Gold retailers are updating designs and increasing trade-ins to attract customers amid record-high gold prices in 2025, which led to a decline in jewelry sales. Despite weaker sales, gold investments remain robust, with analysts predicting prices will stay high. The focus shifts toward investment opportunities even as retail demand struggles.
Gold Market Trends in Singapore
Gold sales in Singapore declined by 8% in volume during the third quarter of last year, as retail jewelry demand weakened. Despite this, investment in gold surged, with purchases of gold bars and coins increasing by 47%, driven by buyers seeking to preserve wealth amidst soaring prices. The rally was fueled by a 60% increase in gold prices last year, prompting consumers to favor gold as a store of value over jewelry.
Changing Consumer Preferences
Retailers report softer festive demand partly due to higher gold prices and increased price sensitivity among consumers. Many older shoppers are opting for lighter jewelry or selling existing pieces to profit from market conditions. To adapt, jewelers are introducing more affordable, lighter designs such as necklaces and bracelets under 3 grams, moving away from traditional, heavier gold chains.
Outlook for Gold Investment
Experts believe gold will remain a favored safe haven due to its historical resilience during market instability or crises. While prices are expected to stay high, growth may slow. Retailers now face the challenge of balancing affordability with appeal, as gold increasingly shifts from jewelry to a primary investment asset in a volatile economic landscape.
