Some gold traders launch a campaign titled “We’ve Stopped Selling Gold Bars.”

Amid the rapid transformations reshaping Egypt’s gold market, the debate between jewelry traders and bullion manufacturers is no longer a mere difference in perspective; it has evolved into a real struggle over the identity of the market and the future of the industry.

In the latest reaction, some traders launched a campaign under the slogan “We’ve stopped selling gold bars,” in an attempt to redirect investors toward bullion as a highly liquid savings vehicle. This comes as demand for raw gold investment continues to rise, reflecting a clear shift in saving behavior among a broad segment of citizens. At the same time, however, it raises concerns about the impact of this trend on the jewelry manufacturing sector and the artisans who form the backbone of the industry.

Ashraf Abdel Salam, a gold trader, described bullion buyers as fundamentally different from jewelry customers, noting that nearly 75% of buyers now treat gold as an investment alternative to real estate, bank certificates, or the stock market.

In his view, this shift reflects a broader change in saving patterns, but it also imposes a new reality that requires reorganizing the relationship between the different layers of the market.

He called on the Gold Division of the Federation of Egyptian Chambers of Commerce to hold meetings with bullion manufacturers to “reset the rules of the game.” He proposed raising traders’ profit margins to at least 1% with a minimum bar weight of no less than 20 grams, or alternatively adopting a 1.5% margin without weight restrictions. He believes restructuring margins could strike a balance between protecting traders’ interests and ensuring an orderly flow of investment supply.

On the other hand, Tamer Mohamed, another gold trader, warned that the issue goes beyond marketing strategies. In his assessment, bullion companies now exert significant control over market dynamics, channeling demand almost entirely toward raw metal investment. This, he argues, is draining liquidity away from jewelry and threatening the sector’s industrial value-added component.

Proponents of this view caution that if the trend continues, it could lead to a contraction in jewelry production, the closure of workshops and factories, and the exit of thousands of artisans from the market.

More critically, they stress that losing skilled labor does not simply mean job losses, but the erosion of expertise accumulated over decades of craftsmanship, design, and fabrication—skills that cannot be quickly replaced if the industrial base weakens.

Calls are therefore mounting for urgent intervention to reorganize the market and preserve a delicate balance between investment and manufacturing, so that gold does not shift from being a value-adding industry to merely a trade in raw metal.

For many, the equation is no longer about profit margins or bar weights alone, but about the future of an industry that provides livelihoods for thousands of families and represents a pillar of Egypt’s artisanal economy.

In this context, Jack Raafat, Chairman of Jack Group, previously put forward a clear proposal: to halt the production of small gold bars weighing less than one ounce. Raafat bases his proposal on what he considers a realistic reading of domestic demand patterns, where bullion—particularly small bars—has captured the lion’s share of liquidity, while jewelry sales, long the primary engine of the market, have declined noticeably.

Over recent years, amid rising gold prices and weakening purchasing power, many citizens have turned to small bars as a flexible option suited to limited savings.

However, according to Raafat, this unprecedented expansion has gradually transformed the market into a purely savings-driven one, lacking diversity, innovation, and industrial depth. He warns that this shift threatens a sector that generates real added value and provides direct and indirect employment for thousands of families.

The roots of the crisis trace back to March 2022, when sharp local gold price surges began amid a dollar shortage and currency depreciation, alongside the global rally in the precious metal.

These factors pushed a wide segment of consumers to treat gold purely as a savings haven, rather than as jewelry or a long-term wealth product linked to craftsmanship.

Raafat emphasizes that his proposal does not aim to eliminate bullion from the market, but to restore balance by limiting the production of smaller weights and redirecting part of demand back toward jewelry, thereby safeguarding the sustainability of the industry and preserving Egypt’s identity as one of the region’s most historic gold markets.

Between those who see the proposal as a necessary step to protect a national industry and those who fear restricting consumer choice amid challenging economic conditions, the market now stands at a genuine crossroads.

The issue is no longer simply about bar weights or profit margins, but a test of the market’s ability to achieve a delicate balance: encouraging savings, protecting industry, and considering purchasing power—without reducing gold to a mere trade in raw metal or allowing the industry to lose the spirit that shaped its legacy for decades.