Saudi Gold Demand Remains Strong Despite Rising Prices
1. Jewelry Sales Surge in Early 2025
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Gold jewelry sales in Saudi Arabia increased by about 30–35% in Q1 2025 compared to the same period last year.
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Approximately 11.5 tons of gold jewelry were sold, up from 8.5 tons in Q1 2024.
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This growth contrasts with declines in other Gulf countries like the UAE, where demand dropped by 11%.
2. Increased Investment in Gold Bars and Coins
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Investment demand in gold bars and coins rose by 9% in 2024, reaching about 15.4 tons.
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The fourth quarter showed particularly strong demand, growing by 20% compared to the previous year.
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Saudis continue to view gold as a safe haven asset and an alternative investment.
3. Cultural and Economic Drivers
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Gold holds deep cultural significance in Saudi Arabia for occasions like weddings and celebrations.
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Government support through initiatives such as “Made in Saudi” and local jewelry authorities promotes the sector.
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Rising incomes and cultural preferences reinforce sustained demand.
4. Digital Transformation Boosts the Market
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Growing e-commerce platforms for gold jewelry and customization options contribute to market expansion.
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The Saudi gold market was valued at around $4.56 billion in 2024, projected to reach $8.34 billion by 2030, with a compound annual growth rate of roughly 10.6%.
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Advanced digital experiences like virtual try-ons and AI-driven personalization are enhancing consumer engagement.
5. Resilience Despite Price Surges
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Even with global gold prices exceeding $3,300–$3,500 per ounce in 2025, Saudi consumers continue buying robustly.
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Gold is seen as a long-term store of value and financial hedge amid economic and geopolitical uncertainties.
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Saudi Arabia’s Vision 2030 economic plans bolster consumer confidence and purchasing power.
Summary
Saudi Arabia’s gold market shows remarkable resilience and growth, driven by strong cultural traditions, investment appeal, and digital innovation—defying global price pressures.
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