving buyers greater confidence compared to unverified online transactions.”
Another drawback of online gold purchases can be the misleading advertising promoted by some traders, even those with physical stores. Yehia explained that some shop owners advertise discounts or sales without craftsmanship fees, even though a portion of the price is actually paid to the producing workshop and cannot be waived.
Some individuals create videos presented as educational but actually false aiming to attract views online and claiming that traders calculate prices incorrectly and take thousands of pounds from buyers, he added. Others advertise unrealistic prices to lure customers, only to then inform them that the requested items have been sold and offer alternative pieces at higher prices.
As an additional solution to high gold prices, some vendors offer installment plans. Buying gold on installments has become an option, despite the challenges posed by rapid price fluctuations, Yehia said.
Several methods exist, including using a purchase card linked directly to the bank or installment programmes that allow customers to buy from a store and pay over varied periods, usually with interest. Some stores also offer simpler internal installment plans, such as paying one-third of the cost upfront and spreading the rest over two months without interest, while the store owner retains the gold until full payment.
“Once the sale is agreed upon, the store sets the price according to the live gold rate at the time of purchase, accepting any loss if prices rise afterwards. Some stores use this strategy to attract new customers even at a small loss, while others avoid it,” Yehia said.
Shabka and jewellery sets are among the most commonly purchased items on installments, as customers often prefer to split their payments. Demand for these plans varies according to each client’s preference. Some opt for immediate payment, while others use bank installments over long periods. Some also choose short-term store installments to avoid paying interest, he concluded.
* A version of this article appears in print in the 25 September, 2025 edition of Al-Ahram Weekly
Short link: