Gold Division: Bullion Has Not Replaced Jewelry, While Saving Remains Egyptians’ Top Priority

Engineer Lotfy Moneeb, Vice Chairman of the General Gold and Jewelry Division at the Federation of Egyptian Chambers of Commerce, said that the sharp increase in demand for gold bullion in recent years does not mean it has displaced gold jewelry from the market. He stressed that each product serves a different purpose and that comparing the two from an economic perspective is misleading.

Moneeb explained that the decline in jewelry sales is primarily the result of changing economic conditions, which have led many Egyptians to prioritize saving and preserving wealth. As a result, demand for gold bars and coins has increased because they carry lower manufacturing costs and are viewed as efficient investment products, rather than because they are directly competing with jewelry.

He noted that bullion mainly appeals to savers and investors who compare gold with other savings instruments such as bank certificates of deposit and fixed-income products. Jewelry, on the other hand, serves a different market driven by weddings, gifts, and personal adornment—a segment that is more closely linked to household income and consumer spending.

According to Moneeb, rising living costs and broader economic pressures have prompted many consumers to postpone jewelry purchases while directing their savings toward investment-grade gold products that retain value more effectively and involve lower resale costs. This, he said, explains the gradual shift in the structure of demand within Egypt’s gold market over the past two years.

He added that only a limited group of buyers considers both bullion and jewelry when making purchasing decisions, while most consumers choose one or the other depending on their objective—whether saving and investment or personal use.

Moneeb believes that reviving demand for gold jewelry does not require limiting the spread of bullion products. Instead, he called for adapting jewelry offerings to current market conditions by expanding the production of lightweight designs, simplifying craftsmanship, eliminating expensive gemstones, and reducing manufacturing charges to make jewelry more affordable. Such products, he said, would enable consumers to combine personal use with long-term value preservation.

He emphasized that the market does not need to create competition between different gold products, as bullion and jewelry perform complementary economic roles. Continued strong demand for bullion, he said, reflects a shift in household saving behavior rather than a decline in the importance of gold jewelry.

Market observers believe Moneeb’s remarks highlight a significant transformation in Egypt’s gold market, where investment products now account for a growing share of purchases amid persistently high gold prices. Meanwhile, the future of the jewelry sector will depend on manufacturers’ ability to introduce lighter, more affordable products that better match consumers’ purchasing power, helping revive demand without undermining bullion’s expanding role as a preferred savings vehicle.