SINGAPORE, Jan 6 — Gold retailers in Singapore are revamping their designs and accepting more trade-ins as they try to win back customers after 2025 saw one of the weakest years for jewellery sales in recent times.
The decline in jewellery demand was offset by a surge in investment-grade gold purchases, with gold bars and coins jumping 47 per cent over the same period, Singapore-based news outlet CNA reported today.
Sales of gold jewellery by volume fell 8 per cent year-on-year in the third quarter, CNA reported, citing the World Gold Council.
In contrast, gold prices have been rallying and gained more than 60 per cent last year, driving buyers to see bullion as a safer store of value amid global uncertainty.
Spot prices are now trading at least around US$4,330 (RM17,568.64) an ounce, nearly double the US$2,600 (RM10,524) an ounce seen at the start of 2025.
CNA reported that in Singapore, retailers are responding by offering lighter and hollow designs to make jewellery more affordable while maintaining sales value.
Ho Nai Chuen, president of the Singapore Jewellers Association told the news portal that GST exemptions on investment-grade gold bars have influenced consumers to favour bullion over jewellery.
Some customers, including retirees and elderly buyers, are selling or trading in old jewellery to capitalise on higher prices.
Analysts say gold remains attractive for investors due to its low correlation with other asset classes, acting as a safe haven during market instability or unforeseen events.
Retailers and industry insiders expect demand for budget-friendly jewellery and gold as an investment to remain strong heading into the Chinese New Year in February and beyond.