The price of gold is rising in the countries of the world. This process is associated with uncertainty in the world economy, disagreement of investors. Experts think that this price increase will be reflected in the Azerbaijani gold market.
Recently, the price of gold in the world market has reached its maximum. This price increase is also felt in neighboring Turkey. Currently, the wedding season has started in Azerbaijan. This means further increase in the demand for gold. What direction will the price of gold change in the Azerbaijani market against the background of the increase in the price and demand in the world?
There is a difference of 1-2 dollars between the world and the Azerbaijani market
Sellers say that the demand in the Azerbaijani gold market has been weak recently: “1 gram of the new 585-carat product costs 46-50 dollars (70-85 manats). 750-carat gold is offered to customers for $62-63 (105-107 manats), and 585-carat Turkish gold for $48.5-50 (73-85 manats). This price includes both shipping and customs duty. The price of the product in local production shops is 46 dollars for 1 gram. Trade in the bazaar was weak until Ramadan. There is some revival after the holiday. The possibility of a fall in the price of gold is not yet visible. But the price of gold is such that you cannot know what will happen tomorrow. Prices are regulated by the world market. There is a difference of 1-2 dollars between the world and the Azerbaijani market.”
Prices are adjusted twice a week
Jewelers say that prices do not increase much because gold is widely used in our country: “The increase in price in the world market has a great impact on the market of our country. When gold enters the country, its customs costs, tax, land tax, etc. factors affect the price increase. Twice a week, the price is determined based on the London and US stock exchanges. As a result of this exchange, the price of gold is the same all over the world. In any country where there is a lot of gold, the market remains stable. But where the level of buying and selling is low, there is a high price increase. Gold is bought and sold a lot in our country. Calculated at a higher price on sale. If the cost of one ring is 100 manat, it is sold for 500-600 manat. If there is a control committee like in the countries of the world, people will not be burdened either.”
Jewelry comes from abroad
Economist Rauf Garayev according to him, gold is not considered an important type of product both in terms of import and export: “In 2021, compared to 2020, a 2 percent increase in the level and dynamics of producer prices of industrial products was observed in jewelry products. In the main indicators of the work of enterprises engaged in the extraction of metal ores, there is a decrease in gold production compared to 2020. So, if 3570.8 kilograms of gold were produced in 2020, in 2021 this figure was 3351.1 kilograms. The highest production from 2015 to 2021 was 3711.5 kilograms in 2019. Retail sale of jewelry was 320929000.3 manats in 2020, and this figure was 357927000.3 manats in 2021.
According to R. Garayev, there will be an increase in the price of gold products in the Azerbaijani market: “Although gold is not considered one of the important products for our country, when its price rises in the world, it affects us to some extent. If we approach this logic, there will be an increase in the price of jewelry sold in the country this year. Because there is a demand for gold. We have the production of gold, but there is no conversion of it into jewellery. “Jewelry comes to the market from abroad.”
Gold is the safest source of investment
Economist Parviz Heydarov said that gold prices are rising due to the uncertain situation in the financial markets: “Currently there is uncertainty in the financial markets of the world. Therefore, investors face difficulty in making a specific decision. Investors do not know in which industry to put their funds so as not to sink. Gold is the safest source of investment for investors. Due to the uncertain situation, the price of gold rises. The price of gold rises throughout history precisely when such situations arise. Either there is uncertainty in the financial markets, or investors are facing huge risks, or the price of oil is uncertain. This is the main reason for the rise in the price of gold in the world market.
No decrease has been shown in the last year
P. Heydarov stated that it is impossible for a small country like Azerbaijan to stay out of the world situation: “Recently, the prices in the Azerbaijani market have been on an increasing trend, we are not witnessing a decrease in prices. The price of gold in the domestic consumer market did not show a decrease during the last 1 year, on the contrary, it went with an increasing trend. If the price of a product rises in the world markets, it is impossible for a small country like Azerbaijan to insure against it. But there is a certain limit to the increase in price. There can be no excessive price increase”. (“Kaspi” newspaper)
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